10 Best Renewable Energy Stocks to Buy According to Hedge Funds (2023)

In this article, we discuss the 10 best renewable energy stocks to buy according to hedge funds based on the data of over 800 hedge funds tracked by Insider Monkey. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Renewable Energy Stocks to Buy According to Hedge Funds.

Perhaps climate change activists are the ones to be credited the most for the globe’s attention being focused on the adverse impact of non-renewable energy sources like coal and oil being used and exhausted. Burning coal and drilling oil will always be two human practices that will be profitable in the short term but disastrous in the long run. But the environment notwithstanding, growing and unchecked reliance on non-renewable energy sources is and always will be a horrible mistake for the global community to make. For instance, according to the US Energy Information Administration, in 2018 alone, coal mining led to increased methane emissions, which accounted for roughly 11% of the total methane emissions in the US that year, alongside emissions from abandoned coal mines. These emissions collectively contribute to global warming by adding to the temperatures in the atmosphere. Hence, we are able to observe a shift towards renewable energy sources like wind and solar energy, to make up for the rapidly depleting and ever-harmful non-renewable energy sources.

Perhaps one of the biggest shifts towards renewable energy the world has seen as of yet is the emergence of electric vehicles (EVs), manufactured by companies like Tesla, Inc. (NASDAQ: TSLA), Workhorse Group Inc. (NASDAQ: WKHS), and Arcimoto, Inc. (NASDAQ: FUV). With the emergence of never before seen products like the Model S Plaid manufactured by Tesla, Inc. (NASDAQ: TSLA), the global community is slowly but surely being pulled into the EV trend. As a result of this, the reliance on non-renewable and environmentally unfriendly car fuel is being lessened, with a heavier reliance being placed on environmentally-friendly electric cars like Arcimoto, Inc.’s (NASDAQ: FUV) Deliverator, which has even begun to replace your average delivery man's typical vehicle. As of right now, the future seems to be one filled with EVs and other renewable energy products taking over in large numbers, with traditional energy sources going largely out of business. For instance, by 2030 the number of EVs on the streets is expected to hit an eye-popping 145 million, according to the International Energy Agency. They also mentioned that just last year, roughly three million new electric cars were registered.

According to a Deloitte report on 2021 renewable energy outlook, 2020 saw US states and businesses moving towards renewable energy plans despite the economic recession caused by the emergence of the coronavirus pandemic. The demand for renewable energy was seen to increase in 2020. In December 2020, the renewables' shares grew more than shares of coal generation for 153 days consecutively. Reliance on renewable energy sources was further consolidated through examples like New York State, which announced a renewable energy solicitation last year. 60% of this solicitation was said to be made up of offshore wind alone. New York State also committed $400 million for the development of port infrastructure, showcasing support for off-shore wind ports.

The above is testament to the fact that apart from the popularity of EVs in recent years, and the growing market value and importance of companies like Tesla, Inc. (NASDAQ: TSLA), Workhorse Group Inc. (NASDAQ: WKHS), and Arcimoto, Inc. (NASDAQ: FUV) that produce environmentally friendly EVs, other renewable energy industry developments are also underway. Wind and solar have and always will be excellent renewable energy sources, and the fact that both of them exist without any risks of them running out, only adds to their relevance. But to gain more insight into how the renewable energy industry is impacting the financial world, it’s better to take a look at some of the most popular renewable energy stocks among hedge funds as of the first quarter of 2021.

10 Best Renewable Energy Stocks to Buy According to Hedge Funds (1)

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The stocks added to our list below were selected on the basis of the number of hedge funds holding stakes in them. For that we analyze the data of 866 hedge funds tracked by our system. For each stock we mentioned the number of hedge funds having stakes in it.

10. NextEra Energy Partners, LP (NYSE: NEP)

Number of Hedge Fund Holders: 17

NextEra Energy Partners, LP (NYSE: NEP) is a renewable utility company working on clean energy projects in the US. The company’s portfolio consists of contracted renewable generation assets including solar and wind projects, among others. With headquarters in Florida, NextEra Energy Partners, LP (NYSE: NEP) was incorporated in 2014 and ranks 10th on our list of the best renewable energy stocks to buy according to hedge funds.

