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14 Best Clean Energy Stocks to Invest In

In this article, we shall discuss the 14 best clean energy stocks to invest in. To skip our detailed analysis of the clean energy sector in 2022, go directly and see 5 Best Clean Energy Stocks to Invest In.

The economic activity during and after the pandemic triggered price spikes for multiple commodities. Russia’s invasion of Ukraine in February 2022 added to the inflation crisis, causing drastic increases in energy prices and massive supply-chain disruptions. However, according to the Global Energy Perspective 2022 by McKinsey, the transition to a lower-carbon energy system continues to gain pace, and the incoming years are projected to witness a rapidly changing clean energy landscape. Following the Inflation Reduction Act (IRA), a grand total of 64 countries have followed the U.S. and have legislated in an effort to accomplish decarbonization goals in the next couple of decades. The Inflation Reduction Act facilitates upcoming decarbonization technologies, including hydrogen and EVs. 

The Massachusetts Institute of Technology conducted an in-depth analysis into the future of the clean energy sector. It concluded that as the world combats the impending threat of climate change by facilitating the move towards a low-carbon future, companies which choose to compete within these transitional changes have the highest chances of profitability.

Hence, it is reasonable to expect clean energy to be the future of the utilities and power sectors. It is for this reason that hedge funds are investing heavily in clean energy stocks, some of the most prominent being NextEra Energy Inc. (NYSE:NEE), General Electric Co. (NYSE:GE), and Tesla Inc. (NASDAQ:TSLA). In this article, we shall look at 14 of the best clean energy stocks to invest in.

Our Methodology

We used Insider Monkey’s database of 895 hedge funds tracked as of the end of the second quarter and picked the top 14 clean energy stocks owned by these elite money managers.

Best Clean Energy Stocks To Invest In

14. Canadian Solar Inc. (NASDAQ:CSIQ)

Number of Hedge Fund Holdings: 13

Based in Ontario, Canadian Solar Inc. (NASDAQ:CSIQ) is a Canadian publicly traded company that specializes in the manufacture, production and sale of solar PV modules, and the operation of other large-scale projects. The company is a rapidly expanding solar energy powerhouse, which has over 75 GW of solar modules shipped per year. Furthermore, Canadian Solar Inc. (NASDAQ:CSIQ) production facilities manufacture ingots, solar cells, solar PV modules, solar power systems, and other solar products. Billionaire Ken Griffin is the largest shareholder in Canadian Solar Inc. (NASDAQ:CSIQ), having stakes worth $19.4 million as of the second quarter of 2022. In Q2 2022, the company beat estimates of $0.53 by $0.54, posting an EPS of $1.07.

13. Brookfield Renewable Partners L.P. (NYSE:BEP)

Number of Hedge Fund Holdings: 19

Headquartered in Toronto, Ontario, Brookfield Renewable Partners (NYSE:BEP) is a publicly traded limited partnership that owns and operates one of the world’s largest pure-play renewable power assets. Additionally, the company currently owns more than 230 hydroelectric plants, 110 wind farms, over 550 solar facilities, and four storage facilities with over 17,000MWs of installed capacity. As of September 26, Brookfield Renewable Partners (NYSE:BEP) has a total market cap of $22.35 billion. In the second quarter of 2022, the company posted a total revenue of $1.27 billion.

On August 8, JPMorgan analyst Mark Strouse raised the price target on Brookfield Renewable Partners (NYSE:BEP) to $43 from $41, maintaining an Overweight rating on the shares. The analyst regarded the Inflation Reduction Act as the greatest policy change in U.S. history, further accelerating growth in an inevitable global transition from fossil fuels to clean energy.

Here is what ClearBridge Investments had to say about Brookfield Renewable Partners (NYSE:BEP) in their Q1 2022 investor letter:

Brookfield Renewable (NYSE:BEP) is a pure-play renewables operator and developer headquartered in Canada, focused on international hydro, solar, wind and storage technology. As more private and public institutions announce ambitious carbon reduction initiatives, Brookfield Renewable’s (NYSE:BEP) globally diversified, multi- technology renewables business makes it an attractive partner. Brookfield’s (NYSE:BEP) development pipeline stands at 18,000 MWs, providing confidence the company can meet its targeted double- digit cash flow growth through to 2025. The market narrative around the energy transition and energy security, along with increasing fossil fuels prices which have driven greater focus on switching to renewables, helped Brookfield (NYSE:BEP) shares in the quarter.”

