Is FTC Solar Stock Halal?

Is FTC Solar Stock Halal?

How much of FTC Solar’s revenue comes from haram?

FTC Solar manufactures solar tracking devices and software designed to direct solar panels towards the sun and follow the sun’s path throughout the day to increase solar panel efficiency. 

FTC Solar earns its revenue from the following revenue sources:

  • Product Revenue:

Includes the sale of FTC Solar’s Voyager trackers, tracker components, and software licenses. 

  • Service Revenue:

Includes revenue generated from shipping and handling, subscription licenses, and maintenance and support services. 

The contributions from each of FTC Solar’s revenue segments for the six months ended June 30th, 2021, were as follows:

Practical Islamic Finance concludes:

None of FTC Solar’s revenue comes from anything inherently haram.

Does FTC Solar rely on interest to operate?

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What is FTC Solar’s Environmental, Social, and Governance (ESG) impact?

Environment

FTC has installed over 2.5 GW of trackers at more than 75 large-scale utility locations. Voyager trackers are capable of increasing solar production by up to 6%.

Social

No notable social highlights.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

FTC Solar has a net positive ESG impact.

Comfort Rating

From FTC Solar’s business, financial, and ESG reviews, Practical Islamic Finance rates FTC Solar stock as:

Comfortable to invest in from a Halal perspective.

Sources

FTC Solar 424B4 2021

FTC Solar Q2 2021 10-Q

FTC Solar Website

FTC Solar Voyager Tracker

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