At the end of the first quarter, there were 63 hedge funds with stakes in NextEra Energy Inc. (NYSE: NEE), whose subsidiary is NextEra Energy Partners, LP (NYSE: NEP). The total value of their stakes was roughly $2.72 billion. This is compared to 61 hedge funds with stakes in the stock worth $3.07 billion in Q4 2020. Like Tesla, Inc. (NASDAQ: TSLA), Workhorse Group Inc. (NASDAQ: WKHS) and Arcimoto, Inc. (NASDAQ: FUV), NextEra Energy Partners, LP’s (NYSE: NEP) is a good stock to invest in.

9. Xcel Energy Inc. (NASDAQ: XEL)

Number of Hedge Fund Holders: 18

Xcel Energy, Inc. (NASDAQ: XEL) is an electric services company based in Minneapolis, Minnesota, and founded in 1999. The company generates electricity through a range of sources including various renewable energy sources like hydroelectric, solar, biomass, and wind. It also develops and leases natural gas pipelines and storage and compression facilities. Xcel Energy, Inc. (NASDAQ: XEL) ranks 9th on our list of the best renewable energy stocks according to hedge funds.

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This May, the company decided to buy natural gas for its Colorado consumer base. The newly purchased gas was produced with tight controls over the emission of greenhouse gases, making its use highly environmentally friendly. Xcel Energy, Inc. (NASDAQ: XEL) announced a $0.46 per share quarterly dividend this May, which will be payable on July 20th. The stock gained 6.92% in the past 6 months and 5.91% year to date. In its first quarter 2021 report, Xcel Energy, Inc. (NASDAQ: XEL) also announced $3.54 billion and $364 million in revenue and earnings respectively. The company also beat EPS estimates for the first quarter by $0.06 at $0.67.

There are 18 hedge funds with stakes in Xcel Energy, Inc. (NASDAQ: XEL) worth $200 million as of the first quarter of this year, down from 28 hedge funds with stakes worth $289 million in Q420.

8. Renewable Energy Group, Inc. (NASDAQ: REGI)

Number of Hedge Fund Holders: 21

Renewable Energy Group, Inc. (NASDAQ: REGI) is a company providing lower-carbon transportation fuels both in the US and internationally. Renewable Energy Group, Inc. (NASDAQ: REGI) also produces advanced biofuels by converting natural fats, oils, and greases. The biomass-based diesel the company produces is made from low carbon feedstocks like used cooking oil. Renewable Energy Group, Inc. (NASDAQ: REGI) with its strong foundation in renewable energy production ranks 8th on our list of the best renewable energy stocks to buy according to hedge funds.

The company received a “Buy” rating with a $90 price target from Citi on June 9th, prompting gains for the stock, which gained 4.2% following the announcement, and 3.05% in the past 6 months. Renewable Energy Group, Inc. (NASDAQ: REGI) also released its first-quarter report, according to which the company had $539.74 million in revenue and $39.22 million in earnings for that quarter.

As of the end of the first quarter of 2021 21 hedge funds held stakes in the stock worth $163 million, up from 16 hedge funds holding stakes in the company worth $66 million in Q420. Like Tesla, Inc. (NASDAQ: TSLA), Workhorse Group Inc. (NASDAQ: WKHS) and Arcimoto, Inc. (NASDAQ: FUV), Renewable Energy Group, Inc. (NASDAQ: REGI) is a good stock to invest in.

7. Clearway Energy, Inc. (NYSE: CWEN)

Number of Hedge Fund Holders: 24

This company is immersed in the renewable energy industry in the US and has a portfolio of district energy systems. Clearway Energy, Inc.’s (NYSE: CWEN) thermal infrastructure assets provide steam and hot or cold water, alongside electricity, to businesses, colleges, hospitals, and others. The company ranks 7th on our list of the best renewable energy stocks to buy according to hedge funds.

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This May, Clearway Energy, Inc. (NYSE: CWEN) announced a $0.33 per share quarterly dividend. This announcement markets a 1.5% increase in the company’s dividend previously, which was $0.32. The new dividend will be payable on June 15th. The company also completed its acquisition of Mt. Storm Wind Project two months ago.

Clearway Energy, Inc. (NYSE: CWEN) announced its first quarter 2021 report which showed a $237 million revenue, which dropped 8.1% year over year. In the first quarter, the company's GAAP EPS came in at $0.03, beating the Street estimates by $0.34. Clearway Energy, Inc. (NYSE: CWEN) gained 27.8% in the past year.

