Benzinga | Jul 13, 2021 08:18AM EDT

Cramer Shares His Solar Picks

Jim Cramer said on CNBC's "Mad Money" that his favorite solar stocks are First Solar, Inc. (NASDAQ:FSLR), Enphase Energy Inc (NASDAQ:ENPH) and Generac Holdings Inc. (NYSE:GNRC).

First Solar benefits from the tariffs because it makes its own panels. Its business is good because it is sold out for 2021 and it is more than 70% of the way to be sold out for 2022, said Cramer. He likes it more on a pullback, but he would put on a small position right here.

Enphase Energy dominates the micro inverters market. They are necessary to convert the direct current electricity to alternating current electricity. Cramer sees the company as a great long-term story.

A couple of years ago, Generac Holdings made a series of acquisitions to pivot into energy storage, which is the key to making solar energy viable, said Cramer. The stock is his favorite way to play an increasingly unreliable electric grid. It looks expensive at its current price, but the management has a fantastic track record, said Cramer. He would put on a small position.