10 Best Renewable Energy Penny Stocks to Invest In

5. Stem, Inc. (NYSE:STEM)

Number of Hedge Fund Holders: 13

Stock Price as of November 22: $0.36

Stem (NYSE:STEM) is a leader in the renewable energy sector, specializing in AI-enabled software for energy storage and sustainable energy solutions. The company’s flagship software, Athena, optimizes battery storage and renewable energy operations for businesses and utilities.

Athena, widely regarded as a market leader, leverages AI to forecast energy needs, optimize storage usage, and enhance energy management efficiency for clients. Stem, Inc. (NYSE:STEM) has also expanded its software portfolio with PowerTrack, a performance management tool designed to streamline the monitoring of solar and energy storage assets.

On October 1, Stem, Inc. (NYSE:STEM) announced a new software and services-centric strategy that focuses on four key priorities. First, the company is shifting to a software and services-centric business model to generate predictable, high-margin recurring revenue. Second, the company is expanding its energy consulting services by leveraging its technical expertise and market experience to build stronger customer relationships and create more reliable revenue streams. Third, Stem, Inc. (NYSE:STEM) is enhancing its AI-enabled software and edge device capabilities. The company plans to integrate PowerTrack and Athena, into a unified solution that spans asset management and optimization for solar, storage, and other technologies. Finally, the company is revising its approach to hardware resales. Rather than focusing on hardware procurement, Stem, Inc. (NYSE:STEM) will offer advisory services and only procure hardware under profitability criteria that align with its broader software and services strategy. These initiatives aim to deliver additional value to Stem, Inc.’s (NYSE:STEM) 16,000 existing customers while opening new opportunities with both new and existing clients.