What are green energy stocks?
Renewable energy – whether harnessed from the sun, wind, or water – is having a big moment. As the world races to tackle climate change, renewables are quickly becoming the power of choice, promting many to increasingly invest in green energy stocks.
What is a green energy stock?
It turns out that making a profit and saving the planet are not always contradictory goals. Luckily, there are a few practical things you can do with your investments. First and foremost, you can choose to invest in green energy shares, or companies whose efforts focus entirely on making our planet more sustainable. At the moment, these climate-friendly companies are booming, so you as an investor can contribute to their innovative missions for a better world through stocks.
Specifically, these green energy stocks include companies that actively support the transition to a sustainable, climate-friendly energy system. It’s why green energy stocks are also known alternative energy stocks or renewable energy stocks.
Why people invest in green energy stocks?
According to the market research firm Allied Market Research, over the next eight years, the global renewable energy market is expected to hit nearly $2 trillion, up from $881.7 billion in 2020 — an impressive compound annual growth rate of 8.4%. And green energy stocks will be one of the major beneficiaries of this exciting expansion.
All signs point to the world going green. And suffice it to say, green energy is one area that many investors are eyeing for significant growth opportunities in 2023 and beyond.
Best green stocks for investors
Here are the best green stocks for investors who are looking to profit from the growing sustainability trend.
ChargePoint Holdings
ChargePoint Holdings, Inc. (NASDAQ:CHPT), a California-based company that provides electric vehicle (EV) charging networks in the United States and internationally, serves commercial, fleet, and residential customers. In October, ChargePoint announced the much anticipated launch of its CP6000 charger. It is the company’s most servicable, flexible, and adaptable EV charger, compatible with all types of vehicels and EV sizes. Under California Energy Commission’s REACH program, ChargePoint has been allocated $4.25 million USD to set up hundreds of EV charging ports at apartment buildings and condos, with 75% of the funds going to buildings in low-income areas. For Q3 the company reported a quarterly revenue of $125.3 million. With 93%, this is almost twice as much as the $65.0 million in the 2021’s same quarter.
Brookfield Renewable Partners
Brookfield Renewable Partners L.P. owns a portfolio of renewable power generating facilities across North America, Colombia, Brazil, Europe, India, and China. Brookfield generates electricity by utilizing hydroelectric, wind, solar, and biomass sources. The company’s Q3 revenue of $896 milllion rose by more than 10% as compared to the previous year’s same quarter. Approximately 2,700 megawatts of its new energy projects were commissioned, including a 1,200-megawatt solar plant in Brazil. Brookfield also continues to advance the development of green energy projects to the tune of 19,000-megawatts that are not yet online.
SunPower Corporation
SunPower Corporation is a California-based solar technology and energy services provider in the United States and Canada. As of December 6th and over the last six months, the stock has climbed about 28%, despite a negative overall market sentiment. Shares of the company gained roughly 10% on November 8th, as the firm reported its Q3 earnings, including GAAP revenues climbing by 67% year-over-year to $470 million. The company had 23,100 new customers in Q3, representing a 63% YoY increase. SunPower will also benefit from the clean energy initiatives in the U.S. Inflation Reduction Act (IRA), which provides a raft of financial support to new U.S.-based solar, battery, and EV factories.
Array Technologies
Array Technologies (NASDAQ: ARRY), a leading U.S. provider of utility-scale solar trackers, makes products that boost the performance of solar power projects worldwide. ARRY stock’s performance over the last six months was stellar: the price rose by more than 60%. With the acquisition of its competitor STI Norland in 2022, Array Technologies is now a global player in solar tracking, servicing slightly more than 22 GW of solar capacity. With no negative effects from the acquistion, Array Technologies grew its revenue in Q3 this year by 112% as compared to the same quarter in 2021. In absolute terms, the revenue in the third quarter amounted to $515 milllion.
Enphase Energy
If you want to invest in the U.S. solar sector, Enphase Energy might be worth a look. The company develops, manufactures, and sells home energy solutions for the solar market in the U.S. and internationally. Enphase offers its solutions to a wide range of clients including solar distributors, large installers, original equipment providers, and homeowners. The company, headquartered in Fremont, California, was incorporated in 2006. Enphase achieved a record quarterly revenue in Q3 2022 of $634 million, and its stock price rose by 63% in the last six months.
Green energy stocks are Pure Climate Stocks
If you want to be certain that the green energy stocks you are considering for investment are not also in the fossil fuel business, then the above list is a great place to start. We screened them for you, so you can be certain that the green energy stocks featured in this blog are also Pure Climate Stocks. It means that these stock-listed companies generate 100% of their revenue from products or services that are crucial for the economic transformation to net zero emissions. Worldwide, around 200 stocks currently meet this criteria, and Pure Climate Stocks exist across many different sectors. But among all Pure Climate Stocks, the renewable energy stocks represent the highest share. And although there are several Exchange Traded Funds (ETF) dealing in renewable energy or green stocks, it’s crucial to remember not all of those ETF’s stocks are actually 100% free of fossil fuels.
If you want build your own profitable, diversified portfolio of stocks that deliver 100% climate impact, you can join our Pure Climate Stocks Advanced Course. You will learn a proven, easily applied, and practical method for achieving financial success with Pure Climate Stocks.
