12 Best Wind Power and Solar Stocks To Buy

Published February 22, 2024 at 11:20 am EST Updated September 7, 2026 at 12:17 pm EDT

In this article, we will take a detailed look at the 12 Best Wind Power and Solar Stocks To Buy.

Renewable energy stocks suffered in 2023 amid rising interest rates and lack of incentives for the residential solar companies. The solar energy sector has a high exposure to interest rates. As the Federal Reserve began raising interest rates, solar companies began to waver. Restructuring, layoffs, cost reduction plans and bankruptcies marred the renewable energy space in 2023. But analysts believe the industry can see a turnaround in 2024.

Can Solar Stocks Rebound in 2024?

Earlier this month RBC said in a report that the solar energy industry is “near an inflection point.” RBC said the industry will see a “positive rate of change.” While RBC’s analyst Christopher Dendrinos said headwinds for the industry are expected to remain in the short-term, long-term growth catalysts for solar stocks include support from public policy, an expected decline in costs and rate cuts.

The broader solar industry recently saw an uptick after Enphase Energy Inc (NASDAQ:ENPH) management during its fourth quarter earnings call said the company is expecting a turnaround to begin in the second quarter. Enphase Energy Inc CEO Badri Kothandaraman said the first quarter of 2024 could be the “bottom” quarter as demand in Europe is showing signs of recovery. Enphase Energy Inc also expects “non-California” states to rebound “quickly.”

As the world focused its attention on inflation, rate hikes and possibility of recession, solar and wind stocks remained on the backburner over the past several months. But that does not mean the renewable energy sector has lost its growth catalysts that made it one of the hottest investment areas in the world in the first place. A BloombergNEF report on renewable energy investments said that annual global investments in energy transition technologies jumped to $1.77 trillion in 2023. This was a new all-time high and showed a 17% growth on a year-over-year basis.

The Bloomberg report also said investments in renewable energy projects like wind, solar, biofuels jumped 8% in 2023 to $623 billion.

Wind turbines against a backdrop of the sky, signifying the power of renewable energy.

Methodology

For this article we scoured different solar and wind energy ETFs and picked 12 stocks with the highest number of hedge fund investors. These are the best solar and wind stocks to buy according to hedge funds tracked by Insider Monkey as of the end of 2023. Some top names in the list include Tesla, Inc. (NASDAQ:TSLA), NextEra Energy Inc (NYSE:NEE) and General Electric Co (NYSE:GE). Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

12. Brookfield Renewable Partners LP (NYSE:BEP)

Number of Hedge Fund Investors: 17

Brookfield Renewable Partners L.P. (NYSE:BEP) is one of the world’s largest investors in the renewable energy space with projects in hydro, wind, solar, distributed energy and sustainable solutions. Earlier this month Brookfield Renewable Partners L.P. posted fourth quarter results. FFO in the period came in at $0.38, beating estimates by $0.01. Revenue in the quarter jumped 10.9% year over year to $1.32 billion, beating estimates by $130 million.

ClearBridge Sustainability Leaders Strategy made the following comment about Brookfield Renewable Partners L.P. in its Q3 2023 investor letter:

“Utilities NextEra Energy Partners, LP and Brookfield Renewable Partners L.P. (NYSE:BEP) have struggled of late due to macro conditions and a general cooling of sentiment and outflows from the clean energy sector as a whole. We continue to own Brookfield, which we view as one of the highest-quality pure-play decarbonization investments, characterized by a 5% dividend yield, stable fundamentals (over 90% of its cash flows are contracted with an average term of 14 years), a best-in-class balance sheet and adequate access to capital.”

11. Clearway Energy Inc Class C (NYSE:CWEN)

Number of Hedge Fund Investors: 22

New Jersey-based Clearway Energy Inc Class C (NYSE:CWEN) is one of the best wind and solar stocks to buy according to hedge funds. The company has over 5,500 net MW of installed wind and solar generation projects.

Earlier this month Clearway Energy Inc Class C increased its dividend by 1.7%.

Like Clearway, hedge funds also like Tesla, Inc., NextEra Energy Inc and General Electric Co.

10. Dominion Energy Inc (NYSE:D)

Number of Hedge Fund Investors: 26

Virginia -based energy company Dominion Energy Inc (NYSE:D) is working on several major solar and wind energy projects. The company’s 2.6-gigawatt offshore wind energy project Coastal Virginia Offshore Wind (CVOW) is ready to begin offshore construction in 2024.

However, on February 22, Dominion Energy Inc said it agreed to sell 50% non-controlling interest in the Coastal Virginia Offshore Wind commercial project to global infrastructure investor Stonepeak. Dominion Energy Inc will retain full operational control of the construction and operations of CVOW.

As of the end of the fourth quarter of 2023, 26 hedge funds tracked by Insider Monkey had stakes in Dominion Energy Inc.

9. Solaredge Technologies Inc (NASDAQ:SEDG)

Number of Hedge Fund Investors: 32

Solar technology company Solaredge Technologies Inc (NASDAQ:SEDG) ranks ninth in our list of the best wind power and solar stocks to buy now.