12. Stem Inc. (NYSE:STEM)

Number of Hedge Fund Holdings: 19

Based in San Francisco, California, Stem Inc. (NYSE:STEM) provides clean energy solutions and services, designed to maximize the economic, environmental, and resiliency value of energy assets and portfolios. The company provides turnkey services for front-of-meter and behind-the-meter storage products for businesses, developers, and utilities. 

On August 18, Morgan Stanley analyst Stephen Byrd raised the price target on Stem (NYSE:STEM) to $20 from $13, keeping an Equal Weight rating on the shares. The analyst boosted growth predictions for solar, wind, energy storage, and clean hydrogen. Furthermore, he also raised price targets on many clean tech stocks, due to the incentives provided by the IRA legislation. The bill is expected to accelerate the decarbonization of the U.S. economy, lead to increased localized manufacturing, and provide necessary support to catalyze decarbonization technologies that are expected to be commercially viable.

11. Clearway Energy Inc. (NYSE:CWEN)

Number of Hedge Fund Holdings: 21

Based in San Francisco, California, Clearway Energy (NYSE:CWEN) specializes in the development and operation of clean energy in the United States, with over 5GWs of wind, solar, and energy storage in operation. According to the company’s official website, Clearway Energy (NYSE:CWEN) operates and provides asset management services for more than 4.1GW of operating assets, and owns an extensive pipeline of renewable energy projects in development and construction.

Clearway Energy (NYSE:CWEN) recorded a remarkable performance on a variety of different financial metrics in Q2 2022. The company has garnered substantial capital to expand and add to its asset base, a move which will be bolstered by the recent sale of the company’s thermal business.

Here is what ClearBridge Investments had to say about Clearway Energy (NYSE:CWEN) in their Q4 2021 investor letter:

Clearway Energy primarily owns and operates contracted renewable generation assets. It also owns and operates conventional generation and thermal infrastructure assets. Clearway Energy’s share price continued to benefit from the completed sale of its thermal assets, which was above expectations, generating USD$1.3 billion in incremental proceeds. Additionally, there was optimism surrounding a stimulus bill passthrough which contains renewables subsidies.”

10. SunPower Corporation (NASDAQ:SPWR)

Number of Hedge Fund Holdings: 21

Based in San Jose, California, SunPower Corp. (NASDAQ:SPWR) is an American company which specializes in the production and development of photovoltaic solar energy generation systems and battery energy storage products. Hedge fund sentiment around the stock has remained consistent in Q1 and Q2 of 2022, with 21 hedge funds long SunPower Corp. (NASDAQ:SPWR) in both quarters. SunPower (NASDAQ:SPWR) reported impressive adjusted earnings of $1.07 per share in Q2 2022, completely in line with expectations.

On August 18, Morgan Stanley analyst Stephen Byrd raised the price target on SunPower Corp. (NASDAQ:SPWR) to $31 from $22, keeping an Equal Weight rating on the shares.

9. First Solar Inc. (NASDAQ:FSLR)

Number of Hedge Fund Holdings: 26

Based in Tempe, Arizona, First Solar Inc. (NASDAQ:FSLR) is an American company which specializes in the manufacture and production of solar panels, utility-scale PV power plants, and other services, like construction, maintenance, and end-of-life panel recycling.

On September 7, Goldman Sachs analyst Brian Lee upgraded the rating on First Solar Inc. (NASDAQ:FSLR) shares to Buy from Sell, conferring a price target of $172 on the shares. The analyst states that the company is best-positioned to capitalize on the tailwinds of the Inflation Reduction Act, as it is expected to be one of the most significant beneficiaries of manufacturing credits. The company is also perfectly leveraged to take advantage of demand tailwinds originating from macroeconomic transitions to clean energy. Lee also contends that he has a more positive outlook on First Solar’s (NASDAQ:FSLR) module gross margin recovery.

