The Best Renewable Energy Stocks to Buy Today in 2021
The world is slowly transitioning from traditional energy sources such as fossil fuels to cleaner, greener renewable energy sources such as solar, wind, hydro, biomass, geothermal and others.
Renewable energy is witnessing exponential growth. According to the International Energy Agency (IEA), renewable energy resources provided 30% of the world’s electricity generation in 2020. By 2025, renewable energy resources are expected to overtake coal as the largest source of energy generation in the world. The IEA expects the brightest future for solar energy, expecting the technology to power the majority of that growth. The lower cost of solar power plants, especially when compared to coal and gas fired power plants makes it highly economical. The IEA also sees a bright future for wind and other low-carbon power sources as the world starts a transition to a cleaner future. As renewable energy becomes more popular and prevalent, companies involved with renewable energy are going to also grow. That makes renewable energy stocks a very good place to invest money.
Here Are the Best Renewable Energy Stocks to Buy:
Hannon Armstrong Sustainable Infrastructure (NYSE: HASI)
Kicking off our list of the best renewable energy stocks to buy, is Hannon Armstrong Sustainable Infrastructure Capital, Inc. It provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company’s projects include energy efficiency projects that reduce a building’s or facility’s energy usage or cost through the use of solar generation, including heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. It also focuses in the areas of grid connected projects that deploy cleaner energy sources, such as solar and wind to generate power; and other sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, and seismic retrofits and other projects. The company qualifies as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Hannon Armstrong Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland. If you were wondering how you can invest in renewable energy, this renewable energy stock is a good place to start.
Real estate and alternative energy funds are currently holding the company’s stock. Stock gain this year is 116.9% and the compound 3 year revenue growth rate is 34.4%
Sunpower Corp (NASDAQ: SPWR)
Next on our list of the best renewable energy stocks to buy, is SunPower Corporation. It delivers solar solutions worldwide. It operates through SunPower Energy Services and SunPower Technologies segments. The company provides solar power components, including panels and system components, primarily to dealers, system integrators, and distributors. It also offers commercial rooftop and ground-mounted solar power systems, and residential mounting systems. In addition, the company provides post-installation operations and maintenance services. Further, it leases and sells solar power systems to residential customers; and sells inverters manufactured by third parties. The company also serves investors, financial institutions, project developers, electric utilities, independent power producers, commercial and governmental entities, production home builders, residential owners, and small commercial building owners. The company was founded in 1985 and is headquartered in San Jose, California. SunPower Corporation is a subsidiary of Total Energies Nouvelles Activities USA, SAS. It is one of the companies that invest the most in renewable energy.
SunPower shares have been on an upward trajectory over the past six months, climbing nearly 470 percent during the period. Democrats have already outlined their plan for passing more green energy bills and pursuing environment-friendly policies. The recent surge was possibly a result of the Democrats getting closer to acquiring power in the US Government.
Moreover, Goldman Sachs recently lifted its price target for SPWR stock from $23 per share to $33 per share, another reason behind the latest stock rally.”
Daqo New Energy (NYSE: DQ)
Next on our list of the best renewable energy stocks to buy, is Daqo New Energy Corp. Together with its subsidiaries, it manufactures and sells polysilicon to photovoltaic products manufactured in the People’s Republic of China. It offers ready-to-use polysilicon, and packaged to meet crucible stacking, pulling, and solidification products. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is based in Wanzhou, the People’s Republic of China.
Stock gain this year is 660.8% and the compound 3 year revenue growth rate is 29.7%. Performance of companies like these is a great proof of the fact that renewable energy is a good investment.
First Solar (NASDAQ: FSLR)
Next on our list of the best renewable energy stocks to buy, is First Solar, Inc. It provides photovoltaic (PV) solar energy solutions in the United States and internationally. It operates in two segments, Modules and Systems. The Modules segment designs, manufactures, and sells cadmium telluride solar modules that convert sunlight into electricity to integrators and operators of PV solar power systems. The Systems segment provides power plant solutions, such as project development; engineering, procurement, and construction; and operating and maintenance services to utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.
Stock gain this year is 84.6% and the compound 3 year revenue growth rate is 6.1%.
Sunnova Energy International Inc (NYSE: NOVA)
Next on our list of the best renewable energy stocks to buy, is Sunnova Energy International Inc. It provides residential solar and energy storage services in the United States. The company offers operations and maintenance, monitoring, repairs and replacements, equipment upgrades, on-site power optimization, and diagnostics services. It operates a fleet of residential solar energy systems with a generation capacity of approximately 572 megawatts serving approximately 80,000 customers. Sunnova Energy International Inc. was founded in 2012 and is headquartered in Houston, Texas.
Stock gain this year is 349.5% and the compound YoY revenue growth rate is 27%. Renewable energy stocks are still rising in popularity among investors. Investment giants such as Berkshire Hathaway’s Warren Buffet holds a lot of energy stocks (traditional fossil fuel based), but doesn’t hold a lot of renewable energy stocks in his portfolio.
