7 Best Clean Energy Stocks to Buy Now

In this article, we will be looking at the 15 best clean energy stocks to invest in. You can skip our detailed analysis of the energy industry and its future outlook by clicking to see the 5 Best Clean Energy Stocks to Invest In. The ETF offers fairly broad diversification across sectors and themes. Sector allocations included utilities (29%), industrials (28%), consumer discretionary (17%), information technology (13%), energy (5%), materials (5%), and financials (2%). Meanwhile, theme allocations included electric vehicles (29%), solar (26%), wind (19%), hydro/geothermal (9%), bioenergy (8%), fuel cell/hydrogen (6%), and energy management and storage (4%). The First Trust NASDAQ Clean Edge Green Energy Index Fund focuses on clean energy companies that trade on major U.S. stock exchanges.

Canadian Solar (CSIQ, $35.86) is one of Wall Street’s best green energy stocks. CSIQ is a solar power company that provides integrated solutions including solar power products, services and systems. It is one of the world’s largest makers of solar photovoltaic products, as well as one of the largest solar power plant developers.

According to Deloitte’s “2023 renewable energy industry outlook,” the IRA extends wind and solar tax credits for projects that started construction before 2025 and tech-neutral credits through at least 2032. Green energy stocks should get a lift thanks to the clean energy incentives in the Inflation Reduction Act (IRA), along with the dual catalysts of rising demand and lower costs. Similarly, the company will invest $4.5 billion to build, own and operate the world’s largest blue hydrogen production facility in Louisiana. Outside the United States, the company is investing in Saudi Arabia to supply 650 tons per day of carbon-free hydrogen for the transportation sector. With several other projects in the pipeline, the company has robust long-term growth visibility.

This ETF has an equal-weight strategy, investing a similar amount across a broad array of clean energy companies. This strategy allows investors to take a wide-ranging approach to clean energy. The fund holds companies involved with solar energy, EVs, geothermal energy, energy storage, wind energy, and climate tech.

Clean energy ETFs offer a broad approach to investing in the sector

These include businesses that manufacture components, such as wind turbines and solar energy inverters. It also features businesses that operate wind farms and solar energy facilities, such as electric utilities. This strategy allows investors to focus on companies concentrating on producing renewable energy. At the time of this writing, Tesla stock was priced over $660 a share. Other clean energy stocks, such as NextEra Energy, are far less expensive, selling for around $70 a share. Like all stocks, clean energy stock prices may fluctuate due to larger market forces — in this case, factors like new legislation, oil prices and public interest.

The different approaches give investors lots of ways to use ETFs to invest in clean energy. Renewable energy is also becoming more affordable, making it more enticing to buyers and potentially to investors. The price of solar energy has dropped, as has the cost of solar panels themselves. Wind energy is also one of the fastest-growing energy sources in the world, and one of the cheapest. Nevada-based Ormat Technologies has a portfolio of geothermal and solar energy assets that have long-term contracts with local utilities. The company generates roughly 80% of revenue from building and operating geothermal plants.

Brookfield Renewable Partners L.P. (NYSE: BEP)

This ETF’s focus on wind energy makes it ideal for those who want to invest specifically in the growth of the sector. It also offers broad geographic diversification and exposure to diversified companies with some wind activities to complement its wind energy pure plays. For example, is most of your portfolio already made up of individual stocks?

Many companies are signing power purchase agreements (PPAs) with electric utilities and other electricity generators to specifically buy power produced from renewable sources. After that, Plug Power can continue its focus on developing systems that allow electric vehicles to recharge in a few minutes rather than several hours — technology that has the potential to revolutionize the industry. While every energy source has its set of pros and cons, one of the advantages of geothermal energy is its huge potential. Through ongoing research and development, it’s conceivable that the number of exploitable geothermal resources will increase. Unlike the intermittency of wind and solar, geothermal plants have a much more predictable power output flow.

NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. In terms of sectoral breakdown, we see utilities (39%), followed by producer manufacturing (27%) and electrical technology (20%). Almost 66% of the holdings in the fund are based in the U.S., followed by China (7%), Canada (9%), Brazil (4%), and others. The company stands as the only integrated player stateside with control over all steps of the supply chain. As a result, operations are shielded from price volatility or other disruptions seen in the industry. Campbell, California-based ChargePoint is the market leader in the electric vehicle (EV) charging space with a leading market share in North America.

Invesco WilderHill Clean Energy ETF

It’s a good rule of thumb to limit your exposure to individual companies — diversified investments like mutual funds are often a wise choice to make up the bulk of your portfolio. SolarEdge Technologies develops and manufactures an optimized inverter system. This component maximizes the power produced by solar panels, helping to lower the cost of energy generated by the system. Like First Solar, SolarEdge Technologies should benefit from the accelerating growth of solar energy worldwide. Climate change is forcing companies and other institutions to focus on how they can do their part to decarbonize.

• That means it’s an ideal ETF to make a directional bet on the upside of solar energy investment.
• Brookfield’s earnings have increased at a more than 10% compound annual rate over the past decade.
• Half of that power is enough for a cross-country drive by 15 million Teslas.
• The company has also started to leverage its expertise in inverters to create other smart energy solutions.
• Few companies are betting bigger on renewable energy than NextEra Energy.

