According to a report by the World Economic Forum published on November 8, the US election result is expected to have a significant impact on the transition to renewable energy sources. Solar and wind energy stocks fell sharply following the election, as Donald Trump’s victory is anticipated to have a negative short-term impact on current climate policies. The president-elect has proposed policies that include increasing natural gas pipelines, ending offshore wind energy projects, and boosting fossil fuel production by easing restrictions on drilling on federal lands. He has also expressed intentions to withdraw the US from the Paris climate agreement and to support nuclear energy production.
Despite these challenges, analysts predict that the boom in renewable energy in the US is unlikely to be dramatically slowed. The Inflation Reduction Act passed during the outgoing administration, is expected to inject $1 trillion of spending into green energy, with estimates that 85% of the money has gone to districts that elected Republicans. This financial support, along with existing opposition to the curtailment of renewable energy, suggests that the long-term trajectory of the energy transition remains uncertain but potentially resilient.
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Trump’s Energy Policy and the Role of Elon Musk
In an interview with CNBC on November 13, Will Rhind, CEO of GraniteShares, discussed the potential implications of a Trump presidency on renewable energy such as wind and solar. Rhind noted that the playbook on energy policy was already seen in the previous Trump administration. The Trump administration has historically been more supportive of fossil fuels and less focused on renewable energy. Therefore, stocks and sectors favored by the Biden administration, such as solar and wind, might see a downturn.
Rhind suggested that the overall narrative may seem like it’s shifting back toward traditional energy sources. However, Elon Musk seems to be playing an integral role in the Trump administration, and he has been a proponent of climate policies, with his electric vehicle (EV) industry and other businesses, which suggests that energy transition policies may not be as impactful as some might expect today.
While the outcome of the US election and the anticipated policies of the new administration pose short-term challenges to renewable energy, the long-term outlook remains cautiously optimistic. With that in context, let’s take a look at the 10 best wind power and solar stocks to invest in now.
A rooftop view of a busy city skyline with solar energy panels and wind turbines illuminating the skyline.
Our Methodology
To compile our list of the 10 best wind power and solar stocks to invest in now, we used clean energy ETFs plus online rankings to compile an initial list of 20 wind and solar energy stocks. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Wind Power and Solar Stocks To Invest In Now
10. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
Number of Hedge Fund Holders: 27
Shoals Technologies Group, Inc. (NASDAQ:SHLS) is a leading provider of electrical balance of systems (EBOS) solutions for utility-scale solar and wind energy projects. The company’s products streamline solar installations and improve system performance for utility-scale and commercial clients. Moreover, these components help reduce costs and accelerate the deployment of solar power projects worldwide.
Shoals Technologies Group, Inc. (NASDAQ:SHLS) is investing in wind energy and energy storage solutions, including the development of recombiners and disconnects for battery energy storage systems. The company believes that these products can play a crucial role in the growing energy storage market, which is expected to more than double in size by 2027. Furthermore, Shoals Technologies Group, Inc. (NASDAQ:SHLS) is diversifying into new markets, including the commercial and industrial (C&I) sector, and the company has built an experienced commercial and product development team to focus on this market. It has already begun shipping product to C&I customers.
On November 22, two US congressmen proposed changes to the 45X advanced manufacturing production tax credit under the Inflation Reduction Act (IRA). The congressmen raised concern that foreign companies are benefiting from the tax incentives by establishing manufacturing facilities in the United States, potentially at the expense of domestic firms. The proposed changes aim to restrict these tax credits to US-based companies only. If the tax credit is revised to favor domestic manufacturers, Shoals Technologies Group, Inc. (NASDAQ:SHLS) could experience significant benefits.
9. Clearway Energy Inc. (NYSE:CWEN)
Number of Hedge Fund Holders: 29
Clearway Energy Inc. (NYSE:CWEN) is a leading renewable energy developer that’s focused on utility-scale wind and solar power projects. The company operates a large portfolio of clean energy assets and supplies electricity to utilities and corporate clients.
