In this article, we will discuss the most profitable renewable energy stocks to buy now.
In an interview with CNBC on November 9, John Berger, CEO of Sunnova stated that the market is misunderstanding the effects of a Trump administration on solar. Berger addressed speculation about the potential scaling back of the IRA policies under the Trump administration noting that the IRA will not change much, as it has been successful in promoting domestic manufacturing of solar panels, batteries, and electric vehicles. In fact, 85% of the capital investments in these areas are in Republican districts.
Berger also highlighted the success of the IRA in incentivizing domestic manufacturing, citing the tax credit for manufacturing and the domestic content requirement in the investment tax credit. He emphasized that both parties agree on the importance of domestic manufacturing.
Renewable Energy Under Trump’s Agenda
In another interview with CNBC on November 14, Bill Perkins, President and CEO at Skylar Capital Management, shared his insights on the energy agenda under President Trump’s new administration. Perkins emphasized that the incoming administration is “pro-energy of all kinds,” whether it’s nuclear, renewable, natural gas, or any other type of energy. He believes that the administration will aim to remove delays, bottlenecks, and frustration points that hinder energy production in the United States.
Perkins noted that the markets have already reacted to the change in administration, with renewable energy companies seeing their stocks relatively lower compared to oil and gas stocks. Perkins suggested that people are worried about the incentives, such as the Inflation Reduction Act, going away. However, he believes that the first thing the administration will focus on is addressing the permitting times, which are currently too long. He pointed out that there is a wing within the United States Environmental Protection Agency (EPA) and the government that is anti-development and is hurting renewable energy production.
We also discussed the US government’s incentives for the nuclear energy sector in our article about the 10 Best Nuclear Energy Stocks To Invest In Now, here’s an excerpt from it:
“To support nuclear expansion, the U.S. government has bolstered the sector with tax credits, loans, and research funding. The Inflation Reduction Act’s (IRA) production and investment tax credits for new reactors and existing plants are expected to play a pivotal role.
In 2024, Congress provided a $2.72 billion allocation for developing a domestic nuclear fuel supply chain and passed the ADVANCE Act to improve licensing process efficiency. Congress also allocated $900 million specifically for Gen III+ Small modular reactors (SMRs).
Small modular reactors (SMRs) are an alternative to traditional nuclear plants and offer a promising new opportunity for nuclear energy. SMRs are a type of nuclear reactor with a power capacity of up to 300 MW(e) per unit. They are manufactured off-site and shipped to the location for installation, making them more cost-effective and suitable for a wider range of areas.”
Read Also: 10 Best Nuclear Energy Stocks To Invest In Now and 10 Oversold Energy Stocks To Buy Now.
As the energy landscape continues to evolve, investors are closely watching the impact of the new administration on the renewable energy sector. With the global demand for clean energy on the rise and innovation in renewable technologies driving growth, the sector’s long-term outlook remains compelling. With that in context, let’s take a look at the 10 most profitable renewable energy stocks now.
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Our Methodology
To compile our list of the 10 most profitable renewable energy stocks now, we scanned clean energy ETFs plus online rankings to compile an initial list of 20 renewable energy stocks. From that list, we narrowed our choices to the 10 stocks that analysts see the most upside to. The list is sorted in ascending order of analysts’ average upside potential, as of November 16. The list is sorted in ascending order of their average upside potential as of November 16.
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 Most Profitable Renewable Energy Stocks Now
10. The Southern Company (NYSE:SO)
Upside Potential: 4.86%
5-Year Net Income CAGR: 0.63%
TTM Net Income: $4.72 Billion
The Southern Company (NYSE:SO), headquartered in Atlanta, Georgia, is a wholesale energy provider that offers services to 9 million customers in 15 states in the United States. The company has made substantial investments in renewable energy and expects to have over 20,000 MW of renewable and storage resources by 2030. Georgia Power, the largest electric subsidiary of The Southern Company (NYSE:SO) serves approximately 2.7 million customers and plans to procure an additional 4,000 MW of renewable energy and 1,000 MW of battery storage resources by 2035.
