11 Best Alternative Energy Stocks to Buy Right Now

In this article, we will take a detailed look at the 11 Best Alternative Energy Stocks to Buy Right Now.

Artificial intelligence has the potential to trigger a generational swell in energy. According to Karim Moussalem, Chief Investment Officer of Equities at London-based Selwood Asset Management LLP, renewable energy sources are likely to play a significant role in addressing emerging energy needs amid the AI revolution.

“The market is telling you that AI is the biggest thing we’ve seen in our entire careers,” said Karim Moussalem.

The sentiments come as hedge funds increasingly wind back short trades on solar stocks. According to a Bloomberg Green analysis, hedge funds are on the verge of net shorting stocks in the S&P Global Oil Index, as most turn their attention to stocks focused on renewable energy. The analysis also reveals that approximately 700 hedge funds, representing $700 billion in assets, are shifting their focus to wind as an alternative energy source.

Similarly, Todd Warren, portfolio manager at Tribeca Investment, believes that the bottoming out of clean energy plays affirms the attractive investment opportunities in the alternative energy sector, which is moving away from fossil fuels. President Donald Trump’s $3.4 trillion budget bill is also favorable towards the renewable energy market, asserting why it is an attractive investment frontier.

While the renewable energy sector has faced some setbacks, the long-term outlook remains solid, according to Arif Gasilov, founder of the sustainability and ESG consulting company Gasilov Group.

“It’s going to be choppy, no doubt. But I still think we’re heading toward more capital moving into renewables, not less. Especially as climate risk gets priced in more seriously by institutional allocators,” Gasilov.

12 Best Alternative Energy Stocks to Buy Right Now

Our Methodology

To compile our list of the best alternative energy stocks to buy right now, we utilized various ETFs, including the ALPS Clean Energy ETF, iShares Global Clean Energy ETF, and SPDR S&P Kensho Clean Power ETF, among others, to scan for alternative energy companies that are popular among elite hedge funds. We then focused on stocks with year-to-date returns of more than 20% as of August 19. Finally, we ranked the stocks in ascending order based on the number of hedge funds that hold stakes in them as of Q1 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Best Alternative Energy Stocks to Buy Right Now

11. Brookfield Renewable Corp (NYSE:BEPC)

Year-to-date returns: 20.29%

Number of hedge fund holders: 19

Brookfield Renewable Corp (NYSE:BEPC) is one of the best alternative energy stocks to buy right now. The company reported disappointing Q2 2025 results on August 1, with an EPS of -$4.16 versus the expected $0.01, and revenue of $991 million falling 44% short of forecasts. Despite the miss, the company maintains a robust liquidity position of $4.7 billion, providing financial flexibility for future investments.

Operationally, Brookfield showed strength in key segments. Funds from Operations (FFO) rose 10% year-over-year to $371 million, driven by a 50% surge in hydroelectric FFO and a 40% increase in distributed energy. The company also commissioned 2.1 gigawatts of new renewable capacity, reinforcing its commitment to clean energy expansion.

Looking ahead, Brookfield remains optimistic, targeting over 10% FFO growth per unit and 12%–15% long-term total returns. CEO Conor Teske emphasized the need for build-ready projects over capital or demand, and spotlighted battery technology as the fastest-growing area within the company’s platform.

Brookfield Renewable Corp (NYSE:BEPC) manages a diverse portfolio of renewable energy and sustainability-focused assets. Its holdings span hydroelectric, wind, utility-scale solar, distributed generation, pumped storage, carbon capture, cogeneration, biomass, and eFuel technologies. The company operates approximately 13,948 megawatts of installed capacity across hydro, wind, solar, and storage systems, with facilities located in Brazil, Colombia, North America, and Europe. This global footprint supports Brookfield’s mission to deliver clean, reliable energy solutions at scale.

10. Constellation Energy Corporation (NASDAQ:CEG)

Year-to-date returns: 30.45%

Number of hedge fund holders: 83

Constellation Energy Corporation (NASDAQ:CEG) is one of the best alternative energy stocks to buy right now. On August 7, the company delivered better-than-expected second-quarter results, attributed to strong performance in the Generation and Commercial businesses.

