In this article, we explore the 11 Best Alternative Energy Stocks to Invest In According to Analysts.
The alternative energy sector entered 2026 with high optimism after enjoying a great run in 2025. Last year, the International Energy Agency (IEA) in its tenth edition of the World Energy Investment report, had predicted that global energy investment would reach $3.3 trillion. The lion’s share of the capital flow, at least $2.2 trillion, would go to clean technologies, the report detailed. Fast forward to 2026, a BloombergNEF analysis put the standalone energy transition investment figure at a record $2.3 trillion in 2025, up 8% from 2024. Electric transport, renewable power, and grid infrastructure led the surge, noted BloombergNEF in its annual Energy Transition Investment Trends (ETIT) report published on January 26.
According to Morningstar, this capital flow momentum happened when the sector was experiencing substantial repricing. Valerio Baselli, Morningstar’s Senior International Editor, wrote on January 26 that alternative energy stocks “staged a sharp comeback in 2025,” and outpaced global equities as financing conditions eased and electricity demand inflected. Baselli pointed to the Morningstar Global Renewable Energy Index which posted a 10% annual gain in 2025, besting the Morningstar Global TME Index’s 8% return. The index was up 7.74% year to date at writing, as of February 18, 2026, but the S&P 500 was down 0.03%.
Xavier Chollet, manager of Pictet’s Clean Energy Transition Fund, identified a structural shift in electricity demand as the strongest wind in the alternative energy sector’s back, especially in the United States. “We estimate that US electricity demand growth will at least quadruple,” he told Morningstar, “driven by AI data centers, the electrification of the economy and the reshoring of energy-intensive manufacturing such as semiconductors, batteries and electric vehicles.”
Nonetheless, the sector still has to surmount several headwinds. This is why, according to some expert observers, investors still demand a valuation discount and why performance is highly selective by sub-segment. Morningstar’s Baselli, for instance, noted that clean energy stocks are acutely sensitive to interest rates and policy shifts. Infrastructure constraints are also a huge issue. For instance, the US interconnection queue has swollen to 2,600 gigawatts with median wait times approaching five years. At the same time, permitting delays and grid bottlenecks create what Robeco’s Roman Boner calls the primary risk that “the energy transition, AI acceleration and electrification are moving faster than grids and regulatory frameworks can handle.”
Against this backdrop, this article identifies 11 alternative energy stocks that analysts believe can ride the headwinds and deliver good returns.
Our Methodology
To compile this list, we utilized various ETFs, including the ProShares S&P Kensho Cleantech ETF and Invesco WilderHill Clean Energy ETF, among others, to scan for alternative energy companies that are popular among elite hedge funds. For the hedge fund holding data, we used the Insider Monkey database for Q3 2025 13F filings. We then focused on stocks with upside potential of at least 20% as of February 17, 2026. The final list is presented in ascending order based on upside.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Alternative Energy Stocks to Invest In According to Analysts
11. First Solar Inc. (NASDAQ:FSLR)
Stock Upside: 26.39%
Number of Hedge Fund Holdings: 67
First Solar Inc. (NASDAQ:FSLR) is one of the best alternative energy stocks to invest in according to analysts. On January 27, TD Cowen shared findings from its solar industry survey which impacted several companies, including First Solar Inc. (NASDAQ:FSLR). TD Cowen noted that the sector reported a stronger-than-expected Q4 2025 and painted a broadly positive outlook for the US residential solar sector in 2026.
Respondents to the survey pointed to a recovery in residential solar demand, which is being fueled by a shift toward prepaid leases, said TD Cowen. This financing model became popular after the removal of the 25D residential clean energy tax credit.
The investment bank said the survey respondents projected a median residential solar storage attach rate of 60% for 2026. In other words, they expect more than half of new residential solar installations to be paired with a battery storage system. The firm noted that this attach rate projection is constructive for companies with a storage-first strategy, and added that the trend is underpinned by a 100% energy storage tax credit that remains in effect through 2033.
Separately, on January 22, KeyBanc maintained its Underweight rating and $150 price target on First Solar. KeyBanc, the corporate and investment banking arm of KeyCorp, cited concerns about what the firm described as a complex backdrop for the solar industry.
The firm pointed to First Solar’s year-to-date underperformance as part of its reasoning. It noted that the stock had declined 6.7% since the start of the year, compared with an 8.6% gain in the NEX Clean Energy Index over the same period. KeyBanc’s analysis focused on potential implications of upcoming regulatory changes for the solar industry, which it said underpins its bearish stance on the company.