On November 8, Georgia Power announced the commercial operation of the company’s first “grid-connected” battery energy storage system (BESS), the 65 MW Mossy Branch Battery Facility. Located in Talbot County, the facility is capable of storing energy that can be deployed back to the grid over a four-hour period. The facility is expected to improve the efficiency of renewable energy by storing excess energy produced during periods of low demand, such as during the day, for use during periods of high demand.
In addition to the Mossy Branch facility, Georgia Power is developing the 265 MW McGrau Ford Phase I BESS project in Cherokee County, which is expected to enter service by the end of 2026. Furthermore, Georgia Power plans to procure an additional 1,000 MW of new battery energy storage through competitive bidding processes in the coming years.
The company also announced the locations of 500 MW of new BESS projects that will be owned by Georgia Power, including projects located adjacent to Robins Air Force Base, Moody Air Force Base, and the former Plant Hammond site.
9. Chevron Corporation (NYSE:CVX)
Upside Potential: 5.61%
5-Year Net Income CAGR: 4.69%
TTM Net Income: $16.68 Billion
Chevron Corporation (NYSE:CVX) traditionally known for its oil and gas operations, is significantly expanding its renewable energy portfolio. The company is investing in hydrogen, carbon capture, and renewable natural gas projects to diversify its energy mix.
Chevron Corporation (NYSE:CVX) also offers renewable diesel blends with renewable content ranging from 6% to 20% at its California terminals. These blends are derived from sustainable materials such as vegetable oils and animal fats. In 2023, Chevron Corporation’s (NYSE:CVX) Chevron Renewable Energy Group produced 408 million gallons of biodiesel and renewable diesel.
On October 15, Chevron Renewable Energy Group announced an investment in Terviva, an agricultural innovation company that specializes in growing and harvesting pongamia, a type of tree that can be used as a feedstock for biofuel production. This strategic partnership aims to scale up Terviva’s Pongamia-growing operations and increase the availability of pongamia as a lower-carbon feedstock for the biofuel industry.
Terviva’s pongamia trees have been developed over 15 years of research trials and have shown promising results, producing three or more metric tons of beans per acre with high oil content. The oil extracted from these beans can be converted into biodiesel, renewable diesel, or sustainable aviation fuel, offering a lower-carbon alternative to traditional fossil fuels.
Pongamia is a regenerative tree crop that has a positive impact on the environment. It is resilient and can thrive with erratic water access and can tolerate extreme heat. Additionally, pongamia’s nitrogen-fixing properties enrich soils, reducing the need for synthetic fertilizers. The partnership between Chevron Renewable Energy Group and Terviva is expected to drive the growth of the biofuel industry by increasing the availability of lower-carbon feedstocks.
8. Vistra Corp. (NYSE:VST)
Upside Potential: 6.01%
5-Year Net Income CAGR: 31.98%
TTM Net Income: $2.03 Billion
Vistra Corp. (NYSE:VST) is a vertically integrated energy company based in Texas that operates a diverse energy portfolio. The company provides electricity and natural gas to residential, commercial, and industrial customers, The company also manages battery energy storage facilities.
On September 11, Vistra Corp. (NYSE:VST) announced a new initiative in collaboration with Sunrun. The initiative, named the TXU Energy & Sunrun Battery Rewards program, aims to create a virtual power plant by connecting solar-powered residential batteries. This virtual power plant will pool stored energy from these batteries to be discharged back to the grid during periods of peak demand.
The program is structured to provide benefits to both Vistra Corp.’s (NYSE:VST) customers and the overall grid. Homeowners participating in the program will earn financial incentives to maintain control of their systems during power outages or severe weather. This ensures a reliable energy source when it’s most needed. Additionally, these customers can continue taking advantage of TXU Energy’s solar buyback plans, which provide credits for excess electricity added to the grid.