The company generated adjusted operating earnings of $1.91 per share, representing a significant improvement from the $1.68 per share reported in the same quarter last year. Revenue in the quarter totaled $6.1 billion, against $4.88 billion that analysts expected.

The better-than-expected results came as Constellation Energy capitalized on increasing demand for electricity to power American families, businesses, electric vehicles, and artificial intelligence. Amid the strong demand, the company is increasingly adding megawatts to the grid and extending the lives of its existing fleet. It also plans to expedite the Crane Clean Energy Center restart, as it expands nuclear plant capacity.

Constellation Energy Corporation (NASDAQ:CEG) is the nation’s largest producer of reliable, clean, carbon-free energy and a leading supplier of energy products and services. It provides electric power, natural gas, and energy management services.

9. Array Technologies Inc. (NASDAQ:ARRY)

Year-to-date returns: 32.27%

Number of hedge fund holders: 29

Array Technologies Inc. (NASDAQ:ARRY) is one of the best alternative energy stocks to buy right now. On August 11, UBS increased its price target of the stock from $8.50 to $9.00 and reaffirmed a Buy rating after the company released its Q2 2025 earnings. The upward revision was driven by Array’s updated financial guidance, which pointed to stronger gross margins in the latter half of 2025. Additionally, the company signaled that similar margin levels are expected in early 2026, suggesting a stable and resilient profitability outlook.

In light of this guidance, UBS adjusted its EBITDA projections for the next three years. The firm now expects $200 million in 2025, $244 million in 2026, and $268 million in 2027—each slightly higher than previous estimates. These revisions reflect not only improved margins but also a modest boost in revenue, attributed to increased annual sales of solar trackers, a core product in Array’s portfolio.

UBS maintains a bullish stance on Array Technologies, citing the robust momentum in utility-scale solar development and the company’s strategic ability to navigate tariff-related cost pressures. With a favorable industry backdrop and operational discipline, Array appears well-positioned to capitalize on long-term growth opportunities in the renewable energy sector.

Array Technologies Inc. (NASDAQ:ARRY) designs, produces, and distributes solar tracking systems across the United States and key international markets, including Spain, Brazil, and Australia.

8. Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR)

Year-to-date returns: 32.55%

Number of hedge fund holders: 14

Centrais Elétricas Brasileiras S.A. – Eletrobrás (NYSE:EBR) is one of the best alternative energy stocks to buy right now. On August 15, the company announced that its recently acquired Colíder Hydroelectric Power Plant in Mato Grosso, Brazil, has been placed under “ALERT” status due to multiple drainage system failures.

The 300-megawatt facility, acquired from Copel on May 30, was already under “ATTENTION” classification at the time of purchase. Since then, four of the plant’s 70 drainage structures, critical for managing water pressure beneath the dam, have been damaged, prompting safety concerns.

Following expert recommendations, Eletrobras initiated a reservoir level reduction and activated its Emergency Action Plan, notifying relevant authorities and communities. Despite the incidents, the company affirmed that the plant remains compliant with safety regulations and emphasized its commitment to protecting people, the environment, and infrastructure.

Centrais Elétricas Brasileiras S.A. – Eletrobras (NYSE: EBR) stands as a leading force in Brazil’s energy sector, generating power from a diverse mix of hydro, thermal, nuclear, wind, and solar sources. Its portfolio includes 44 hydroelectric facilities, five thermal plants, and two nuclear stations. In addition to its generation assets, Eletrobras operates one of the largest transmission networks in the country, spanning more than 66,000 kilometers and playing a vital role in delivering electricity across Brazil.

7. Ormat Technologies, Inc. (NYSE:ORA)

Year-to-date returns: 32.66%

Number of hedge fund holders: 23

Ormat Technologies, Inc. (NYSE:ORA) is one of the best alternative energy stocks to buy right now. On August 11, UBS reiterated a ‘Buy’ rating on the stock and a $105 price target. The positive stance comes as the research firm remains bullish about the company’s growth metrics.

The company has been expanding its portfolio of geothermal and energy storage projects. The expansion comes as Ormat Technologies sets sights on capitalizing on the growing demand for renewable energy solutions amid the artificial intelligence revolution.

