
NYSE: BEP
Key Data Points
Carbon Credits

NYSE: CWEN
Key Data Points

NASDAQ: FSLR
Key Data Points
Fiscal Quarter

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
The global economy is rapidly transitioning to new 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. The decarbonization of the global economy will take 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.
Several catalysts are powering the renewable energy sector these days. Potential benefits of investing in clean energy stocks include:
Here's a closer look at these leading renewable energy stocks.
Climate change and socially responsible investing are major catalysts for the clean energy revolution. The trend 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.
The Motley Fool got the chance to chat with investing expert Professor Priya Parrish of University of Chicago Booth School of Business. Here's what Parrish had to say about investing in the renewable energy realm.
Clearway Energy (CWEN +1.91%) 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 facilities powered by natural gas. Clearway also sells its power via PPAs that generate steady cash flow for the company.
The company has a lot of growth lined up. A combination of higher power prices, organic expansion projects, and secured acquisitions of operating assets and development projects provides Clearway with increasing growth visibility through 2027. It expects to grow its cash available for distribution (CAFD) per share by at least 20% from 2025 through 2027. Meanwhile, it sees the potential of delivering 5%-8% annual CAFD per share growth beyond 2027. That positions the company to grow its dividend within its 5% to 8% annual target range for the foreseeable future.
NextEra Energy (NEE -1.37%) is one of the world's largest producers of wind and solar energy. It generates power at its Florida utilities and its energy resources segment, the latter of which sells electricity under PPAs to other utilities and large corporate buyers.
Few companies are betting bigger on renewable energy than NextEra Energy. The utility's ambitious Real Zero plan aims to eliminate carbon emissions from its operations by 2045. It plans to significantly expand its solar energy and storage capacity while replacing natural gas in its power plants with green hydrogen and renewable natural gas.
NextEra has an excellent track record of creating shareholder value by investing in renewable energy. It has expanded its adjusted earnings per share (EPS) at a roughly 9% compound annual rate since 2004. Meanwhile, it has boosted its dividend at a 10% annual rate during that period, pushing its growth streak to more than 30 consecutive years.
The company expects its earnings to increase at or near the top end of its 6% to 8% annual target range through 2027. It also expects to deliver dividend growth of around 10% annually through at least 2026. That should give NextEra Energy the power to continue producing above-average total returns.
Brookfield Renewable (BEP -0.42%) is a global leader in renewable energy. It's one of the world's largest producers of hydroelectric power, which comprises almost half its portfolio. Brookfield also has been increasing its wind (onshore and offshore), solar (utility-scale and distributed generation, such as rooftop solar), and energy storage expertise. The company sells the bulk of its power under long-term PPAs that generate steady cash flow.
Brookfield has an excellent track record. It has increased its dividend payments at a 6% compound annual rate since 2001 while growing its funds from operations (FFO) per share at an 11% rate since 2016. The steady expansion of its portfolio through acquisitions and development projects has driven its growth.
Brookfield believes it can deliver more than 10% annual FFO per share growth over the next decade, powered by rising power prices, its extensive pipeline of renewable energy development projects, and additional acquisitions. The earnings growth should enable the company to hike its dividend by 5% to 9% annually -- making it one of the best renewable energy dividend stocks.
First Solar (FSLR -1.54%) 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. As of mid-2025, it had contracts in place to sell 64 gigawatts of panels through 2030, giving it significant visibility into future revenue.
First Solar has the means to continue expanding because it boasts one of the best balance sheets in the sector. Even with its heavy investments in building new manufacturing capacity, the company expects to end 2025 with $1.3 billion to $2 billion in net cash. The cushion gives it tremendous financial flexibility to continue expanding to capitalize on the increasing demand for solar panels. It has been building new manufacturing facilities to boost its production capacity.
Many companies focus on renewable energy, putting them in an excellent position to benefit from this investment megatrend. However, a few energy companies stand out above their peers as the best renewable energy stocks to buy. Top-tier green energy companies include:
Name and ticker | Market cap | Dividend yield | Industry |
---|---|---|---|
NextEra Energy (NYSE:NEE) | $173.0 billion | 2.64% | Electric Utilities |
Brookfield Renewable (NYSE:BEPC) | $7.1 billion | 3.74% | Independent Power and Renewable Electricity Producers |
Clearway Energy (NYSE:CWEN) | $3.6 billion | 5.72% | Independent Power and Renewable Electricity Producers |
First Solar (NASDAQ:FSLR) | $24.3 billion | 0.00% | Semiconductors and Semiconductor Equipment |
Constellation Energy (NASDAQ:CEG) | $112.1 billion | 0.42% | Electric Utilities |
Constellation Energy (CEG -2.43%) is the country's largest producer of carbon-free energy. That's largely due to its leading fleet of nuclear energy plants. The company also has a diverse mix of hydro, wind, and solar energy assets. Overall, Constellation powers more than 20 million homes and businesses, with 90% of its generation coming from carbon-free energy sources.
The company took a big step toward enhancing its already leading clean energy position in early 2025 by agreeing to acquire Calpine in a $26.6 billion deal. The transaction will create the country's largest clean energy provider, adding Calpine's natural gas, geothermal, and battery storage fleet to its portfolio. Those assets supply baseload power to help mitigate the intermittency of renewable energy.
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.