The partnership between Vistra Corp. (NYSE:VST) and Sunrun represents a significant advancement in the energy sector. Sunrun has over 116,000 installed systems and a strong track record in incentivizing customers to support local power grids.
This program helps Vistra Corp. (NYSE:VST) to manage costs during peak demand by leveraging residential solar batteries instead of relying on more expensive energy-generation methods like natural gas or coal. This approach not only supports sustainability but also reduces overall operational costs for the company.
7. Exelon Corporation (NASDAQ:EXC)
Upside Potential: 10.53%
5-Year Net Income CAGR: 1.01%
TTM Net Income: $2.43 Billion
Exelon Corporation (NASDAQ:EXC) is one of the largest utility companies in the United States, serving more than 10.5 million customers through six fully regulated transmission and distribution utilities companies; Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco).
On September 12, Exelon Corporation (NASDAQ:EXC) participated in the Congressional Grid Innovation Expo, where the company showcased innovative projects and emerging technologies that are being used to create a more resilient and reliable electric grid of the future. Exelon Corporation (NASDAQ:EXC) showcased two key innovative projects that are optimizing grid operations with electric vehicles (EVs) and delivering technological solutions that are powering the future.
The first project, Vehicle-to-Grid (V2G) Technology involves retrofitting electric vehicles with bidirectional modular chargers, which will transform them into mobile inverters that can be registered as Distributed Energy Resources (DERs).
The second project, the EV Smart Charge Management Program is designed to prepare for the significant increase in EVs in Exelon Corporation’s (NASDAQ:EXC) Maryland Utilities are expecting nearly two million EVs to demand more electricity over the next decade and present potential challenges for the existing grid infrastructure. To address these challenges, Exelon launched its Smart Charge Management (SCM) pilot program, which allows the company to directly manage EV charging for participating residential customers. The program uses advanced load-balancing algorithms to create customer-centric charging schedules that align with grid needs and mitigate peak demand strain.
The SCM program has achieved a 92% compliance rate among enrolled customers, with 98% of EV charging now occurring during off-peak hours. Exelon Corporation (NASDAQ:EXC) has also exceeded its initial enrollment targets, and BGE has approval from the Maryland Public Service Commission to expand SCM into a full-scale program starting in 2025.
6. Duke Energy Corporation (NYSE:DUK)
Upside Potential: 10.62%
5-Year Net Income CAGR: 4.09%
TTM Net Income: $4.32 Billion
Duke Energy Corporation (NYSE:DUK) based in North Carolina, is one of the largest utilities in the US. The company provides electricity to approximately 8.4 million customers and manages around 54,800 megawatts of energy capacity. Duke Energy Corporation (NYSE:DUK) is heavily investing in wind, solar, and battery storage to transition to renewable energy.
On October 22, Duke Energy Corporation (NYSE:DUK) announced the expansion of its Green Source Advantage Choice (GSA-C) program in North Carolina, which allows large business customers to support renewable energy development by supplementing their power usage with 100% renewable, carbon-free generation. This program builds upon the success of the company’s legacy Green Source Advantage program, which has helped large businesses make decarbonization a long-term part of their business plans.
The GSA-C program provides large business customers with a path towards having 24/7 clean energy and enables them to count the renewable energy generated to satisfy their sustainability goals. The program has been expanded to offer up to 5,000 megawatts (MW) of capacity, which is more than five times the capacity available under the original program. This expanded capacity will allow more businesses to participate and support renewable energy development.
Duke Energy Corporation (NYSE:DUK) is offering several options for customers to participate in the GSA-C program. The “Bring Your Own Purchased Power Agreement” (PPA) option allows customers to bring their own renewable energy supplier, while the “Resource Acceleration Option” (RAO) offers an additional 300 MW of capacity every two years. A new “easy option” also allows customers to collaborate directly with Duke Energy Corporation (NYSE:DUK) on new facilities that will be coming online in the future.
