What is renewable energy?

Green energy sources include:Wind.Solar.Hydro.Biomass.Geothermal.Tidal.Green hydrogen.

Is renewable energy a good investment?

The clean energy sector represents a massive opportunity for investors. However, they must pick stocks carefully, since not all will fully capitalize on this opportunity. Two key characteristics to look for are a strong balance sheet and a solar energy-focused growth profile. Those factors could give a company the power to generate higher returns.

Which stock is best for renewable energy?

There are several top renewable energy companies. Brookfield Renewable is one of the best renewable energy stocks. The company has a globally diversified renewable energy platform, including hydroelectric, wind, and solar operations. It also has a sustainable solutions business that invests in manufacturing solar panels, producing green hydrogen, and producing renewable natural gas. The company also has an excellent track record of growing shareholder value, including increasing its dividend by at least 5% each year since 2011.

Are there any renewable energy ETFs?

There are several renewable energy ETFs. Three notable ones are:iShares Global Clean Energy ETF (NASDAQ: ICLN): $2.2 billion in assets under management (AUM) as of mid-2026.Invesco Solar ETF (NYSEMKT: TAN) with $1.4 billion in AUM.First Trust Global Wind Energy ETF (NYSEMKT: FAN): $268.4 million in AUM.

Are clean energy stocks expensive?

Some clean energy stocks are expensive, while others are not. Popular companies focused on developing and manufacturing clean energy technology tend to be more highly valued (e.g., Tesla (NASDAQ: TSLA)). However, clean power producers (e.g., Brookfield Renewable, Clearway Energy, and NextEra Energy) tend to trade at less expensive valuations.

Are renewable energy companies profitable?

Many large renewable energy companies are profitable. However, smaller companies in their early growth stages might not yet have achieved sustainable profitability.

What is the biggest renewable energy company by market cap?

NextEra Energy was the largest renewable energy company, with a market cap of nearly $180 billion in mid-2026.

5 Best Renewable Energy Stocks for 2026 and How to Invest

By Matthew DiLallo – Updated Aug 13, 2026 at 4:24 PM EST | Fact-checked by Frank Bass

Key Points

Invest in large, financially strong renewable energy stocks for the best risk-adjusted return potential.
Consider buying shares in renewable energy stocks with steady dividend growth for income.
Investing in renewable energy supports climate goals and offers growth potential.

Renewable energy stocks are publicly traded companies that support the production and growth of renewable energy sources. Due to concerns about climate change, the world is shifting away from carbon-based fossil fuels to cleaner alternative energy sources, including renewable energy. Decarbonizing the global economy will require trillions of dollars in investment each year.

Renewable energy will play a crucial role in this energy transition. Here's a closer look at how to invest in the renewable energy industry.

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5 top renewable energy stocks for 2026

Renewable energy is a broad sector that includes,

Solar energy
Wind energy
Geothermal energy
Hydroelectric power
Biofuels (renewable natural gas, renewable diesel, and sustainable aviation fuel).
Green hydrogen

Many energy companies are investing in renewables. However, a few stand out as the best renewable energy stocks to buy. These top-tier green energy companies include:

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
NextEra Energy (NYSE:NEE)	$179.4 billion	2.77%	Electric Utilities
Brookfield Renewable (NYSE:BEPC)	$6.5 billion	4.27%	Independent Power and Renewable Electricity Producers
Clearway Energy (NYSE:CWEN)	$4.1 billion	5.34%	Independent Power and Renewable Electricity Producers
First Solar (NASDAQ:FSLR)	$24.0 billion	0.00%	Semiconductors and Semiconductor Equipment
Constellation Energy (NASDAQ:CEG)	$98.7 billion	0.58%	Electric Utilities

Data as of Aug 14, 2026. Showing 5 of 5 total entries.

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A large-scale solar power plant. — Image source: Getty Images.

