Renewable energy is a hot topic as people look for cleaner resources and ways to reduce the use of finite resources like natural gas, petroleum, and coal. Renewable energy sources can be used over and over without running out and include:
- Biomass: Energy that comes from wood, garbage, landfill gas, and agriculture
- Hydropower: Energy that comes from water
- Geothermal: Energy that comes from the earth’s heat
- Wind: Energy that comes from moving air that passes through turbines
- Solar: Energy that comes from the sun shining on solar panels
What Are Renewable Energy Stocks?
Renewable energy companies make renewable resources available to consumers around the world. Many of these companies are publicly traded on the stock market. Consumers can invest in segments of green energy that pique their interest or those that offer an enticing return on investment.
Top 4 Renewable Energy Stocks
Thousands of companies offer renewable resources, but these are the four that investors should consider first.
|Stock||Year High||Market Cap||Shares|
|NextEra Energy||88.295||6.62 billion||76.62 million|
|Albemarle||253.10||28.79 billion||116.95 million|
|Enphase Energy||229.04||30.72 billion||134.91 million|
|First Solar||118.06||12.62 billion||106.32 million|
1. NextEra Energy
As the United States’ largest utility provider, NextEra Energy is a renewable energy stock to invest in now. The company has the largest capacity for solar energy aside from China. NextEra Energy also recently invested in 391 megawatts of wind energy in California as well as New Hampshire. It’s promising to see a renewable energy company diversify its portfolio of energy options.
Albemarle earns a place on this list as the world’s largest producer of lithium . Electric vehicles rely on rechargeable lithium batteries for power. While other renewable energy stocks are down year-over-year, Albemarle is up 18%.
3. Enphase Energy
This energy technology company produces the parts used in consumer products like solar panels. It has the goal of making renewable energy easier for consumers to access. For many years, electric vehicles and solar panels were too expensive for many people to utilize. The team at Enphase Energy hopes that people begin seeing the long-term value and benefits of using renewable energy resources.
4. First Solar
Even though stock values are down 28% this year, First Solar is the largest solar provider in the United States. It stands apart from the solar competition because of an ultra-thin technology that holds promise for the future of solar power grids.
Are Renewable Energy Stocks Expensive?
Trends show that the use of green energy is on the rise This means more renewable energy solutions available to businesses and consumers. Tesla is a great example of success with renewable energy resources. The company saw over a billion dollars in quarterly earnings for the first time in 2021.
Good To Know
Renewable energy stocks show declines in value for the last year overall. However, climate change and waning supplies of fossil fuels point toward a future demand for green energy.
As renewable energy becomes more popular, the demand for stock increases. Renewable energy sources tend to be more expensive, and so do the company stocks. Investors may be tempted to consider investing outside of renewable energy because of the share prices. For people making long-term investments, renewable energy is a great segment to consider.
Investors shouldn’t overlook “fossil fuel” stocks. Many businesses that rely on fossil fuels for energy are beginning to invest heavily in renewable energy resources.
Data is accurate as of Oct. 29, 2021, and subject to change.