As of the end of the fourth quarter of 2023, 32 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Solaredge Technologies Inc. The biggest stake in Solaredge Technologies Inc is owned by John Overdeck and David Siegel’s Two Sigma Advisors which owns an $103.4 million stake in Solaredge Technologies Inc.

ClearBridge Select Strategy made the following comment about SolarEdge Technologies, Inc. in its Q3 2023 investor letter:

“Solar energy technology companies SolarEdge Technologies, Inc. (NASDAQ:SEDG) and Shoals, meanwhile, saw headwinds from destocking in the U.S. and Europe. U.S. demand could slow further due to new net metering rules that reduce the value to consumers from sending excess residential solar energy back to the grid. SolarEdge, which makes inverters for solar systems as well as residential and commercial battery systems, is also facing rising battery competition in the U.S. from Tesla.”

8. Nextracker Inc (NASDAQ:NXT)

Number of Hedge Fund Investors: 33

Nextracker Inc (NASDAQ:NXT) provides integrated solar tracker and software solutions used in utility-scale and ground-mounted solar projects.

Insider Monkey’s database of 933 hedge funds updated for the fourth quarter of 2023 shows that 33 hedge funds had stakes in Nextracker Inc.

Last month Nextracker Inc posted solid Q4 results and upped its guidance. Adjusted EPS in the period came in at $0.96, beating estimates by $0.47. Revenue in the quarter jumped 38.4% year over year to $710.43 million, beating estimates by $92.94 million.

7. Sunrun Inc (NASDAQ:RUN)

Number of Hedge Fund Investors: 35

Sunrun Inc (NASDAQ:RUN) ranks seventh in our list of the best wind power and solar stocks to buy now. A total of 35 hedge funds in Insider Monkey’s database of 933 hedge funds had stakes in Sunrun Inc as of the end of 2023.

Last month, Goldman Sachs published a list of stocks it believes could gain based on the relationship between weak pricing power and EBIT margins. Goldman said stocks with weak pricing power typically outperform as EBIT margins improve. Sunrun Inc made it to the list.

William B. Gray’s Orbis Investment Management had a $279 million stake in Sunrun Inc as of the end of 2023.

6. Enphase Energy Inc (NASDAQ:ENPH)

Number of Hedge Fund Investors: 43

Enphase Energy Inc is in the spotlight after Enphase Energy Inc’s (NASDAQ:ENPH) CEO Badri Kothandaraman said the company could begin to see a turnaround in business in the second quarter of 2024. Net income of Enphase Energy Inc fell to $21 million in the fourth quarter of 2024 from $154 million in the same quarter last year. Here are the comments of the CEO that are causing a renewed hope in the solar sector and lifting many solar stocks:

“We think Q1 could be the bottom quarter. Europe is already showing early signs of recovery, and we expect the non-California states to bounce back quickly.

California is the exception as NEM 3.0 is having some hiccups in the near-term. However, we remain very bullish about NEM 3.0 in the long-term. The payback is very attractive for solar plus storage. The utility rates are going up steeply on an annual basis, and the sales teams are learning fast. We see that the demand is going to eventually bounce back up in California as well. I’ll wrap up outlining our approach during these times. We are laser focused on ease of doing business on both high quality and great customer service. We are doubling down on operational excellence, correcting the channel and factory inventory concentrating on sell-through and installer count reducing our expenses and product costs and maintaining healthy gross margins.

We are getting many new products out and diversifying our portfolio rapidly. We are expanding worldwide with full systems comprising of IQ8 microinverters, IQ batteries, EV chargers and energy management software. We are introducing products with the small commercial solar markets worldwide and making continuous enhancements to our installer platform. In addition, we are innovating on GaN-based IQ9 and 10 microinverters, along with bidirectional EV chargers, our fourth and fifth generation IQ battery and AI-based energy management software to position us well for the long-term.”

Read the entire Q4 earnings call transcript here.

In addition to Tesla, Inc., NextEra Energy Inc and General Electric Co, Enphase is a top renewable energy stock according to hedge funds.

ClearBridge Sustainability Leaders Strategy made the following comment about Enphase Energy, Inc. in its Q3 2023 investor letter:

“Against this backdrop the Strategy underperformed, with the majority of detractors renewable- or utility-related companies suffering largely from cyclical interest rate pressures that have pushed up financing costs for the companies and weighed on income-producing sectors such as utilities. Most acutely, higher interest rates have dampened near-term U.S. residential solar demand, hurting Enphase Energy, Inc. (NASDAQ:ENPH) in particular. As a result, we sold Enphase, and invested proceeds into SolarEdge Technologies, which has greater exposure to European and utility-scale end markets, which are under comparatively less pressure.”

5. First Solar Inc (NASDAQ:FSLR)

Number of Hedge Fund Investors: 47

First Solar Inc (NASDAQ:FSLR) ranks fifth in our list of the best solar and wind stocks to buy according to hedge funds. As of the end of the fourth quarter of 2023, 47 hedge funds had stakes in First Solar Inc. The biggest stake in First Solar Inc is owned by Robert Pohly’s Samlyn Capital which owns a $309 million stake in First Solar Inc.

