Half of that power is enough for a cross-country drive by 15 million Teslas. This clean power demand by corporations is a “critical part” of America’s energy transition, the trade group says. Therefore, if the execution is right, PLUG stock will be a multibagger from current levels. The Invesco Solar ETF ranks well on ESG, with an A rating from MSCI. Overall, it ranks in the 45th percentile of global ETFs on ESG factors.

Along with its residential services, Enphase delivers a range of solutions for commercial enterprises, facilitating the equivalent magnitude of energy resilience at scale. Enphase has also installed more than 45 million microinverters — systems that convert direct current into alternating current — on over 2 million homes and businesses. The company owns and operates the first U.S. offshore wind project, the Block Island Wind Farm, which replaced five diesel generators and now powers 17,000 homes in Rhode Island. California’s Net Energy Metering (NEM) policy calls for homeowners to get credit when their solar panels push excess electricity onto the grid when the sun is shining. Under NEM 3.0, the rates homeowners will get are 75% lower than before.

• A potential solution to this problem is to invest in an exchange-traded fund (ETF) focused on clean energy.
• According to Deloitte’s “2023 renewable energy outlook,” residential solar demand is “growing faster than ever,” up 35% in the first half of 2022 from the same period a year ago.
• One of the main reasons for PLUG stock’s current pullback is that the share price had advanced exponentially over the past year.
• The IEA forecast suggests that governments and other entities need to significantly boost their investments in clean energy such as wind, solar, hydrogen, battery storage, and electric vehicles (EVs).

The current price level looks attractive for fresh exposure, and long-term investors could consider investing around these levels. Its domestic manufacturing capability sets First Solar apart from its peers as it doesn’t rely on the global solar supply chain. Most other names stateside, however, face tariffs for purchasing polysilicon, solar cells, and wafers from China.

Strong returns for investors

To be fair, WOLF stock is on the riskier side of the best energy stocks to buy. But with decent revenue so far this year, it could be a good long-term opportunity. Clean energy refers to any energy generated from renewable sources that have zero emissions to limit pollution in the environment when used. It can also be energy saved by the implementation of energy efficiency measures for later use. Evidently, solar, wind, hydroelectric, and other such types of energy are considered clean, green, or alternative energy forms. As one of the largest battery electric vehicle automakers in the world, the company went from a startup to a globally recognized luxury automaker in less than a decade, Goldstein adds.

For example, in 2023, First Solar acquired leading European thin film company Evolar to enhance its ability to develop next-generation solar technology. The company provides residential solar panels and home batteries throughout the U.S. As such, it also stands to benefit if Congress passes a new law that subsidizes the cost for consumers to install rooftop solar panels on their homes. Subsidies could take the form of tax credits for rooftop systems and stand-alone tax credits for solar storage.

Clean energy ETFs offer a broad approach to investing in the sector

This is due to households reacting to “rising retail electricity prices and weather-driven power outages,” the report states. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

We see successful investors bringing forward both operating experience in the energy, utilities, or infrastructure industries as well as a sound understanding of energy and commodity markets and policies. The Motley Fool got the chance to chat with investing expert Professor Priya Parrish of University of Chicago Booth School of Business. Here’s what Parrish had to say about investing in the renewable energy realm.

Plug Power, Inc. (NASDAQ:PLUG)

An example of sources could be sunlight and wind depending on their time and availability. According to Bloomberg New Energy Finance, by 2030, renewable energy sources will account for over 60% of the 5,579 gigawatts of new generation capacity and 65% of the $7.7 trillion in power investment. Allied Market research forecasts that the global clean energy market will be worth $1.5 trillion by 2025. As we move towards greater use of electric vehicles and solar-powered homes, several companies that are focused on renewable sources of energy are poised to benefit. Admittedly, NEE stock has encountered trouble this year, down 5% year-to-date (YTD).

The company also reaffirmed its 2023 revenue guidance of $1.2 to $1.4 billion. At the same time, Plug continued to report significant operating level losses. Clean energy investment needs to triple by the end of this decade to mitigate climate change and keep energy market volatility under control, according to the International Energy Agency.

A look at some of the best ways to invest in green energy using exchange-traded funds.

This means less savings for the homeowner, which could hurt solar panel sales. NextEra is also one of the best dividend stocks, with Ketchum saying the company expects to raise its dividend by 10% a year through “at least” 2024. The name General Electric (GE, $89.92) does not exactly evoke the image of renewable energy. But the early 2024 spinoff of its GE Vernova unit is expected to change all that. At the end of 2022, corporations had contracted 77 gigawatts (GW) of clean power from utility-scale projects.

Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies.

Plug Power Inc. (NASDAQ: PLUG)

With that said, here are seven of the best clean energy stocks to buy for 2022. The clean energy sector represents a massive opportunity for investors. However, investors must pick stocks carefully, since not all will capture the full extent of this opportunity. Two key https://1investing.in/ characteristics to look for are a strong balance sheet and a solar energy-focused growth profile. Those factors could give a company the power to generate higher returns. Clearway Energy is one of the largest owners of renewable energy generating facilities in the U.S.

In 2023, the far-and-away market share leader in electric cars expects 1.8 million automobiles to be delivered in 2023, representing 31% year-over-year growth. “America is in the midst of an energy transition,” according to the 2022 report by trade group American Clean Power. “Wind turbines, solar farms and battery storage facilities are popping up across the nation to deliver clean, affordable electricity.” This column focuses on three of the best hydrogen stocks to buy and hold. The economy needs energy across sectors to run smoothly, making these companies potential buys. The Invesco WilderHill Clean Energy ETF has a BBB ESG rating from MSCI, ranking in the 33rd percentile of funds in the alternative energy group.

Given its growing stream of renewable energy income, CWEN stock stands out as an attractive pick for long-term investors. In addition, it offers a generous dividend yield of 3.88% and targets 5% to 8% dividend growth. In October, we shared this real estate stock and since then, it’s been up nearly 50 percent. One of the internal growth rate formula challenges in the alternative energy space is how well the stocks have been doing — many companies favored by analysts and investors have gotten well-ahead of consensus price targets. While platforms like wind and solar grab all the headlines, a constant challenge with next-generation power sources is efficiency.

NextEra expects to deliver around 10% annual dividend growth through at least 2024. Meanwhile, it is likely to maintain one of the best balance sheets in the utility sector, giving the company the financial flexibility to continue expanding. One of the biggest catalysts for clean energy stocks right now is Russia’s invasion of Ukraine. Alongside the obvious implications, Russia has also made itself an unreliable economic partner.

Another powerful tailwind for the best clean energy stocks to buy is a growing realization about climate change. People are no longer viewing the world through rose-colored glasses. Better yet, the technologies undergirding renewable energy are now fostering efficiencies across multiple applications, making the sector more attractive for investors.