As of the end of the first quarter of 2021, 24 hedge funds had stakes in Clearway Energy, Inc. (NYSE: CWEN), worth $232 million. The number of hedge funds holding a stake in the company has risen as compared to Q420 when the number stood at 24.

6. First Solar, Inc. (NASDAQ: FSLR)

Number of Hedge Fund Holders: 24

First Solar, Inc. (NASDAQ: FSLR) is a renewable energy producer focusing on solar power and providing photovoltaic solar energy solutions in a range of countries across the globe including the US, Japan, France, and Canada, among others. This company ranks 6th on our list of the best renewable energy stocks to buy according to hedge funds.

According to the company’s first quarter of 2021 report, First Solar, Inc. (NASDAQ: FSLR) beat EPS estimates by $0.78 with its $1.96 worth of EPS.

First Solar, Inc. (NASDAQ: FSLR) has gained 58.83% in the past year, and currently, 24 hedge funds hold stakes in the stock worth $304 million, although this is a fall from Q420 reported numbers of 34 hedge fund holders with stakes worth $406 million in the company.

White Brook Capital, in their Q1 2021 investor letter, mentioned First Solar, Inc. (NASDAQ: FSLR) and Itron, Inc. (NASDAQ: ITRI). Here is what White Brook Capital has to say about First Solar, Inc. and Itron, Inc. in its letter:

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"First Solar (FSLR) and Itron (ITRI), both of which I’ve written about in past In Focus sections were long-term positions that were sold as their prices exceeded price targets. Both are solid companies that remain on my watchlist, but the opportunity cost of not investing in other potential investments exceeded their potential mid-term returns.”

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Disclosure: None. 10 Best Renewable Energy Stocks to Buy According to Hedge Funds was originally published on Insider Monkey.

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What company is leading in renewable energy? ›

Adani Green Energy Limited

Based in Ahmedabad, India, and part of the Adani Group, Adani Green Energy Limited is a leading renewable power company in India with a portfolio of 20.4 GW of renewable energy projects including operating, under-construction, awarded and bid projects.

What are the best energy stocks to buy now? ›

Top Energy Stocks
  • TSLA. Tesla Inc.
  • AAPL. Apple Inc.
  • AMZN. Amazon.com, Inc.
  • WMT. Walmart Inc.
Jan 25, 2023

Which renewable energy ETF is best? ›

  • First Trust NASDAQ Clean Edge Green Energy Index Fund. QCLN. $2.4B. ...
  • ALPS Clean Energy ETF. ACES. $801.9M. ...
  • Invesco WilderHill Clean Energy ETF. PBW. $268.8M. ...
  • Invesco Solar ETF. TAN. - ...
  • VanEck Vectors Low Carbon Energy ETF. SMOG. ...
  • Invesco Global Clean Energy ETF. PBD. ...
  • SPDR Kensho Clean Power ETF. CNRG. ...
  • iShares Global Clean Energy ETF. ICLN.
7 days ago

What are the best energy stocks to buy for 2022? ›

Energy sector stocks to buy
1 more row

What is the fastest growing renewable energy sectors? ›

Wind and solar are the fastest growing renewable sources, but contribute just 5% of total energy used in the U.S.

Who has invested the most in renewable energy? ›

In 2022 chinese investment in clean energy is the highest worldwide. China pumped more than 90 billion USD into clean energy research and development.

Who are the key players in renewable energy? ›

15, 2021, could well benefit many of these companies, as it authorizes spending for many clean-energy initiatives.
  • General Electric Co. ( GE) ...
  • Iberdrola SA (IBDRY) ...
  • Constellation Energy Corp. ( ...
  • NextEra Energy (NEE) ...
  • Vestas Wind Systems A/S (VWDRY) ...
  • Jinko Solar Holding Co. ...
  • Canadian Solar Inc. ( ...
  • Brookfield Renewable Corp. (

What stocks will boom in 2023? ›

But Cramer said many of Wall Street's concerns are overblown. “I see so many segments of the market that could be potential winners in 2023, it's hard to take these supposedly sophisticated doomsayers seriously,” he said.
Here is his list.
  • Eli Lilly.
  • Humana.
  • Johnson & Johnson.
  • Caterpillar.
  • Deere.
  • TJX Companies.
  • Morgan Stanley.
Dec 20, 2022

Should you invest in renewable energy stocks? ›

Investing in renewable energy means capital is at risk, and future results are not guaranteed. However, a diversified investment portfolio of renewable energy stocks is unlikely to be high risk, as fossil fuels are phased out while global electricity demand continues to rise.