Canadian Solar Inc (NASDAQ: CSIQ)
Next on our list of the best renewable energy stocks to buy, is Canadian Solar Inc. Together with its subsidiaries, it designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products. The company operates through two segments, Module and System Solutions (MSS), and Energy. The MSS segment engages in the design, development, manufacture, and sale of a range of solar power products, including standard solar modules, specialty solar products, and solar system kits that are a ready-to-install packages comprising inverters, racking systems, and other accessories. It also provides engineering, procurement, and construction; and operation and maintenance (O&M) services. This segment’s energy solution products include solar inverters and energy storage systems for utility, commercial, residential, and specialty product applications. Its O&M services include inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar power projects. The Energy segment engages in the development and sale of solar power projects; and operation of solar power plants and sale of electricity. As of January 31, 2020, this segment had a fleet of solar power plants in operation with an aggregate capacity of approximately 880.2 MWp. The company’s primary customers include distributors, system integrators, project developers, and installers/EPC companies. Canadian Solar Inc. sells its products primarily under its Canadian Solar brand name; and on an OEM basis. It has operations in North America, South America, Europe, South Africa, the Middle East, Australia, Asia, and internationally. The company was founded in 2001 and is headquartered in Guelph, Canada.
Stock gain this year is 148.3% and the compound 3 year revenue growth rate is 4.4%.
Clearway Energy Inc (NYSE: CWEN)
Next on our list of the best renewable energy stocks to buy, is Clearway Energy, Inc. Through its subsidiaries, acquires, owns, and operates contracted renewable energy and conventional generation, and thermal infrastructure assets in the United States. As of October 12, 2020, it had contracted generation portfolio of 7,000 megawatts (MWs) of wind, solar, and natural gas-fired power generation facilities, as well as district energy systems. The company also owns thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,530 net MW thermal equivalent; and electric generation capacity of 139 net MWs. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units. Clearway Energy, Inc. was founded in 2012 and is based in Princeton, New Jersey.
Recently, the company has signed a 1.6 GW portfolio of renewable energy assets including solar and wind projects with its renewable development partner company Clearway Energy Group. Stock gain this year is 72.7% and the compound 3 year revenue growth rate is 4.1%.
Sunrun Inc (NASDAQ: RUN)
Next on our list of the best renewable energy stocks to buy, is Sunrun Inc. It engages in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking, as well as solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.
Stock gain this year is 526.7% and the compound 3 year revenue growth rate is 19.1%.
SolarEdge Technologies Inc (NASDAQ: SEDG)
Next on our list of the best renewable energy stocks to buy, is SolarEdge Technologies, Inc. Together with its subsidiaries, it designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. Its SolarEdge system consists of inverters, power optimizers, communication devices, smart energy management solutions, and a cloud-based monitoring platform. The company’s products are used in a range of solar market segments, such as residential, commercial, and small utility-scale solar installations. It also provides pre-sales support, ongoing trainings, and technical support and after installation services; and lithium-ion cells, batteries, and energy storage solutions for various industries, including energy storage systems, residential and commercial solar systems, uninterruptible power supplies, electric vehicles, aerospace, marine, and others. The company sells its products to the providers of solar PV systems; and solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. partnered with Schneider Electric to develop the residential solar market and provide homeowners with seamless energy management for smart homes of the future. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel. Stock gain this year is 231.3% and the compound 3 year revenue growth rate is 42.1%. Aside from being one of the best renewable energy stocks to buy, more specifically, this is one of the best solar energy stocks to buy as well.
Enphase Energy (NASDAQ: ENPH)
Rounding up our list of the best renewable energy stocks to buy, is Enphase Energy, Inc. Together with its subsidiaries, it designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers a semiconductor-based microinverter, which converts energy at the individual solar module level, and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems; Envoy communications gateway; and Enlighten cloud-based monitoring service, as well as other accessories. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as directly to the homeowners and the do-it-yourself market through its legacy product upgrade program or online store. In addition, it offers online and in-person training resources for solar and storage installers, and Enphase system owners through its Enphase University. Enphase Energy, Inc. was founded in 2006 and is headquartered in Fremont, California. Stock gain this year is 573.3% and the compound 3 year revenue growth rate is 34.3%. It is definitely one of the best solar and renewable energy stocks available to buy today.
So those were some of the best renewable energy stocks that you can buy today. As the world transitions from the traditional energy sources to cleaner, greener ones, renewable energy stocks are bound to rise in value in the future. Whether it’s solar, wind, hydro, geothermal, tidal or biomass, all these sources of energy and the companies associated with them are going to become more important as time passes and consequently, their stocks should also rise in value. If you are looking for some long term investment, renewable energy stocks appear to be a safe bet.