The completion of the Blue Mountain geothermal power plant acquisition for $88 million has once again underscored the focus on strengthening the renewable energy portfolio. Ormat plans to upgrade the power plant and increase its capacity by 3.5MW. The company’s strategic expansion plans also include the proposed addition of a 13MW solar facility.

Ormat Technologies, Inc. (NYSE:ORA) is a company that develops, manufactures, and provides renewable energy solutions, specializing in geothermal and recovered energy generation. They design, build, own, and operate power plants using these technologies, and also offer after-sales services. Additionally, Ormat explores and develops energy storage solutions.

6. Sunrun Inc. (NASDAQ:RUN)

Year-to-date returns: 50.54%

Number of hedge fund holders: 36

Sunrun Inc. (NASDAQ:RUN) is one of the best alternative energy stocks to buy right now. On August 18, RBC Capital upgraded Sunrun from Sector Perform to Outperform and raised its price target from $12 to $16.

The move reflects RBC’s confidence in Sunrun’s long-term prospects, driven by clearer U.S. Treasury guidance and favorable changes to OB3 regulations. These updates, along with clarified rules for the Investment Tax Credit (ITC) and Production Tax Credit (PTC), reduce uncertainty and strengthen Sunrun’s business model.

RBC analyst Christopher Dendrinos highlighted that the revised outlook supports a projected 15% cash generation yield by 2026, consistent with Sunrun’s historical performance. The upgrade signals a rerating opportunity for the stock, as regulatory clarity enhances its growth trajectory and overall value proposition.

Sunrun Inc. (NASDAQ:RUN) specializes in residential solar energy solutions, handling everything from design and development to installation, sales, ownership, and maintenance. The company delivers its offerings through three key channels: direct-to-consumer sales, solar partnerships, and strategic collaborations.

5. Enlight Renewable Energy Ltd (NASDAQ:ENLT)

Year-to-date returns: 51.99%

Number of hedge fund holders: 1

Enlight Renewable Energy Ltd (NASDAQ:ENLT) is one of the best alternative energy stocks to buy right now. On August 7, Roth/MKM reiterated a ‘Buy’ rating on the stock and raised the price target to $28 from $23. The price target hike is in response to the company’s solid second-quarter financial results, which include an upward revision to 2025 guidance.

The company has been firing on all cylinders, as evidenced by an impressive gross profit margin of 76.6% and a revenue growth rate of 39.54% over the last 12 months. It has also safely harbored 6 gigawatts of its portfolio and is on course to reach between 6.5 and 8 GW before July next year.

Enlight Renewable has already secured $310 million in financing agreements, which are expected to support the expansion of the Gecama Wind Project in Spain. The project aims to establish the largest hybrid renewable energy complex in the country.

Enlight Renewable Energy Ltd (NASDAQ:ENLT) is an alternative energy company that develops, constructs, finances, and operates large-scale renewable energy projects. It focuses on solar, wind, and energy storage. It is also a leading independent power producer with a diverse global presence across three continents.

4. Nextracker Inc. (NASDAQ:NXT)

Year-to-date returns: 76.44%

Number of hedge fund holders: 41

Nextracker Inc. (NASDAQ:NXT) is one of the best alternative energy stocks to buy right now. Guggenheim upgraded the stock from a Neutral to a Buy on August 18, setting a price target of $74. The move follows updated IRS safe-harbor rules that favor tracker companies, specifically recognizing racking installation and off-site work as qualifying activities for clean energy tax credits.

Guggenheim analyst Joseph Osha highlighted the benefit to Nextracker’s core offerings, including mounting and support structures, which now meet the physical work test for credit eligibility.

The firm also emphasized Nextracker’s strong domestic supply chain, positioning it well under Foreign Entity of Concern (FEOC) restrictions. Despite a 50% stock surge over the past year, Guggenheim sees further upside, citing attractive valuation multiples supporting its bullish stance.

Nextracker Inc. (NASDAQ:NXT) is an alternative energy company that provides solar trackers and software solutions for utility-scale and distributed generation solar projects. It is the world’s leading supplier of solar trackers, which optimize energy production by following the sun’s movement. Its products enhance power generation, protect against extreme weather, and integrate with advanced solar technologies.

