This article is for informational purposes only and does not constitute financial advice. Investing in stocks involves risk, and past performance is not indicative of future results. Always conduct your own research or consult with a financial professional before making investment decisions. The energy stock has a market cap of $4.3 billion and has an EPS of $0.32. It has high liquidity and trades more than 595,260 shares per day. Sunrun Inc provides homeowners with clean, affordable solar energy and storage.
What are other options for investing in renewable energy?
Many countries are experiencing oil and gas shortages due to the war in Ukraine. As a result, they are turning to new alternative energy sources. “Their accelerated buying of clean energy provides an important source of demand, while their efforts to decarbonize their products and services puts pressure on their supply chain to do the same.” Management expects rapid growth in electricity demand from data centers supporting generative AI. Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics.
As the industry grows, companies that are already leaders in renewable energy are expected to perform well. You can find Benzinga’s recommended list of renewable energy stocks on the list above. Coal was used in the early 1800s to fuel steam-powered boats and trains. Wood was the only commercially traded resource for renewable energy until the first hydropower plant began producing electricity in 1882. However, it’s taken quite a long time for renewable energy resources to catch up with the rest of the market. In the 2020s, it’s clear that there’s quite a lot of work to do, with small startups and larger brands spreading across the world.
Which renewable energy stocks are worth buying in 2025?
“Tesla representatives have expressed support for ending the subsidy to Trump’s transition committee. This may seem counterintuitive but seems to align with CEO Elon Musk’s previous statements.” “Westinghouse is well positioned to capture the increasing global tailwinds for nuclear,” according to Brookfield. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. ESG funds will invest in companies that make a positive contribution to society and the environment. As a result, they will not invest in certain companies, such as weapons or tobacco manufacturers.
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Renewable energy stocks clearly aren’t creating the same sort of buzz they were several years ago. Most of the industry’s key players are considerably more mature now. There’s also a better understanding of what’s working within the industry, and what isn’t. Apart from being an abundant and inexhaustible resource, wind also provides electricity without burning any fuel or polluting the air. Department of Energy, wind energy in the country helps avoid 336 million metric tons of carbon dioxide emissions annually, which is equivalent to emissions from 73 million cars. Brookfield Renewable Partners and NextEra Energy are among the best options for dividend investors.
The coming cash-flow gusher
NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. CMS Energy has an expected revenue and earnings growth rate of 7.4% and 7.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days.
Great strides have been made, with renewables now accounting for almost half of the UK’s electricity generation. However, capacity needs to ramp up significantly to hit net-zero targets by 2050, creating a significant opportunity for renewable energy companies. From solar to wind solutions, here are 10 stocks that have the potential to shape the future of energy, that may deliver high returns for investors along the way. Green energy stocks represent companies developing alternative technologies using renewable resources like sunlight, wind, heat, low-impact hydroelectric sources, and certain forms of biomass.
Shares can be bought using a general trading account, or a tax-efficient wrapper such as an individual savings account (ISA) or self-invested personal pension. Past performance is not a reliable indicator of future results. Looking ahead, it remains to be seen how Tesla will navigate through the economic downturn, having trimmed prices in the face of increasing competition from the Chinese EV powerhouse BYD. However, it remains an interesting play in the renewable space due to its strong brand and reputation. The graph below displays the past performance of General Electric Company.
- As governments and businesses commit to net-zero goals, the top renewable energy stocks are poised to deliver strong returns in 2025 and beyond.
- He holds a bachelor’s degree in business management with a specialization in finance from Transylvania University.
- Many want to have one because of bragging rights and prestige.
- Although all of these companies are related, Brookfield Renewable is the only one with direct exposure to the alternative energy market.
Mainland China remained the largest market, with a 44% share of global new investment in 1H 2025. The Zacks Consensus Estimate for BEPC’s 2025 earnings per share is pegged at a loss of 30 cents, which implies a solid improvement from the prior-year quarter’s loss of 89 cents. The stock boasts a four-quarter average earnings surprise of 21.09%. The Alternative Energy Industry has outperformed its sector as well as the Zacks S&P 500 composite over the past year. The stocks in this industry have collectively surged 55.7% in the past year against the Oil-Energy sector’s 1.3% decline.
- You have the option to trade stocks instead of going the options trading route if you wish.
- Investors may also want to consider other options such as investing in a renewable energy fund (which we cover in more detail in our FAQs below).
- It expects to grow its cash available for distribution (CAFD) per share by at least 20% from 2025 through 2027.
- Fluence Energy, Inc. is a joint venture of Siemens Aktiengesellschaft and The AES Corporation.
- These numbers support the idea that companies are reallocating capital out of the US and into Europe – particularly in offshore wind, where several developers refocused to North Sea sites over US projects.
- Canadian Solar (CSIQ, $10.98) has had a rough couple of years but remains one of Wall Street’s best green energy stocks for the long term.
What are the advantages of investing in renewable stocks?
We know that you’ll walk away from a stronger, more confident, and street-wise trader. The green energy stock has responded, rising more than 50% in 2025. Beyond inverters, SEDG has expanded into e-mobility and uninterrupted power supply markets.
How to Invest in Invesco Solar ETF (TAN)
Enter Cameco (CCJ -7.01%), one of the planet’s top suppliers of uranium, with access to plenty of high-grade reserves. Get a free, comprehensive financial plan in just 10 minutes and start working towards your money goals. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. And is still used by hundreds of banks, hedge renewable energy stocks funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.
However, energy demand should continue growing for years to come. TotalEnergies (TTE 0.31%), Chevron (CVX 1.42%), and Energy Transfer (ET 0.20%) stand out to a few Fool.com contributing analysts as the top energy stocks to buy right now. Of all major regions, the US saw the greatest drop in new renewable energy investment in 1H 2025, with committed spending down $20.5 billion (36%) from the second half of 2024. Before we present a few alternative energy stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.