What is the cheapest energy stock to buy? ›

Best Affordable Energy Stocks to Buy Now
  • Fuel Tech, Inc. (NASDAQ:FTEK) ...
  • Ocean Power Technologies, Inc. (NYSE:OPTT) ...
  • NACCO Industries, Inc. (NYSE:NC) ...
  • Natural Resource Partners L.P. (NYSE:NRP) Number of Hedge Fund Holders: 4. ...
  • Broadwind, Inc. (NASDAQ:BWEN) ...
  • FuelCell Energy, Inc. ...
  • Enterprise Products Partners L.P. (NYSE:EPD)
Dec 2, 2022

What is the best green energy ETF for 2022? ›

1. iShares Global Clean Energy ETF (ICLN)
  • Consolidated Edison, Inc. ( ED)
  • Vestas Wind Systems AS ADR (VWDRY)
  • First Solar, Inc. ( FSLR)
  • SolarEdge Technologies, Inc. ( SEDG)
  • Orsted ADR (DNNGY)
  • Plug Power, Inc. ( PLUG)
  • Electrobras.
  • Adani Green Energy.
Nov 29, 2022

What is the largest renewable energy ETF? ›

The largest Renewable Energy ETF is the iShares Global Clean Energy ETF ICLN with $5.30B in assets. In the last trailing year, the best-performing Renewable Energy ETF was TAN at 18.63%.

What are the top 5 ETFS to buy? ›

Holds about 4,500 international stocks of all sizes.
  1. Vanguard 500 Index Fund. ...
  2. Invesco QQQ Trust. ...
  3. Vanguard Growth Fund. ...
  4. Avantis Small-Cap U.S Value ETF. ...
  5. Franklin U.S. Low Volatility High Dividend ETF. ...
  6. Vanguard Total Stock Market ETF. ...
  7. iShares Core MSCI Total International Stock ETF.

Which stock will grow fast in 2022? ›

#1 Adani Green Energy. This year, the fastest-growing stock is Adani Green Energy, one of the largest the largest renewable energy companies in India. The company's shares have given a return of 113% in 2022.

What is the best energy option for the future? ›

One of the benefits of solar energy is that sunlight is functionally endless. With the technology to harvest it, there is a limitless supply of solar energy, meaning it could render fossil fuels obsolete. Relying on solar energy rather than fossil fuels also helps us improve public health and environmental conditions.

Will energy stocks go up in 2023? ›

After two straight years of big gains, energy stocks could outperform the market again in 2023, but this time it will be higher dividends rather than oil that will spur appetite for the sector.

What is the most successful renewable energy resource? ›

The largest source of sustainable energy in the United States, wind power is responsible for about 8.4 percent of all energy sources generated in the country. The wind is capable of generating power on a massive scale, and it is especially noted among renewables advocates for the wide range of benefits it offers.

What are the top 3 renewable resources? ›

The most popular renewable energy sources currently are:

Solar energy. Wind energy. Hydro energy.

Does Warren Buffett invest in renewable energy? ›

However, a deeper dive shows that Buffett remains invested in both renewable energy and electric vehicles.

What is the largest renewable energy USA? ›

Since 2019, wind power has been the largest producer of renewable electricity in the country. Wind power generated 337.9 terawatt-hours of electricity in 2020, which accounted for 8.4% of the nation's total electricity generation and 43.2% of the total renewable electricity generation.

What is the largest renewable energy company in the United States? ›

NextEra Energy, Inc.

It is the world's largest generator of renewable energy from the wind and sun and a leader in battery storage.

Does Elon Musk invest in renewable energy? ›

Investors shouldn't be surprised that Musk favors renewable power and batteries. He founded Tesla to help put the world on a path toward his vision of a sustainable energy future. Tesla , of course, also sells solar roofs as well as residential and utility-scale battery storage products.

Which stock will double in 2023? ›

Coupang (NYSE:CPNG) stock is another name among growth stocks that's likely to double in 2023. The e-commerce company has the worst behind it in terms of cash burn.