3. GE Vernova Inc. (NYSE:GEV)

Year-to-date returns: 80.30%

Number of hedge fund holders: 111

GE Vernova Inc. (NYSE:GEV) is one of the best alternative energy stocks to buy right now. On August 15, Jefferies reaffirmed its Hold rating on GE Vernova and raised its price target from $620 to $658, citing improved EBITDA projections. The firm updated its financial model, lifting its FY2028 EBITDA estimate by 5%, driven by a shift toward higher-margin service revenue.

Jefferies expects GE Vernova’s Power segment to reach EBITDA margins in the high 20% range by the 2030s, supporting a more positive long-term outlook for the company. While pricing trends remain favorable, the firm flagged potential softening after a competitor reported slower, but still positive, price momentum.

GE Vernova beat Q2 2025 expectations with EPS of $1.86 and revenue of $9.11 billion, up 11% year-over-year and 12% organically. Driven by strong equipment and services performance, the company raised its full-year guidance, projecting revenue near the top of its $36–$37 billion range, boosting its EBITDA margin forecast to 8–9%, and increasing free cash flow guidance to $3.0–$3.5 billion.

GE Vernova Inc. (NYSE:GEV) is a global energy firm specializing in electricity generation, transmission, and storage. It operates through three segments: Power (gas, hydro, nuclear, steam), Wind (onshore and offshore turbines), and Electrification (grid solutions, solar, storage, and software).

2. Bloom Energy Corporation (NYSE:BE)

Year-to-date returns: 83.42%

Number of hedge fund holders: 44

Bloom Energy Corporation (NYSE:BE) is one of the best alternative energy stocks to buy right now. On August 4, Mizuho raised its price target of the stock to $48 from $31 and reiterated an ‘Outperform’ rating. The price target increase is in response to the company’s expansion of its manufacturing capacity, as it seeks to meet growing demand for data center power.

The research firm anticipates that the company will achieve 2 GW of fuel cell manufacturing capacity by the end of next year. It would represent a three-year advancement from previous projections, which anticipated the milestone in 2029.

According to Mizuho, Bloom Energy’s Q2 operating margin coming in better than expectations strengthens the company’s prospects of scaling production following the expansion. The company’s sold megawatts are expected to increase at a 35% compound annual growth rate, up from a previous estimate of 20%, as a result of the expansion.

Bloom Energy Corporation (NYSE: BE) specializes in providing distributed power generation solutions utilizing solid oxide fuel cell technology. It manufactures and sells the Bloom Energy Server, a system that converts fuels like natural gas, biogas, and hydrogen into electricity without combustion.

1. SolarEdge Technologies, Inc. (NASDAQ:SEDG)

Year-to-date returns: 116.76%

Number of hedge fund holders: 29

SolarEdge Technologies, Inc. (NASDAQ:SEDG) is one of the best alternative energy stocks to buy right now. On August 8, Goldman Sachs reiterated a ‘Neutral’ rating on the stock and a $27 price target. The positive stance follows the company’s second-quarter financial results, which exceeded expectations.

Revenue in the quarter totaled $289.41 million compared to $273.63 million expected. While the company posted an adjusted net loss of $0.81 per share, it was better than the expected loss of $0.85 per share. The better-than-expected results came amid substantial storage volumes and improved gross margins. Additionally, SolarEdge provided guidance that indicated continued sequential growth in revenue and margin expansion. It anticipates Q3 2025 revenues of between $315 million and $355 million, with non-GAAP gross margin ranging from 15% to 19%.

SolarEdge also revised its free cash flow outlook, now expecting positive free cash flow for the year, a significant improvement from the previous breakeven forecast. Nevertheless, Goldman Sachs remains concerned that the company may face challenges in normalizing channel inventories in Europe.

SolarEdge Technologies, Inc. (NASDAQ:SEDG) is a global leader in intelligent energy technology, focusing on the development and supply of a wide range of solar energy solutions. Its core innovation is a DC-optimized inverter solution that maximizes energy production from solar panels. It also offers products such as power optimizers, energy storage solutions, and electric vehicle charging stations.

While we acknowledge the potential of SolarEdge Technologies, Inc. (NASDAQ:SEDG) to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SEDG and that has 100x upside potential, check out our report about this cheapest AI stock.

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