The demand for green energy investments has been rising, driven by the goal of reducing carbon emissions and tackling climate change. According to the International Energy Agency, of the $530 billion invested in renewable energy in 2018, solar photovoltaic and wind received the largest share of investments at $138.5 billion and $127.5 billion, respectively.
As a result of the growing interest, publicly-traded companies have started to enter the green energy space, giving investors the opportunity to participate in this burgeoning industry. As more and more organizations move towards and commit to reducing their greenhouse gas emissions, companies that produce and distribute renewable energy can be seen as prime investment opportunities. With that in mind, here is a look at the top green energy stocks to consider investing in.
Renewable Energy Stocks
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First Solar
First Solar is an American-based solar energy company and one of the top green energy stocks out there. In 2019, the company placed third place in the world for solar module shipments, topping 11.1 gigawatts (GW) of installations. First Solar produces its own solar photovoltaic cells and module technology from its research and development center in Perrysburg, Ohio. In December 2020, First Solar announced a partnership with U.S. utility company Dominion Energy, to produce 20 GW of renewable energy projects in the business’s U.S. service territory. -
Nextera Energy
Nextera Energy is one of the world’s largest renewable energy companies, operating one of the largest wind and solar fleets in the U.S., making it one of the top green energy stocks to look into. Nextera has more than 20,000 MW of wind and solar generating capacity, and its renewable power sources account for 37 percent of the company’s total generating capacity. Nextera is also the largest generator of solar energy in the United States, with more than 8,200 MW of installed solar energy generation capacity, and more than 4,600 MW of that capacity located in Florida. -
Enphase Energy
Enphase Energy is a solar energy company based in California, which makes it one of the top green energy stocks to had to the list. The company is known for its microinverters which are installed over solar panels, allowing for more control over the solar energy production in homes and businesses. It has also helped spur the development of self-consumption solar projects, which allow for businesses and households to produce and consume solar energy without sending it back to the grid. In 2020, Enphase acquired the leading solar monitoring company, SunPower, which will enable the company to offer better advice on when and how to make best use of solar energy. -
Pattern Energy Group
Pattern Energy Group is an independent renewable energy company based in San Francisco. It currently has 14 operating assets totaling 3,561 MW of owned capacity located across the United States, Canada, Japan, and Chile, making it one of the top green energy stocks to track. Pattern Energy focuses on wind and solar energy projects, and it has close to 40 years of experience in the renewable energy industry. It has also invested in community-based initiatives to connect renewable energy resources to low-income areas. Patterns recently signed long-term power purchase agreements with utility companies like Pacific Gas & Electric and Southern California Edison, in order to further its renewable energy goals. -
EDF Renewables
EDF Renewables is a global renewable energy company headquartered in the United Kingdom. The company operates wind, solar, and storage projects across the Americas, Europe, and the Asia Pacific region. EDF Renewables is one of the top green energy stocks to consider investing in, as it has an impressive portfolio of projects totaling 41 GW in 23 countries. It is also investing heavily in offshore wind projects, and has announced plans to more than triple its capacity in the coming years. EDF is one of the largest producers of renewable energy in the world, and is currently in the process of developing 2.1 GW worth of projects in the United States.
Green energy investments are becoming increasingly attractive for investors who want to be part of a rapidly emerging industry. As the world has become more environmentally conscious, investing in green energy stocks is an excellent way to generate returns while contributing to environmentally friendly initiatives. The top five green energy stocks highlighted within this article are all well-known and established players within the industry, and each one offers investors an opportunity to be part of a growing industry. Investors looking for a way to get involved in renewable energy should definitely consider these top green energy stocks to help usher in a more sustainable future.