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1. NextEra Energy

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NYSE: NEE

NextEra Energy

Today's Change

(0.21%) $0.18

Current Price

$86.19

Key Data Points

Market Cap

$179B

Day's Range

$85.83 - $86.53

52wk Range

$69.24 - $98.75

Volume

7.2M

Avg Vol

12.1M

Gross Margin

35.80%

Dividend Yield

2.77%

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2. Brookfield Renewable

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NYSE: BEP

Brookfield Renewable Partners

Today's Change

(-1.36%) $-0.48

Current Price

$34.75

Key Data Points

Market Cap

$11B

Day's Range

$34.69 - $35.56

52wk Range

$24.16 - $38.12

Volume

730.8K

Avg Vol

923.5K

Gross Margin

16.64%

Dividend Yield

4.34%

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Brookfield Renewable (BEP -1.36%) is a global leader in renewable energy. It's one of the world's largest producers of hydroelectric power, which accounts for 43% of its funds from operations (FFO). Brookfield has also been expanding its wind (onshore and offshore), solar (utility-scale and distributed generation, such as rooftop solar), and energy storage operations. The company sells the bulk of its power under long-term PPAs, generating steady cash flow.

Brookfield believes it can deliver more than 10% annual FFO per share growth through 2031, powered by rising power prices, its extensive pipeline of renewable energy development projects, and additional acquisitions (including investing in the $7 billion acquisition of Apya, the largest standalone battery storage developer in North America). The earnings growth should enable the company to raise its dividend by 5% to 9% annually, extending its streak of increasing its payment by at least 5% each year since 2011. With a yield of more than 4% in mid-2026, it's one of the best renewable energy dividend stocks.

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Carbon Credits

Carbon credits are tradeable permits that grant permission to emit a specific quantity of carbon dioxide or other greenhouse gases.

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3. Clearway Energy

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NYSE: CWEN

Clearway Energy

Today's Change

(-0.23%) $-0.08

Current Price

$34.14

Key Data Points

Market Cap

$4.1B

Day's Range

$34.09 - $34.76

52wk Range

$27.67 - $41.74

Volume

664.2K

Avg Vol

1.3M

Gross Margin

16.16%

Dividend Yield

5.34%

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Clearway Energy (CWEN -0.23%) is one of the largest owners of renewable energy-generating facilities in the U.S. It complements its wind and solar energy portfolio with highly efficient natural gas-fired facilities. Clearway also sells its power through PPAs, which generate steady cash flow for the company.

The renewable power company has lots of growth in the pipeline. A combination of higher power prices, organic expansion projects such as repowering legacy wind farms and adding battery storage capacity, and secured acquisitions of operating assets and development projects provides Clearway with increasing growth visibility through 2030. Secured investments drive its expectation of growing its cash available for distribution (CAFD) per share by a 7% to 8% compound annual growth rate through 2030. Meanwhile, Clearway expects to deliver annual CAFD per-share growth of 5% to 8%+ in 2031 and beyond. The growing opportunity to support the surging power needs of data centers represents meaningful upside potential to that growth plan.

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4. First Solar

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NASDAQ: FSLR

First Solar

Today's Change

(0.84%) $1.87

Current Price

$225.56

Key Data Points

Market Cap

$24B

Day's Range

$223.75 - $230.96

52wk Range

$179.06 - $320.95

Volume

2.2M

Avg Vol

2.5M

Gross Margin

44.00%

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First Solar (FSLR +0.84%) develops and manufactures thin-film solar panels that use their larger size to generate more energy than competing technologies, making them ideal for utility-scale solar energy projects.

As one of the world's leading solar panel makers, the company is in an excellent position as demand for solar panels accelerates. It's actively investing to increase its capacity to produce solar panels and meet demand. In mid-2026, it had contracts in place to sell 45.1 gigawatts of panels through 2030, giving it significant visibility into future revenue ($13.6 billion)

First Solar has the means to continue expanding, thanks to one of the sector's best balance sheets. Even with its heavy investments in building new manufacturing capacity, the company expects to end 2026 with $1.7 billion to $2.3 billion in net cash. The cushion provides it with tremendous financial flexibility to continue expanding and capitalize on the increasing demand for solar panels. In late 2025, the company announced plans to invest $300 million to build a new U.S. production facility in South Carolina, with operations expected to begin in the second half of 2026.