Clearway Energy Inc. (NYSE:CWEN) has a strong emphasis on solar and wind power, with a focus on developing and acquiring new projects in these areas. On November 25, the company announced its agreement to acquire the Tuolumne wind project, a 137 MW facility in Washington state, from Turlock Irrigation District. The project will operate under a new 15-year power purchase agreement with Turlock Irrigation District, extending through 2040. As part of the deal, the company also secured an option for a potential future repowering of the project.
Clearway Energy Inc. (NYSE:CWEN) plans to invest $70 million to $75 million in total long-term corporate capital for the acquisition. Based on the anticipated financing terms, the project is expected to contribute approximately $9 million in annual levered asset CAFD (Cash Available for Distribution) on average over five years starting in 2026. In addition to this investment, Clearway Energy Inc. (NYSE:CWEN) is also exploring opportunities in battery storage and hybridization, which will enable it to optimize its renewable energy output and improve its competitiveness in the market.
8. Nextracker Inc. (NASDAQ:NXT)
Number of Hedge Fund Holders: 32
Nextracker Inc. (NASDAQ:NXT) is a leading provider of solar tracking systems that track the movement of the sun and optimize the alignment of solar panels accordingly to enhance energy output. These trackers enable higher efficiency for large-scale solar farms. The company’s clients include utility-scale solar developers and project owners globally.
Nextracker Inc. (NASDAQ:NXT) is focusing on expanding its product offerings and improving its manufacturing capabilities. The company has recently introduced new products, such as the NX Horizon, NXTR 1.5, and NX Horizon Low Carbon Tracker, which have been successfully deployed in the field. Additionally, Nextracker Inc. (NASDAQ:NXT) has accelerated the availability of its 100% domestically manufactured trackers. This capability is expected to provide significant benefits to US customers by enabling them to capture a 10% bonus investment tax credit.
Moreover, Nextracker Inc. (NASDAQ:NXT) is investing in research and development to improve the efficiency and reliability of its products and expanding its business through strategic acquisitions and partnerships. The company has also established three global design facilities, including a new center in Hyderabad, India, which will enable the development of localized products for regional needs. Furthermore, Nextracker Inc. (NASDAQ:NXT) has closed two Foundation business acquisitions, which are expected to be successfully integrated by the end of the fiscal year. The company has also debuted its NX Foundation Solutions business, which will enable quicker, safer, and more efficient solar project development.
7. Array Technologies, Inc. (NASDAQ:ARRY)
Number of Hedge Fund Holders: 36
Array Technologies, Inc. (NASDAQ:ARRY) is a manufacturer of solar tracking systems, primarily serving utility-scale solar projects. The company collaborates with large-scale developers and utilities and has established itself as a trusted partner for solar developers around the world.
Array Technologies, Inc. (NASDAQ:ARRY) is focused on expanding its presence in international markets. The company has seen success in Brazil, and is now targeting growth in Europe, where management is confident that its targeted customer activities will support growth in the coming quarters. Array Technologies, Inc. (NASDAQ:ARRY) has also developed its SmarTrack software platform, which uses on-site snow sensors to move rows to high tilt to dump any accumulated snow. By investing in these types of solutions, Array Technologies, Inc. (NASDAQ:ARRY) is also positioning itself to help insurance companies, by safeguarding utility-scale solar investments, which could drive significant revenue from the European market.
Array Technologies, Inc. (NASDAQ:ARRY) is also investing in product innovation, with a focus on developing solutions that can help mitigate the risks associated with extreme weather events. The company’s recently introduced 77-degree tracker provides protection from hail and wind.
6. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 38
Enphase Energy, Inc. (NASDAQ:ENPH) is a leading global energy technology company that designs, manufactures, and sells home energy solutions, including solar microinverters, home energy storage systems, and energy management software. The company caters to residential and commercial clients and provides solutions for solar power generation, storage, and monitoring. Enphase Energy, Inc. (NASDAQ:ENPH) is known for its user-friendly, high-performance solar technology.
Enphase Energy, Inc. (NASDAQ:ENPH) is focused on developing innovative products that meet the evolving needs of homeowners and installers. The company is also expanding its energy storage offerings, including its IQ Battery, which provides homeowners with a reliable and cost-effective way to store excess energy generated by their solar panels. The company is also piloting its fourth-generation battery, which is expected to reduce installation costs and provide even greater value to homeowners.