8. Plug Power Inc. (NASDAQ:PLUG)

Number of Hedge Fund Holdings: 26

Based in Latham, New York, Plug Power Inc. (NASDAQ:PLUG) is an American producer of hydrogen fuel cell systems. On August 25, Truist analyst Bronson Fleig reported that Plug Power (NASDAQ:PLUG) announced a commercial agreement with Amazon (NASDAQ:AMZN), under which the e-commerce mammoth and Plug Power (NASDAQ:PLUG) have agreed to the sale of liquid green hydrogen in 2025. According to the analyst, this announcement is a major breakthrough in supporting Plug Power’s (NASDAQ:PLUG) green H2 ecosystem strategy through further backstopping of substantial internal green H2 production. Fleig points out that the transaction will aid the company accomplish its $3 billion revenue target for 2025. He expressed positive share support near-term on the notion of industry acceptance of green H2, keeping a Buy rating and $32 price target on Plug Power (NASDAQ:PLUG) shares.

Global supply of lithium is rapidly running short and since HFC vehicles have similar range when compared to petrol-powered vehicles and are able to refuel just as quickly, the latter will eventually fizzle out. Plug Power (NASDAQ:PLUG) and other HFC manufacturers are set to benefit immensely from the subsidies offered by the Inflation Reduction Act and the Hydrogen for Trucks Act.

7. The Southern Company (NYSE:SO)

Number of Hedge Fund Holdings: 29

Based in Atlanta, Georgia, Southern Company (NYSE:SO) is an American gas and electric utility holding company which operates in southern regions of the United States. The company’s subsidiaries operate hydroelectric, gas, coal, and nuclear generation sources which generate approximately 200 TWh of electricity. Renewable hydroelectric power represents 6% of Southern Company’s (NYSE:SO) generation, with coal-based generation dropping significantly since 2009. The company has committed to complete decarbonization by 2050. It has a dividend yield of 3.92%, paying a quarterly dividend of $0.68 per share of common stock.

On September 14, Argus analyst Marie Ferguson raised the price target on Southern Company (NYSE:SO) to $87 from $83, keeping a Buy rating on the shares. Ferguson ascertains that the company offers an efficiently-operated base of regulated utility assets, and a strong presence in U.S. states with favorable population trends. The analyst further goes on to contend that the company’s new Vogtle nuclear plants will propel Southern Co. (NYSE:SO) to long-term growth and push it to be one of the best clean energy stocks to invest in. He states that as Southern (NYSE:SO) decreases the use of coal-fired plants in favor of renewables, the company’s propensity for growth looks extremely promising. Hedge fund sentiment around Southern Company (NYSE:SO) has increased in Q2 2022, with 29 funds long the stock, compared to 28 in the previous quarter.

6. Dominion Energy Inc. (NYSE:D)

Number of Hedge Fund Holdings: 30

Based in Richmond, Virginia, Dominion Energy (NYSE:D) is a North American power and energy company which supplies electricity to parts of Virginia, North Carolina, and South Carolina. It also provides natural gas to Utah, West Virginia, Ohio, Pennsylvania, North Carolina, South Carolina, and Georgia.

On August 18, Barclays analyst Eric Beaumont lowered the price target on Dominion Energy (NYSE:D) to $86 from $93, keeping an Equal Weight rating on the shares. At the end of 2021, the company reported 30.2GWs of electricity generating capacity, more than 10,000 miles of electric transmission lines, 78,000 miles of electric distribution lines, and 95,700 miles of gas distribution mains. With a fast-moving transition to net-zero carbon emissions, the company is also well-positioned to benefit from the recent Inflation Reduction Act, making it one of the best clean energy stocks for investment.

Click to continue reading and see 5 Best Clean Energy Stocks to Invest In

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Disclosure: none. 14 Best Clean Energy Stocks to Invest In is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

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AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

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Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…