This article is for informational purposes only and does not constitute financial advice. Investing in stocks involves risk, and past performance is not indicative of future results. Always conduct your own research or consult with a financial professional before making investment decisions.
The renewable energy sector is booming as the world shifts away from fossil fuels and focuses on cleaner alternatives to combat climate change. With government policies supporting this transition and technological advancements driving costs down, investing in renewable energy stocks has never been more appealing.
Whether you’re a seasoned investor or new to the market, now might be the perfect time to explore opportunities in this rapidly growing industry. Let’s highlight some of the best renewable energy stocks to buy in 2025, offering insight into their potential for growth and why they stand out in the field.
Which renewable energy stocks are worth buying in 2025?
The demand for clean energy is rising as governments and companies work to reduce carbon emissions. Investing in renewable energy stocks can be a smart way to take advantage of this growing industry. Some companies stand out because of their strong financials, long-term plans, and ability to generate consistent profits.
Why invest in renewable energy stocks?
Renewable energy stocks are attractive because they are backed by rising demand and government policies. Many countries have set ambitious targets to reduce their reliance on fossil fuels, which has led to more investment in clean energy sources like wind, solar, and hydro. Companies that generate and store renewable energy are benefiting from these changes, making them strong investment options.
Governments worldwide are passing laws to support the transition to clean energy. The Inflation Reduction Act in the U.S. and similar policies in Europe and Asia have created incentives for companies to expand their renewable energy projects. As the industry grows, companies that are already leaders in renewable energy are expected to perform well.
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1. NextEra Energy (NYSE: NEE)
NextEra Energy is one of the largest renewable energy companies in the world. The company generates power through wind and solar farms and serves millions of customers through its Florida-based utility business. It has been investing heavily in clean energy, aiming to eliminate carbon emissions from its operations by 2045.
NextEra has a strong financial track record, with a 9% compound annual growth rate in earnings per share since 2003. It has also increased its dividend for 30 consecutive years, making it a reliable stock for long-term investors. With plans to expand its solar and storage capacity, NextEra remains a top choice for renewable energy investors.
2. Brookfield Renewable Partners (NYSE: BEP)
Brookfield Renewable is a global leader in clean energy, with a focus on hydro, wind, solar, and battery storage. Nearly half of its portfolio is made up of hydroelectric plants, giving it a stable source of revenue. The company signs long-term contracts with customers, ensuring steady cash flow.
Brookfield has a strong history of increasing dividends, with annual dividend growth of 6% since 2001. It expects to grow its earnings by more than 10% per year over the next decade, driven by rising power prices and expansion projects. Investors looking for a solid renewable energy stock with reliable returns should consider Brookfield Renewable.
3. First Solar (NASDAQ: FSLR)
First Solar is a leading solar panel manufacturer that focuses on utility-scale solar projects. The company produces thin-film solar panels that are larger and more efficient than many competing technologies. It has a strong order backlog, with contracts to sell panels through 2030.
Unlike many other solar companies, First Solar has a strong balance sheet with little debt. It ended 2024 with $500 million to $700 million in net cash, giving it financial flexibility for expansion. With new manufacturing facilities opening in the U.S. and rising demand for solar panels, First Solar is well-positioned for growth.
4. Clearway Energy (NYSE: CWEN)
Clearway Energy is one of the largest owners of wind and solar energy projects in the U.S. It sells electricity through long-term power purchase agreements, ensuring a steady income stream. The company also owns natural gas facilities, which provide additional revenue.
Clearway expects to grow its cash available for distribution by 7.5% to 12% annually through 2027. This growth will support its goal of increasing its dividend by 5% to 8% per year. With a strong project pipeline and a solid financial outlook, Clearway is an attractive option for renewable energy investors.
5. Constellation Energy (NASDAQ: CEG)
Constellation Energy is the largest producer of carbon-free energy in the U.S. The company generates power through nuclear, hydro, wind, and solar plants. In early 2025, it announced a $26.6 billion acquisition of Calpine, making it the biggest clean energy provider in the country.
The deal will expand Constellation’s energy storage and natural gas capacity, which helps balance the intermittency of wind and solar power. The company is also investing in carbon capture technology and battery storage solutions. With its growing portfolio, Constellation Energy is a strong investment for those looking for a mix of renewable and low-carbon energy.
6. Vestas Wind Systems (CO: VWS)
Vestas Wind Systems is the world’s largest wind turbine manufacturer. The company has installed over 150 gigawatts of wind turbines across 80 countries. It continues to develop new technologies to improve the efficiency and cost-effectiveness of wind energy.
In 2024, Vestas reported a 10% increase in revenue, showing strong demand for its products. As countries expand their wind power capacity, Vestas is expected to remain a key player in the industry. Investors who want exposure to wind energy should consider Vestas.
7. Brookfield Renewable Partners (NYSE: BEP)
Brookfield Renewable owns and operates a diverse portfolio of renewable energy assets, including hydroelectric, wind, and solar power. The company generates steady cash flow by selling power through long-term contracts. Its strong financial position allows it to continue expanding its renewable energy projects.
Brookfield has a history of delivering strong returns, with a 12% annual growth rate in funds from operations since 2016. It expects to continue growing at a similar pace, driven by rising electricity prices and increased demand for clean energy. Investors looking for a reliable renewable energy stock with stable dividends should consider Brookfield Renewable.
Renewable energy stocks are expected to see continued growth as the world transitions away from fossil fuels. Investing in companies with strong financials, reliable revenue streams, and long-term growth plans can help investors benefit from this shift. The renewable energy industry is expanding rapidly, making it an exciting sector for those looking for long-term investment opportunities.
FAQs
What is the best renewable energy stock for dividends?
Brookfield Renewable Partners and NextEra Energy are among the best options for dividend investors. Both companies have a history of steady dividend growth and stable cash flow.
Is it risky to invest in renewable energy stocks?
Renewable energy stocks can be volatile due to changing government policies, supply chain issues, and energy price fluctuations. However, companies with strong balance sheets and long-term contracts tend to be more stable investments.
How will government policies impact renewable energy stocks?
Government incentives, such as tax credits and subsidies, can boost renewable energy stocks by encouraging investment in clean energy projects. However, changes in administration or trade policies can also create uncertainty in the market.
Should I invest in renewable energy stocks for the long term?
Renewable energy is expected to grow significantly in the coming decades as the world moves away from fossil fuels. Investing in well-established companies with strong financials and growth plans can be a good long-term strategy.