Enphase Energy, Inc. (NASDAQ:ENPH) is investing heavily in research and development, with a focus on emerging technologies such as Gallium Nitride (GaN) and artificial intelligence (AI). The company’s IQ9 microinverter, which is powered by GaN technology, is expected to offer even higher power density and efficiency than its IQ8 series. Additionally, Enphase Energy, Inc. (NASDAQ:ENPH) is leveraging AI to develop advanced energy management algorithms that can optimize energy usage and reduce energy waste in homes.
5. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 43
Sunrun Inc. (NASDAQ:RUN) is a leading provider of residential solar energy solutions, offering solar installations, battery storage, and energy services. The company specializes in customized solar systems for homeowners and has over 1 million customers. Sunrun Inc. (NASDAQ:RUN) also offers products on leasing and financing options.
Sunrun Inc. (NASDAQ:RUN) is expanding its presence in new markets, including the new homes business, where it is working with 9 of the top 10 new home builders in California and over half of the top 20 home builders in the country. The company has signed a multi-year exclusive agreement with Toll Brothers in California and expects its new home business to grow at least 50% over the next year. Sunrun Inc. (NASDAQ:RUN) is also exploring new products and services, including grid services, which have the potential to generate significant value for the company. The company has 16 grid service programs active across the country, with over 20,000 storage systems participating, and is working with utilities and other partners to develop new programs and services.
Sunrun Inc. (NASDAQ:RUN) is also focused on reducing its debt and improving its balance sheet, with a strong cash position and no near-term corporate debt maturities. The company is committed to allocating excess unrestricted cash to reduce parent recourse debt and driving significant shareholder value through its capital allocation strategy.
4. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 59
First Solar, Inc. (NASDAQ:FSLR) is a global leader and pioneer in the development and manufacturing of thin photovoltaic (PV) solar energy solutions. The company focuses on utility-scale solar power plants and providing energy solutions to utilities and large corporations. The company is headquartered in Tempe, Arizona, and has a global presence with manufacturing facilities in the United States, Malaysia, and Vietnam.
On November 30, Reuters reported that the US Commerce Department announced a preliminary decision to impose tariffs ranging between 21.31% to 271.2% on solar panel imports from Malaysia, Cambodia, Vietnam, and Thailand. Major companies like Jinko Solar and Trina Solar will be affected whereas US manufacturers such as First Solar, Inc. (NASDAQ:FSLR), who face competition from cheap imports will benefit from these tariffs. The tariffs were sought by the American Alliance for Solar Manufacturing Trade Committee.
With the imposition of tariffs, US solar manufacturers are likely to see an increase in demand for their products, which could lead to an increase in production and revenue for companies such as First Solar, Inc. (NASDAQ:FSLR). The final determinations on the tariffs are expected to be made on April 18, 2025, with the International Trade Administration set to finalize its determinations on June 2, 2025.
First Solar, Inc. (NASDAQ:FSLR) is focused on advancing solar technology to improve efficiency and reduce costs. The company is launching its CuRe (Copper Replacement) technology, which is expected to improve module efficiency and reduce material costs. Additionally, First Solar, Inc. (NASDAQ:FSLR) is developing perovskite solar cells, a new technology that has the potential to further increase efficiency and reduce costs. The company’s investment in research and development is expected to drive innovation and growth in the solar industry.
3. NextEra Energy Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 69
NextEra Energy Inc. (NYSE:NEE) is a global leader in renewable energy, specializing in wind and solar power generation. The company operates through its subsidiaries, including Florida Power & Light and NextEra Energy Resources. NextEra Energy Inc. (NYSE:NEE) is recognized for its massive investments in clean energy infrastructure and commitment to a sustainable future.
NextEra Energy Inc.’s (NYSE:NEE) experience in developing and operating large-scale renewable energy projects makes it a leader in the industry. The company is investing heavily in the development of new solar and wind projects. The company’s wind repowering program has expanded to approximately 1.6 gigawatts of wind projects owned by NextEra Energy Partners through 2026. NextEra Energy Inc. (NYSE:NEE) is also investing in the development of new solar projects, with a focus on low-cost solar and battery storage.
