In this article, we discuss the 10 best clean energy penny stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Clean Energy Penny Stocks To Buy Now.
Renewables have been increasing their overall share in new power capacity expansion across the globe over the past few years. In 2022, this number is set to reach 90%, according to a report by the International Energy Agency (IEA). Solar and wind are slated to lead this growth. The IEA estimates that solar PV development will reach 162 GW in 2022, up 50% compared to pre-pandemic levels. Global wind capacity additions are likely to outpace even solar growth. Biofuel and uranium production is also expected to rebound in 2022.
What To Expect From the Clean Energy Sector in 2022?
Market research firm Deloitte recently revealed that wind and solar capacity additions were around 13.8 GW in the first eight months of 2021, up around 28% year-on-year, despite supply chain issues that significantly affected the total output. Investments in green hydrogen and evolving supply chain strategies will be key trends that shape the industry in 2022. With an 85% decrease in cost in the past decade, solar PV development is also steadily making strides into the heart of urban and rural communities.
Richard Sansom, the head of research at S&P Global Market Intelligence, has highlighted that a record number of new solar and wind projects will come online in the US 2022 that will add 44 GW of solar and 27 GW of wind power, as well as 8GW of battery storage, to the national grid. Sansom believes that the momentum of the energy transition is building and the regulators and utilities are now increasingly turning their focus towards the assets that are likely to be left behind in this race.
US spending on upgrading and modernizing energy and water infrastructure will reach $63 billion in 2022, S&P Global estimates. The spending on utility renewables during the period will be around $14 billion. Investments in wastewater utilities are also likely to increase in 2022. Rising interest rates and inflation could affect the prices of utilities, leading to a mini-boom for the industry that has seen Return-on-Investment fall to the lowest levels in decades following the pandemic.
Investors eager to capitalize on these growth trends should consider investing in clean energy stocks. For those who cannot afford to invest in energy giants such as Tesla Inc (NASDAQ:TSLA), Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP), among others, there are several options in the penny stock universe that offer a healthy growth potential at much cheaper prices.
Our Methodology
The companies that operate in the clean energy sector and are priced below $5 per share were selected for the list through a careful assessment of business fundamentals and analyst ratings to provide readers with some context for their investment choices.
Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Best Clean Energy Penny Stocks To Buy Now
10. Ocean Power Technologies, Inc. (NYSE:OPTT)
Number of Hedge Fund Holders: 1
Ocean Power Technologies, Inc. (NYSE:OPTT) makes and sells systems that generate power by harnessing the energy of ocean waves. These systems are used to power remote offshore locations. Ocean Power Technologies, Inc. (NYSE:OPTT) is executing a long-term plan to commercialize this technology to a wider client base. In addition to power solutions, Ocean Power Technologies, Inc. (NYSE:OPTT) also provides real-time data communications and marine installation services for remote locations.
As part of a plan to grow the customer base, Ocean Power Technologies, Inc. (NYSE:OPTT) purchased 3Dent Technology, an offshore engineering and design firm, in early 2021. Ocean Power Technologies, Inc. (NYSE:OPTT) is headquartered in New Jersey.
Ocean Power Technologies, Inc. (NYSE:OPTT) has failed to attract significant hedge fund interest in recent months even though it is working on innovative new tech. At the end of the third quarter of 2021, 1 hedge fund in the database of Insider Monkey held stakes worth $74,000 in Ocean Power Technologies, Inc. (NYSE:OPTT), the same as in the previous quarter worth $979,000.
Just like Tesla Inc (NASDAQ:TSLA), Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP), Ocean Power Technologies, Inc. (NYSE:OPTT) is one of the stocks on the radar of shrewd investors.
9. United States Antimony Corporation (NYSE:UAMY)
Number of Hedge Fund Holders: 1
United States Antimony Corporation (NYSE:UAMY) is a metals and mining firm with significant interests in antimony, a metal used in the manufacture of semiconductors. These semiconductors are used to power solar systems, a leading clean energy source. United States Antimony Corporation (NYSE:UAMY) stock has received increased interest from investors this year as interest in rare earths mining rises after weak China production numbers and increased global demand resulting from supply chain pressures.
United States Antimony Corporation (NYSE:UAMY) has used the mini-boom to stockpile a large pile of cash that the company uses to expand production. The stock has returned more than 215% to investors in the past two years and as the demand for battery metals rises, there is plenty of room for the share price of United States Antimony Corporation (NYSE:UAMY) to climb higher in the coming months.