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5. Constellation Energy

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NASDAQ: CEG

Constellation Energy

Today's Change

(1.39%) $3.86

Current Price

$282.50

Key Data Points

Market Cap

$99B

Day's Range

$280.67 - $287.00

52wk Range

$228.63 - $412.70

Volume

Avg Vol

3.6M

Gross Margin

17.37%

Dividend Yield

0.58%

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Constellation Energy (CEG +1.39%) is the world's largest private-sector power producer and the top generator of clean power. It has 55 gigawatts of capacity, accounting for about 10% of the country's clean power capacity and enough to power 27 million homes. The company has an industry-leading geothermal fleet alongside wind, solar, and hydropower assets. It also has industry-leading nuclear energy and natural gas fleets. The company significantly enhanced its already leading position in clean energy in early 2026 by closing its $26.6 billion acquisition of Calpine.

The combined company expects to have ample opportunities to expand its clean energy capacity. Current and potential growth projects include nuclear energy restarts and renewals, solar-plus-battery storage projects, carbon capture and storage, and new natural gas capacity. Along with securing higher power prices on its legacy assets, these growth investments will help drive more than 20% annual earnings-per-share growth through 2029.

How to buy renewable energy stocks

Here's a step-by-step guide on how to buy renewable energy stocks:

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in renewable energy stocks

Investing in renewable energy stocks has its share of pros and cons. Some of the benefits include:

Growth potential: Demand for renewable energy is growing rapidly, which should drive strong gains for the top renewable energy stocks.
Passive income: Many renewable energy companies generate stable cash flows, enabling them to pay dividends to investors.
Supporting the environment: Investing in renewable energy companies helps expand the environmentally friendly industry by providing it with the capital to grow.

Some of the risks of investing in renewable energy stocks include:

Interest rates: Rising rates make it more expensive to finance new renewable energy projects, thereby impacting capacity growth.
Competition: Rising competition in the renewable energy sector can reduce growth and profit margins for some companies.
Policy changes: New legislation, tax law changes, tariffs, and other government policies can affect returns on new renewable energy projects, thereby influencing component demand and capacity growth.

Methodology: How these stocks were chosen

Many companies focus on harnessing the power of renewable energy. Several concentrate on manufacturing solar panels, wind turbines, and other components to generate this power, while others focus on owning and operating renewable energy-generating assets. This group of companies stood out as the largest and financially strongest players in the sector. That financial strength enables them to continue investing throughout the sector's ups and downs. They're in the best position to generate attractive returns for investors, especially relative to their risk profiles.

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Should you invest in renewable energy stocks?

Climate change and socially responsible investing are major catalysts for the clean energy revolution. Meanwhile, surging electricity demand to support AI data centers, electric vehicles, and advanced manufacturing facilities will further accelerate the growth of renewable energy. These trends will drive trillions of dollars of investment in renewable energy in the decades ahead.

Although the rising tide of clean energy should lift all boats, the top renewable energy stocks should generate some of the best returns for investors. Green energy companies that have already proven to be value creators and have the financial strength to capture opportunities should yield outsize total returns in the coming years.

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Investing in renewable energy stocks: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Brookfield Renewable Partners, Clearway Energy, First Solar, and NextEra Energy. The Motley Fool has positions in and recommends Constellation Energy, First Solar, and NextEra Energy. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

5 Best Renewable Energy Stocks for 2026 and How to Invest

Key Points

5 top renewable energy stocks for 2026

1. NextEra Energy

Key Data Points

2. Brookfield Renewable

Key Data Points

3. Clearway Energy

Key Data Points

4. First Solar

Key Data Points

5. Constellation Energy

Key Data Points

How to buy renewable energy stocks

Benefits and risks of investing in renewable energy stocks

Methodology: How these stocks were chosen

Should you invest in renewable energy stocks?

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Investing in renewable energy stocks: FAQ

What is renewable energy?

Is renewable energy a good investment?

Which stock is best for renewable energy?

Are there any renewable energy ETFs?

Are clean energy stocks expensive?

Are renewable energy companies profitable?

What is the biggest renewable energy company by market cap?

1. NextEra Energy

2. Brookfield Renewable

3. Clearway Energy

4. First Solar

5. Constellation Energy

Benefits and risks of investing in renewable energy stocks

Methodology: How these stocks were chosen

Should you invest in renewable energy stocks?

Related investing topics

5 top renewable energy stocks for 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

How to buy renewable energy stocks