10 Best Alternative Energy Stocks To Buy According to Hedge Funds

8. Sunrun Inc. (NASDAQ:RUN)  

Number of Hedge Fund Holders: 35  

Sunrun Inc. (NASDAQ:RUN) is one of the largest residential solar energy companies in the US, offering a solar-as-a-service solution that enables homeowners to adopt solar power with little to no upfront cost.

On October 23, Sunrun Inc. (NASDAQ:RUN) announced the activation of New York’s largest residential power plant in partnership with Orange and Rockland Utilities, Inc., a subsidiary of Consolidated Edison, Inc. (NYSE:ED). This innovative virtual power plant leverages over 300 solar-plus-storage systems, with home batteries supplying stored solar energy to stabilize the grid during peak demand events throughout the summer. Initiated by Orange and Rockland Utilities, Inc. and approved by the New York State Public Service Commission as a demonstration project, this year-round program aims to support the state’s clean energy goals and promote a resilient power grid.

Sunrun Inc.’s (NASDAQ:RUN) synchronized batteries will discharge to relieve grid stress while providing backup power to participating customers’ homes. Through the program, the company aims to provide customers with free or discounted home batteries in exchange for a 10-year commitment to support grid reliability, facilitated by upfront payments from O&R based on installed battery capacity. Customers also benefit from bill credits for excess energy shared with the grid and retain a minimum of 20% battery power for their own backup use. Sunrun Inc. (NASDAQ:RUN) is also involved in discussions with data center developers to supply solar power for their facilities.

Sunrun Inc.’s (NASDAQ:RUN) multi-channel strategy, which includes direct-to-consumer sales and strategic partnerships, enables the company to efficiently attract a broad customer base. This diversified approach not only drives customer acquisition but also strengthens Sunrun Inc.’s  (NASDAQ:RUN) market presence.

Sunrun Inc. (NASDAQ:RUN) near-term prospects are enhanced by the growing adoption of storage solutions, as more homeowners seek to pair solar energy with battery storage, supporting the company in generating significant recurring annual revenue. Additionally, Sunrun Inc. (NASDAQ:RUN) has been investing in infrastructure and technology to improve its margins and profitability, helping the company optimize its business model as it scales its operations.