Later this year, Duke Energy Corporation (NYSE:DUK) plans to file the Clean Energy Connection program with the North Carolina Utilities Commission, which will offer a subscription-based community solar program for customers to meet their sustainability goals. Similar programs have also been approved and are underway in South Carolina.
5. DTE Energy Company (NYSE:DTE)
Upside Potential: 13.36%
5-Year Net Income CAGR: 6.97%
TTM Net Income: $1.53 Billion
DTE Energy Company (NYSE:DTE) is Michigan’s largest utility provider involved in the development and management of energy-related businesses. The company serves 2.3 million customers in Southeast Michigan with its electric segment with an 11,084-megawatt system capacity. DTE Energy Company (NYSE:DTE) generates wind and solar energy to power more than 750,000 homes and plans to power 5.5 million homes with renewable energy by 2042.
On October 25, DTE Energy Company (NYSE:DTE) announced that its largest solar park, Sauk Solar, is now operational. Located in central Michigan’s Branch County, the solar park has a capacity of 150 megawatts, which is enough to power approximately 40,000 homes.
Sauk Solar is a significant addition to the company’s renewable energy portfolio, being more than three times the size of its second-largest solar park in Lapeer. The park features nearly 347,000 solar panels and is the first of six new solar parks to come online as part of DTE Energy Company’s (NYSE:DTE) CleanVision MIGreenPower program.
The CleanVision MIGreenPower program allows customers to voluntarily enroll and support the development of new renewable energy projects, such as solar parks. Sauk Solar and the other five parks under construction are funded by these enrolled customers.
4. National Grid plc (NYSE:NGG)
Upside Potential: 13.73%
5-Year Net Income CAGR: 4.20%
TTM Net Income: $2.29 Billion
National Grid plc (NYSE:NGG) is one of the largest energy companies in the United States, serving more than 20 million people in New York and Massachusetts regions. The company is transforming its electricity and natural gas networks with smarter, cleaner, and more resilient energy solutions and taking necessary steps towards achieving net zero by 2050.
National Grid plc’s (NYSE:NGG) National Grid Ventures (NGV) is at the forefront of the energy transition. The company operates across the UK, Europe, and the US, and focuses on developing, operating, and investing in large-scale renewable energy infrastructure. National Grid Ventures (NGV) operates wind and solar power generation assets, battery storage, and the Grain LNG Terminal in the United Kingdom.
National Grid plc’s (NYSE:NGG) National Grid Renewables develops, constructs, and operates renewable energy projects in the United States. National Grid Renewables operates 1.7 GW of renewable energy assets and is developing and constructing over 30GW of assets.
On November 14, National Grid Renewables announced the start of onsite construction at its 100 MW Apple River Solar Project in Polk County, Wisconsin. This project marks a significant milestone in the company’s efforts to increase its renewable energy portfolio. The project will supply power to Xcel Energy to serve its customers across the Upper Midwest.
3. NextEra Energy, Inc. (NYSE:NEE)
Upside Potential: 14.38%
5-Year Net Income CAGR: 16.67%
TTM Net Income: $6.95 Billion
NextEra Energy, Inc. (NYSE:NEE) operates the NextEra Energy Resources (NEER), a major global producer of renewable energy and a pioneer in battery storage solutions. NEER focuses on the development, construction, and operation of long-term energy assets, primarily across the U.S. and Canada. The company’s portfolio includes approximately 34 GW of renewable energy. Additionally, NEER has 1 GW of battery storage capacity distributed across 16 U.S. states.
In Q3, NextEra Energy, Inc. (NYSE:NEE) showcased robust growth and resilience across its operations, reporting an approximately 10% year-over-year increase in adjusted earnings to $2.12 billion. The Energy Resources division achieved an 11% year-over-year increase in adjusted earnings. The company is also exploring the potential restart of Iowa’s Duane Arnold nuclear plant to meet rising demand from data centers.
