11 Best Alternative Energy Stocks to Buy Now

8. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Funds Holders: 39

Enphase Energy, Inc. (NASDAQ:ENPH) is one of the top global companies in microinverter-based solar and batter solutions, catering to residential and commercial demand globally. The company designs and manufactures advanced home energy systems, including IQ Microinverters, IQ Batteries, and energy management software, optimizing solar power usage and storage for homeowners.

Enphase Energy, Inc. (NASDAQ:ENPH) reported its financials for Q4 ended December 31, 2024, posting a revenue of $382.7 million, shipping around 2 million microinverters and 152 megawatt-hours of batteries. It reported the generation of $159 million in free cash flow with a robust margin of 53% on a non-GAAP basis.

These figures were driven by cost efficiency and strong demand for its U.S.-made microinverters. Enphase Energy, Inc. (NASDAQ:ENPH) shipped around 1.7 million microinverters from its U.S. facility in Q4 and brought new high-content domestic microinverters, eligible for investment tax credits, enhancing its commitment to expanding domestic production.

Moreover, the company announced a key move on January 27, 2025, that its Enphase Energy System has now been integrated into Octopus Energy’s smart tariffs, inclusive of “Intelligent Octopus Flux.” This partnership has enabled its U.K. customers with Enphase solar and battery systems to enhance energy usage and sell off excess electricity at peak prices.

Enphase Energy, Inc. (NASDAQ:ENPH) is benefiting from the increasing battery adoption and virtual power plant (VPP) programs in the U.S., setting it up for long-term growth. Furthermore, the company is continuing to increase its presence across international markets. Although European revenues saw a decline in Q4 under market challenges, the company is actively bringing new products, such as IQ EV chargers and IQ Battery 5P.

Conclusively, with its strong fundamentals and strategic partnerships, Enphase Energy, Inc. (NASDAQ:ENPH) has the prospects of further growing its share price. Under its continuing expansion in distributed energy solutions and integration with smart energy platforms, the company is a top choice among the Best Clean Energy Stocks.