NextEra Energy Inc. (NYSE:NEE) is capitalizing on the growing demand for renewable energy by expanding its solar and wind offerings. The company added approximately 3 gigawatts to its backlog in Q3, bringing its total backlog to approximately 11 gigawatts. NextEra Energy Inc. (NYSE:NEE) has also announced incremental framework agreements with two Fortune 50 customers for the potential development of renewables and storage projects, totaling up to 10.5 gigawatts till 2030.
2. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 78
Constellation Energy Corporation (NASDAQ:CEG) is a prominent energy company and a major provider of renewable energy solutions, including solar and wind power. The company serves a wide range of clients, from residential to commercial and industrial sectors. Constellation Energy Corporation (NASDAQ:CEG) has over 23,000 megawatts of generating capacity across nuclear, solar, wind, and hydroelectric power plants.
Constellation Energy Corporation (NASDAQ:CEG) is actively growing its renewable energy portfolio, with a focus on solar and wind energy. The company has set an ambitious target to achieve 100% carbon-free electricity by 2040. Constellation Energy Corporation (NASDAQ:CEG) is also leveraging its expertise in renewable energy to provide innovative solutions that enable data centers to power their operations with clean and reliable energy. Constellation Energy Corporation’s (NASDAQ:CEG) offsite renewables product (CORe) is high in demand and allows location-specific renewable energy purchases and renewable energy certificates (RECs) that are matched to their specific energy usage.
Constellation Energy Corporation (NASDAQ:CEG) is also partnering with other companies and organizations to advance the development of renewable energy and energy storage solutions that will enable the use of renewable energy. These partnerships and collaborations are helping the company to drive innovation and growth in the renewable energy sector.
1. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 89
GE Vernova Inc. (NYSE:GEV) is a leading energy equipment manufacturing and services company that manufactures electrical equipment, natural gas turbines, hydropower turbines, and high-voltage electrical transmission products. The company’s products for renewable energy technologies include onshore and offshore wind turbines and solar power solutions. GE Vernova Inc.’s (NYSE:GEV) technology is utilized in roughly 55,000 wind turbines and 7,000 gas turbines spanning over 100 countries.
GE Vernova Inc. (NYSE:GEV) has announced a temporary halt on new offshore wind turbine projects due to unfavorable market conditions. The company plans to focus on executing its existing backlog of $3 billion which is expected to be completed within the next two years. While the offshore business faces challenges, the company is optimistic about the growth prospects of its onshore wind segment, which has seen significant increases in orders. To improve profitability, the company is implementing cost-saving measures and remixing its backlog. Management expects the onshore wind business to deliver high single-digit EBITDA margins on flat revenue this year, with potential for margin accretion as revenue grows as early as 2026.
GE Vernova Inc. (NYSE:GEV) is seeing significant growth in demand for grid-related investments to improve reliability and connect more zero-carbon power sources. The company’s Electrification segment is benefiting from this trend, with revenue growth of 24% in Q3. The company is also investing in its capacity to support the growing demand for electrification products, including high-voltage direct current (HVDC) systems, transformers, and switchgears, which are essential for connecting new generation sources to the grid. GE Vernova Inc. (NYSE:GEV) is also investing in its power conversion capabilities, which are critical for the integration of solar and wind energy into the grid.
In their Q3 investor letter Carillon Tower Advisers, an investment management company, said the following regarding GE Vernova Inc. (NYSE:GEV):
“GE Vernova Inc. (NYSE:GEV) is a global leader in the electric power industry that was recently spun out of a much larger industrial conglomerate. The company’s shares have performed well since, primarily as a result of power demand growth forecasts that continue to rise. We believe GE Vernova is distinctly positioned to capitalize on this attractive trend across its various products and services, but most notably within its large-scale gas turbine equipment and related services, as well as in its high-voltage electrical transmission products. The company is seeing a notable uptick in demand and is booking orders at profitability levels in excess of prior investor expectations.”
While we acknowledge the potential of GE Vernova Inc. (NYSE:GEV) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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