Goldman is still positive on the solar industry amid the sell-off — Here are the firm's top picks

Aaron Newsom, left, an installer for the solar company, Sunrun, and Tim McKibben, a senior installer, install solar panels on the roof of a home in Granada Hills.
Mel Melcon | Los Angeles Times | Getty Images

The recent pullback in solar stocks is overdone, and with strong growth prospects on the horizon the sell-off represents a buying opportunity for some of the stocks in the space, Goldman Sachs said in a note to clients.

The firm pointed to a number of reasons to remain positive on the industry, including solid fundamentals, a healthy financing backdrop, as well as policy catalysts.

More In Street Calls

CNBC ProCiti hikes Tesla earnings estimates, but still sees big drop in the stock ahead
CNBC ProHere are Thursday's biggest analyst calls of the day: Tesla, Amazon, Alphabet, Microsoft & more
CNBC ProDeutsche Bank sees a short-term trade opportunity in Ford ahead of earnings