There are many of them, with different areas of focus and varying expenses. Based on Biden’s comments, we can expect more stimulus spending by the federal government — possibly a lot more, which means an increase in the Federal Reserve’s purchases of U.S. That could very well mean another plunge in long-term interest rates and a continued flow of new money into the stock market. In the past two years, Brookfield Renewable Partners stock has more than doubled to around $42 a share. While the stock is 17% off its 52-week high of $49.87, investors should look to buy the dip and hold this stock for the long haul.

Overall, NEE stock deserves attention because of its balanced profile. Leveraging a market capitalization of $170 billion, NextEra is currently considered fairly valued based on a basket of valuation metrics. The company’s gross margin is a particular highly; at 45%, it’s substantially higher than the 29% industry median.

If the company you invested in goes out of business, you lose the value of your investment, but you generally will not lose more than you invested unless you engaged in riskier trading strategies. For instance, if you bought a wind energy stock for $100 and the company went out of business, you would lose the $100, but you would not owe $100. Many people have personal or ethical reasons to invest in renewables, but the chance to help the planet isn’t the only potential benefit of including renewable energy in your portfolio. When oil and other traditional energy resources are experiencing volatility, renewable investments may act as a stabilizing force.

Best Clean Energy Stocks to Buy: Plug Power (PLUG)

That helped power a 6% compound annual growth in its dividend payments since 2014. Governments are also working to accelerate global decarbonization by proposing and passing legislation to increase investment in the sector. This legislation will drive $369 billion in energy security and climate change investments. The top hedge fund holder of this stock is Daniel Patrick Gibson’s Sylebra Capital Management which had $93 million invested in the stock at the end of September. This is a hard pivot from our first-quarter results, which were driven by our short book and tail risk strategy.

• NextEra has expanded its adjusted earnings per share at an 8.3% compound annual rate since 2007.
• Moreover, 43 of the 45 largest U.S. investor-owned utilities have committed to reducing their carbon emissions by raising the use of renewables.
• Westinghouse services about half the global nuclear power generation sector and is the original equipment manufacturer to more than half of the global nuclear reactor fleet.
• Campbell, California-based ChargePoint is the market leader in the electric vehicle (EV) charging space with a leading market share in North America.

This view suggests that future legislation could further boost the country’s investment level. Orthofix Medical investors suffered their worst day in 28 years on Tuesday after the spine and orthopedics company fired three top executives “for cause.” Get this delivered to your inbox, and more info about our products and services. The average analysts’ recommendation on the stock is Buy, according to Nasdaq. Since 2019, CSIQ revenues have more than doubled from $3.2 billion to $7.5 billion for 2022.

The company’s fuel cell has already been deployed in hundreds of applications across healthcare, data centers, critical manufacturing and retailers. But I would look at the larger picture, considering the developments in the hydrogen economy. PLUG has guided revenue of $5 billion in 2026 with a gross margin of 30%.

“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.” “We believe the IRA provides growth visibility for a broad range of low-cost clean energy solutions, in a predictable way and for a long time,” Ketchum said. “In this environment, low-cost renewables will help drive long-term value for our customers and our shareholders and unitholders.” GE Vernova will incorporate General Electric’s operations in renewables, power, digital and energy financial services under the leadership of CEO Scott Strazik. He has said that the focus of Vernova would be to address climate change and foster sustainable development.

Few companies are betting bigger on renewable energy than NextEra Energy. The utility unveiled its Real Zero plan in 2022 to eliminate carbon emissions from its operations by 2045. It aims to significantly expand its solar energy and storage capacity while replacing natural gas in its power plants with green hydrogen and renewable natural gas.

SPDR S&P Kensho Clean Power ETF (CNRG)

The Massachusetts Institute of Technology conducted an in-depth analysis into the future of the clean energy sector. The economic activity during and after the pandemic triggered price spikes for multiple commodities. Russia’s invasion of Ukraine in February 2022 added to the inflation crisis, causing drastic increases in energy prices and https://1investing.in/ massive supply-chain disruptions. Following the Inflation Reduction Act (IRA), a grand total of 64 countries have followed the U.S. and have legislated in an effort to accomplish decarbonization goals in the next couple of decades. The Inflation Reduction Act facilitates upcoming decarbonization technologies, including hydrogen and EVs.

Moreover, two of the biggest banks in the US also pledged about $4 trillion for climate-oriented financing in the upcoming decade. Why is General Motors (GM, $33.62) on this list of the best green energy stocks to buy? With that in mind, here are nine of the best green energy stocks for investors looking to profit on the growing trend toward sustainability.

Analysts point out that the company’s addressable market is growing fast. SolarEdge Technologies has been able to expand further into smart energy solutions, thanks in part to its strong financial profile. The company’s core inverter business is profitable and generates chartered accountant monthly salary lots of cash. That gives it the flexibility to continue expanding to further capitalize on the decarbonization megatrend. As one of the world’s leading solar panel makers, the company is in an excellent position as demand for solar panels accelerates.

It holds companies that manufacture, develop, distribute, and install clean energy technologies, such as solar, wind, battery storage, fuel cells, and electric vehicles (EVs). The company expects its investments to continue paying dividends to shareholders. It predicts earnings will increase at or near its 6% to 8% annual target range through at least 2026, powered by continued investments in renewable energy.