Which stock will double in 3 years? ›

DD's Stock Doubling in 3 years
S.No.NameQtr Sales Var %
2.Tata Elxsi28.69
3.Persistent Sys45.43
4.Solar Industries77.99
23 more rows

Which stock will grow in 5 years? ›

Growth stocks for next 5 years
1.Brightcom Group3.97
2.Balu Forge21.23
3.AVT Natural Prod15.96
4.Shankar Lal Ram.31.26
23 more rows

Will renewable energy stocks go up 2022? ›

And growth is expected to continue for one of the best green energy stocks out there. "BEP's inflation-linked offtake contracts and self-funding investment model" should accelerate FFO growth 14% for 2022-2023 – up from 9% in 2021, says UBS Global Research analyst William Grippin (Buy).

Is Brookfield renewable a good stock? ›

Brookfield Renewable Partners has a track record of strong financial performance, with consistent revenue and earnings growth over the past several years. The company also has a solid balance sheet, with a strong credit rating and low levels of debt.

Is renewable energy a good long term investment? ›

Financial Gain: Make some green while investing in green

Over 10 years, renewable energy outperformed fossil fuel, generating returns of 192.3% compared to 97.2%.

Which energy stock pays the highest dividend? ›

Enterprise Products Partners, Brookfield Infrastructure, and NextEra Energy offer investors above-average dividend yields. Those already sizable payments should head even higher in 2023.

What are some energy penny stocks? ›

  • 5.1 1. American Battery Technology Co. ( ...
  • 5.2 2. Huadi International Group Co. ( ...
  • 5.3 3. FuelCell Energy Inc. ( ...
  • 5.4 4. Clean Vision Corp. ( ...
  • 5.5 5. Meta Materials Inc. ( ...
  • 5.6 6. Vision Energy Corp (OTCQB: VENG) — A Penny Stock Reinventing Itself.
  • 5.7 7. Renewable Innovations Inc. (
Dec 16, 2022

What is the cheapest renewable energy? ›

According to the IEA's World Energy Outlook and other research projects, solar and wind energy have continued to occupy the top spots in terms of the cheapest renewable energy sources. Both energy sources cost significantly less than fossil fuel alternatives and continue to become more affordable every year.

Is it worth investing in renewable energy? ›

We believe renewable energy trusts have become attractive investments. Many provide a good income, solid total returns including some protection from inflation, as well as diversification from traditional asset classes.

What energy company did Bill Gates invest in? ›

Form Energy Inc., an energy-storage company backed by Bill Gates's Breakthrough Energy Ventures, is planning a $760 million factory in West Virginia, the latest plant announced in the aftermath of President Joe Biden's landmark climate law.

What energy stocks is Buffett buying? ›

Berkshire now owns about $58 billion of energy securities in Chevron (CVX) and Occidental Petroleum (OXY), which makes it one of the company's larger group of investments.

What three stocks does Warren Buffett Own? ›

Top stocks that Warren Buffett owns by size
Chevron (NYSE:CVX)165,359,318$29.9 billion
Coca-Cola (NYSE:KO)400,000,000$25.2 billion
American Express (NYSE:AXP)151,610,700$23.1 billion
Occidental Petroleum (NYSE:OXY)194,351,650$13.3 billion
6 more rows

Which renewable energy is the future? ›

A turbine converts the kinetic energy of falling water into mechanical energy. Then a generator converts the mechanical energy from the turbine into electrical energy. According to the IEA, hydropower will remain the world's primary source of renewable power in 2024.

Is it too late to buy energy stocks? ›

If you are wondering if it's too late to get into energy stocks the best answer is no.

Should I buy NextEra Energy stock? ›

The renewable-energy-powered juggernaut has ample growth still ahead. It sees a jaw-dropping $4 trillion investment opportunity over the next 30 years to decarbonize the U.S. economy. As a leader in this space, NextEra is a no-brainer growth stock to buy and hold long term.

Are renewable energy stocks rising? ›

Not surprisingly, highly volatile renewable energy stocks have been rising with them. Sunrun (RUN 5.34%) jumped as much as 10% in trading today, Bloom Energy (BE 0.93%) was up 6.4%, and Lordstown Motors (RIDE 7.50%) gained 7.1%.

How do I start investing in renewable energy? ›

How Do You Invest in Green Energy? The easiest way to invest in green energy is to find a mutual fund or index fund that invests in a wide basket of renewable energy securities. There are many such funds, each managed according to a different strategy or targeting a different renewable energy index.


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