Earlier this month, BofA analysts set a $272 price target on First Solar shares. This price target presents a strong upside potential based on the February 20 stock price of $156.

4. Constellation Energy Corp (NASDAQ:CEG)

Number of Hedge Fund Investors: 41

Constellation Energy has several renewable energy projects under its belt. The company operates 27 wind projects across 10 states with a production capacity of 1,400 megawatts of electricity.

As of the end of the fourth quarter of 2023, 41 hedge funds tracked by Insider Monkey had stakes in Constellation Energy.

3. NextEra Energy Inc (NYSE:NEE)

Number of Hedge Fund Investors: 65

NextEra Energy Inc produces electricity through wind, solar, nuclear, natural gas, and other clean energy. The stock is making waves after it recently upped its dividend by 10.2%. With close to three decades of consistent dividend increases and a healthy yield of over 3.5%, it is one of the top favorite wind and solar stocks among hedge funds.

A total of 65 hedge funds tracked by Insider Monkey had stakes in NextEra Energy Inc as of the end of the fourth quarter of 2023.

ClearBridge All Cap Value Strategy made the following comment about NextEra Energy, Inc. in its Q3 2023 investor letter:

“Many businesses are threatened by a higher cost of capital, but one where reality has set in, and which also touches many other growth areas of the market, is the utility company NextEra Energy, Inc. (NYSE:NEE). Over the past few years, the company developed into a growth darling thanks to its strong track record in renewable energy development and tailwinds from the global energy transition and incentives in the Inflation Reduction Act. The problem for NextEra, and the transition broadly, is that this transformation is immensely capital intensive and many renewables projects offer lower returns on that capital. This requires high capital expenditures – often resulting in negative free cash flow – to meet the growth and financing needs of companies like NextEra. To help, the company leaned on financial engineering by using a publicly traded limited partnership called NextEra Energy Partners, providing further capacity for its parent to continue its development plans. NEP used layers of its own financial engineering to fund its own negative free cash flow and a large, growing dividend yield that we believe it could not sustain organically. Ultimately, the higher cost of debt from rising rates led NEP to lower its own growth ambitions, driving concerns about whether NextEra can execute on its extensive backlog. As a result, the stock has declined by approximately 30% year to date.”

2. Tesla Inc (NASDAQ:TSLA)

Number of Hedge Fund Investors: 82

Tesla’s solar panels business and its market leading position in the EV space makes it a notable stock in the solar and renewable energy industry. A total of 82 hedge funds tracked by Insider Monkey had stakes in Tesla as of the end of the fourth quarter of 2023.

O’keefe Stevens Advisory stated the following regarding Tesla, Inc. in its fourth quarter 2023 investor letter:

“In my Q4 2022, l made three predictions: 1. One of our top 25 holdings gets acquired 2. TSLA is a sub $200B market cap by the end of 2023 3. Crypto, the final blow.

Tesla, Inc. (NASDAQ:TSLA) is a sub $200B market cap by the end of 2023. Grade: D. TSLA performed contrary to expectations, appreciating approximately 100% in 2023 and ending the year with an $880 billion market cap. We were “just a bit outside,” but I’m not convinced our reasoning was flawed.

The typical strong correlation between earnings estimates and stock prices did not hold for TSLA during the year. Positive revisions suggest a company outperformed expectations, resulting in a higher price/valuation. Negative revisions suggested estimates were too high, and the stock should decline to meet a weaker outlook…” (Click here to read the full text)

1. General Electric Co (NYSE:GE)

Number of Hedge Fund Investors: 92

With a gigantic green energy arm Vernova, General Electric Co is among the top favorite wind power and solar stocks to buy according to hedge funds. General Electric Co plans to spin off its Vernova unit by April 2024 after which Vernova would be a publicly traded company. Vernova has 55,000 wind turbines and 7,000 gas turbines. General Electric Co says its technology helps generate a whopping 30% of the world’s electricity.

A total of 92 hedge funds tracked by Insider Monkey had stakes in General Electric Co as of the end of the fourth quarter of 2023.

Longleaf Partners Fund stated the following regarding General Electric Company in its fourth quarter 2023 investor letter:

“General Electric Company (NYSE:GE) – Industrial conglomerate General Electric (GE) was the top performer for the year. We exited this multi-year investment as its price went above our appraisal. In 1Q23, GE spun out GE Healthcare, which we sold as it traded at our value. The share price continued its strong performance throughout the spring and summer, and we ultimately sold the position in the third quarter when we no longer saw a margin of safety for the business. CEO Larry Culp was a great partner who created significant value for shareholders by reducing leverage, cutting costs, streamlining operations, improving company culture and simplifying the structure with plans to split the company into three businesses. We hope to have the opportunity to partner with him again in the future.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 12 Best Solar Power Stocks To Invest In According to Financial Media and the 12 Most Promising Solar Stocks According to Analysts.