Major hedge funds have been buying stakes in United States Antimony Corporation (NYSE:UAMY) in the past few months. Among those being tracked by Insider Monkey, Chicago-based firm PEAK6 Capital Management is a leading shareholder in United States Antimony Corporation (NYSE:UAMY) with 104,335 shares worth more than $95,000.
8. American Resources Corporation (NASDAQ:AREC)
Number of Hedge Fund Holders: 3
American Resources Corporation (NASDAQ:AREC) is a resources firm that is expanding in the rare earth business. These rare earths are used in clean technologies like solar panels and EV batteries. In August, American Resources Corporation (NASDAQ:AREC) announced that it had selected an industrial site in Indiana to serve as a commercial rare earth element purification and isolation facility for the company in the US. According to American Resources Corporation (NASDAQ:AREC), the facility will be used to produce rare earth oxides, lithium and cobalt.
American Resources Corporation (NASDAQ:AREC) has also been working to recycle EV batteries. In October, the firm announced that it had achieved 99% purity from recycled batteries using a cost-effective solution to isolate end-metals, an important breakthrough for the emerging EV battery sector that has been hit with allegations that the batteries used to power electric vehicles are just as carbon-intensive as fossil fuel alternatives.
The innovative power American Resources Corporation (NASDAQ:AREC) has attracted hedge fund interest on Wall Street as well. At the end of the third quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $454,000 in American Resources Corporation (NASDAQ:AREC).
7. Broadwind, Inc. (NASDAQ:BWEN)
Number of Hedge Fund Holders: 9
Broadwind, Inc. (NASDAQ:BWEN) makes and sells electrical components for the clean energy industry. In September last year, Broadwind, Inc. (NASDAQ:BWEN) announced that it had received new tower orders from several wind turbine customers worth $12 million in the third quarter of 2021. With the new orders included, Broadwind, Inc. (NASDAQ:BWEN) has sold off more than one-fourth of the optimal tower production capacity for 2022 before the year has even begun. Broadwind, Inc. (NASDAQ:BWEN) has said it expects to new orders in the coming months as well.
Unlike expensive names like Tesla Inc (NASDAQ:TSLA), Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX), stocks like Broadwind, Inc. (NASDAQ:BWEN) give investors an option to invest in clean energy in budget.
In addition to clean energy, the industrial solutions and heavy fabrication business of Broadwind, Inc. (NASDAQ:BWEN) have also been helping the firm beat market estimates on earnings over the past few months. Analysts expect Broadwind, Inc. (NASDAQ:BWEN) to post close to $30 million in sales for the fourth quarter of 2021.
Hedge funds have been loading up on Broadwind, Inc. (NASDAQ:BWEN) stock as a new fiscal year begins. At the end of the third quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $2.4 million in Broadwind, Inc. (NASDAQ:BWEN).
6. Meta Materials Inc. (NASDAQ:MMAT)
Number of Hedge Fund Holders: 4
Meta Materials Inc. (NASDAQ:MMAT) is a smart materials and photonics firm. The company has been able to differentiate itself from peers in the marketplace by developing a low cost metamaterials production system. Meta Materials Inc. (NASDAQ:MMAT) has been expanding partnerships with original equipment manufacturers and making key acquisitions for growth in the past few months. In August, Meta Materials Inc. (NASDAQ:MMAT) purchased Nanotech Security for more than C$90 million.
The high functional materials and nanocomposites that Meta Materials Inc. (NASDAQ:MMAT) markets are used for many clean energy applications like EVs, solar panels, and the fast-growing health-tech sector. The company is based in Canada and has a market cap of around $680 million.
Hedge funds have been investing in Meta Materials Inc. (NASDAQ:MMAT) as well. At the end of the third quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $8.8 million in Meta Materials Inc. (NASDAQ:MMAT), compared to 5 in the preceding quarter worth $8.6 million.
In addition to Tesla Inc (NASDAQ:TSLA), Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP), Meta Materials Inc. (NASDAQ:MMAT) is one of the stocks attracting the attention of institutional investors.
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Disclosure. None. 10 Best Clean Energy Penny Stocks To Buy Now is originally published on Insider Monkey.