During the Q3 earnings call, John Ketchum, Chairman, President, and CEO of NextEra Energy, Inc. (NYSE:NEE), highlighted that the Duane Arnold plant, a 601 MW boiling water reactor (BWR), is generally less complex and expensive to recommission compared to pressurized water reactors (PWRs). The company plans to execute the project cost-effectively and with minimal risk. Engineering assessments are underway, and the company is collaborating with the U.S. Nuclear Regulatory Commission (NRC) to evaluate the restart, driven by strong interest from data center customers.
2. Constellation Energy Corporation (NASDAQ:CEG)
Upside Potential: 23.75%
5-Year Net Income CAGR: 39.01%
TTM Net Income: $2.39 Billion
Constellation Energy Corporation (NASDAQ:CEG) is a leading energy company with an impressive clean energy portfolio consisting of over 23,000 megawatts of generating capacity, comprising nuclear, solar, wind, and hydro plants. Notably, nearly 90% of the company’s annual energy output comes from carbon-free sources and the company has set ambitions to produce 95% carbon-free electricity by 2030 and 100% by 2040.
Constellation Energy Corporation’s (NASDAQ:CEG) Antelope Valley Solar Ranch One in Los Angeles is one of the largest solar photovoltaic projects in the United States. The project generates 242 MW of energy, which is enough to power the equivalent of 75,000 average homes.
On November 4, Constellation Energy Corporation (NASDAQ:CEG) reported its financial results for Q3. The company reported a strong performance that exceeded analyst expectations and posted earnings of $2.74 per share. This marks the third time in the last four quarters that Constellation Energy Corporation (NASDAQ:CEG) has surpassed consensus EPS estimates and has consistently delivered strong financial results. The company’s revenue for the quarter was $6.55 billion which represents an increase from the year-ago revenue of $6.11 billion.
In Q3 Constellation Energy Corporation (NASDAQ:CEG) executed a 20-year power purchase agreement (PPA) with Microsoft to support the restart of the Three Mile Island Unit 1, renamed as the Crane Clean Energy Center. The restart of the plant is subject to regulatory approvals, but if successful, it will provide a significant boost to Constellation Energy Corporation’s (NASDAQ:CEG) clean energy portfolio.
1. Enphase Energy, Inc. (NASDAQ:ENPH)
Upside Potential: 65.12%
5-Year Net Income CAGR: 6.33%
TTM Net Income: $61.41 Million
Enphase Energy, Inc. (NASDAQ:ENPH) is a global leader in energy technology, focusing on solar microinverters, energy storage solutions, and energy management devices. The company is also known for its solar power and electric vehicle (EV) charging technology. Enphase Energy, Inc. (NASDAQ:ENPH) holds a leading position in the U.S. residential solar market and is expanding its presence in Europe and emerging markets across Asia. The company has shipped approximately 78 million microinverters and has installed over 4.5 million Enphase-based systems in more than 160 countries.
On November 13, Enphase Energy, Inc. (NASDAQ:ENPH) announced a safe harbor agreement with IGS Solar, a leading solar finance company. The agreement aims to expand the deployment of Enphase Energy, Inc.’s (NASDAQ:ENPH) IQ8 Microinverters, which are manufactured in the United States. This partnership will enable IGS Solar-financed leases to qualify for the domestic content bonus tax credit under the Inflation Reduction Act (IRA).
Through this agreement, top solar installation companies such as Venture Solar, Momentum Solar, and Ecohouse Solar will install IGS Solar-owned IQ8 Microinverters on IGS Solar-owned projects. This will help these projects qualify for the domestic content bonus tax credits. The partnership is expected to promote the use of American-made solar technology and support the growth of domestically manufactured clean energy in the US.
While we acknowledge the potential of Enphase Energy, Inc. (NASDAQ:ENPH) 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 ENPH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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