What are the best renewable energy stocks to watch?

Investing in renewable energy: what you need to know 

Renewable energy is an expanding industry, with estimates stating that 30% of all global energy generation comes from renewable sources in 2020. The year has also seen an increase of 5% on 2019 for renewable energy generation across the globe – including hydroelectric, solar and wind.

Hydroelectric power accounts for the largest share of renewable energy generation, coming in close to 60%. Solar and wind make up the majority of the rest of the proportion of renewable energy generation, and the expansion and development of the renewable energy sector means that this industry is one to watch. 

We’ve put together this list of five exciting renewable energy stocks to either trade or invest in.

Top five renewable energy stocks  

1. NextEra Energy 
2. Brookfield Renewable Partners 
3. First Solar 
4. The Renewable Infrastructure Group 
5. Duke Energy 

We’ve included five exciting renewable energy companies on this list. These include some large cap companies, some companies that are looking to expand their renewable operations, and some established industry leaders. 

NextEra Energy 

NextEra Energy is the world’s largest generator of renewable energy from the sun and wind power. The company states that in 2018, almost 100% of the power produced at NextEra facilities was renewable – newer statistics are not currently available on the company site.

NextEra Energy is listed on the New York Stock Exchange (NYSE) under the NEE ticker. The company is also a component of the Dow Jones Utility Average (DJUA), the S&P 100 and S&P 500 indices.

Trade NextEra Energy shares

Brookfield Renewable Partners 

Brookfield Renewable Partners is a leading renewable energy generator, with ‘approximately 19,300 megawatts of capacity and 5288 generating facilities in North America, South America, Europe and Asia’. The company has a portfolio of renewable generation made up by 78% hydroelectric power. The remainder is made up of solar and wind. 

Despite being majority-owned by Brookfield Asset Management, Brookfield Renewable Partners is listed in its own right, on the NYSE under the BEP ticker. 

Trade Brookfield Renewable Partners shares

First Solar  

First Solar is headquartered in Arizona, US, but the company has operations across North America, South America, Europe and Asia. The company states that it has the strongest balance sheet in the industry, and claims that no other company invests more in research and development in the renewable sector than it does.

First Solar is listed on the NASDAQ exchange under the FRSL ticker. It is also a component of the S&P 400 index. 

Trade First Solar shares

The Renewables Infrastructure Group  

The Renewables Infrastructure Group is a UK-based investment trust which focuses on investments in the renewable energy sector and electricity generation. The company is relatively new, being founded in 2013, but it has grown in influence since.  

The Renewables Infrastructure Group is listed on the London Stock Exchange (LSE) under the TRIG ticker, and it is also a component of the FTSE 250 index.

Trade The Renewables Infrastructure Group shares

Duke Energy 

Duke Energy is a US energy company, with operations across North America and Canada. The company owns and operates more than 2975 megawatts of solar and wind projects across these territories, and it’s focus going forward is on expansion in the renewable sector.

Aside from having a large stake in the coal, oil and natural gas, the company does have an entire renewable energy subsidiary focused on solar and wind. Duke Energy is listed on the NYSE under the DUK ticker. It is also a component of the DJUA, S&P 100 and S&P 500 indices.

Trade Duke Energy shares

How to buy or invest in renewable energy stocks 

Buying and investing are two different ways to get exposure to renewable energy stocks. ‘Buying’ is often associated with trading, which means that you’ll be taking a speculative position on renewable energy stocks.  

You can trade renewable energy stocks with financial derivatives like CFDs. These products let you speculate on the share price without owning the stocks directly, meaning you can ‘buy’ (go long) to speculate on the price rising, as well as ‘sell’ (go short) to speculate on the price falling. 

Create a trading account 

Investing means that you’ll be owning the stocks outright, making you a shareholder with voting rights and the ability to receive dividends – if the company pays them. You’ll profit from upwards movements in a stock’s price if you are dealing directly. 

Renewable energy industry: what’s the outlook?  

The outlook for renewable energy is strong, especially as governments around the world become more aware of the impact that burning fossil fuels have on the environment. The UK went without coal-generated energy for more than two months in 2020, and the US reduced coal consumption by 19% in 2019. 

And, with a shift towards more renewable energy infrastructure projects including offshore and onshore windfarms and solar power facilities, the outlook for renewables is likely to go from strength to strength in the coming years. 

Best renewable energy stocks summed up 

• Renewable energy comes from hydroelectric, solar and wind power and it is widely accepted as a more sustainable alternative to fossil fuels 
• There are two main ways to take a position on renewable energy stocks: trading or investing 
• Trading means that you’ll be speculating on share prices rising or falling with CFDs 
• Investing means that you’ll be taking direct ownership of the shares, making you a shareholder and profiting from any increases in the share price 
• The outlook for renewables is strong in the coming years, particularly as governments start to shift away from fossil fuels towards more sustainable forms of energy generation