First Solar Inc. (NASDAQ:FSLR) is a solar technology company headquartered in Tempe, Arizona. It manufactures thin-film cadmium telluride photovoltaic modules and provides utility-scale solar power plant development and related services.
10. FuelCell Energy Inc. (NASDAQ:FCEL)
Stock Upside: 26.58%
Number of Hedge Fund Holdings: 15
FuelCell Energy Inc. (NASDAQ:FCEL) is one of the best alternative energy stocks to invest in according to analysts. As of February 18, FuelCell Energy Inc. (NASDAQ:FCEL) carries a consensus Hold rating with a $9.33 average target, implying 26.58% upside potential.
On January 20, FuelCell and Sustainable Development Capital LLP (SDCL) announced a partnership to deploy up to 450 megawatts of advanced fuel-cell power systems at data centers and other mission-critical facilities worldwide.
The companies signed a letter of intent (LOI) that detailed the plan to combine FuelCell Energy’s power generation technology with SDCL’s expertise in financing and operating large-scale energy infrastructure. This partnership is a direct response to the explosive growth of AI and high-performance computing, the LOI stated.
According to FuelCell CEO Jason Few, “As AI and high-performance computing scale, power is no longer just about more capacity; it’s about a different architecture.” In other words, the executive believes AI-era data centers need more power and that they also need a completely different way of getting it.
For SDCL CEO Jonathan Maxwell, their interest is in “energy efficient infrastructure that delivers long-term value.” That way, they will be part of the core support system for the evolution to a cleaner energy system. “FuelCell’s technology aligns well with that vision, offering reliable, high-availability power with significantly lower emissions,” Maxwell said.
FuelCell Energy Inc. (NASDAQ:FCEL) is a fuel cell technology company headquartered in Danbury, Connecticut. It designs, manufactures, operates, and services power plants based on molten carbonate fuel cells. The company’s products include fuel cell systems for baseload power, combined heat and power, microgrids, biogas utilization, carbon capture, and hydrogen production through electrolysis.
9. Energy Vault Holdings Inc. (NASDAQ:NRGV)
Stock Upside: 29.87%
Number of Hedge Fund Holdings: 14
Energy Vault Holdings Inc. (NASDAQ:NRGV) is one of the best alternative energy stocks to invest in according to analysts. On February 11, Energy Vault Holdings Inc. (NASDAQ:NRGV) shared preliminary estimates for the December-ending quarter and fiscal year, Q4 FY2025. The company expects quarterly revenue to range between $150 million and $155 million, which is well above Wall Street’s expected $140.9 million. The figure is also a 355% jump year over year, and a roughly 5x sequential increase from Q3 2025’s $33.3 million.
The massive revenue surge was due to a rapid scaling of the company’s energy storage projects, particularly its “Asset Vault” strategy. Another growth factor was the expanding battery energy storage project in Australia, which had been gaining momentum through Q3 2025. The company’s contract revenue backlog had already ballooned to $920-$954 million heading into Q4.
Energy Vault expects quarterly gross profit between $28-$33 million, and gross margins of 18-22%, up from just 8% in Q4 2024. Adjusted EBITDA is expected to come in positive at $5-$10 million in Q4, which is a massive turnaround from a loss of $13.4 million in Q4 2024. Despite this, the company expects the net loss for the quarter to range between $9.5 million and $22.1 million, though this is a substantial reduction from the $61.8 million net loss in Q4 2024.
That same day, on February 11, Energy Vault priced a $140 million convertible senior notes offering. The offering is upsized from its originally planned $125 million, and the deal officially settled on February 17.
The company sold convertible notes in a private placement exclusively to qualified institutional buyers under Rule 144A. Energy Vault also gave initial purchasers an option to buy an additional $20 million worth of notes within 13 days of issuance. If exercised in full, it would bring total net proceeds to approximately $154.8 million. The company plans to use a portion of the proceeds, between $35 million and $45 million, to redeem existing convertible debt owed to YA II PN Ltd.
Energy Vault Holdings Inc. (NASDAQ:NRGV) is an energy storage company headquartered in Westlake Village, California, with additional operations in Lugano, Switzerland. It develops and deploys grid-scale storage solutions, including gravity-based systems that store energy by lifting and lowering composite blocks, as well as battery and hybrid storage platforms.
8. Plug Power Inc. (NASDAQ:PLUG)
Stock Upside: 34.05%
Number of Hedge Fund Holdings: 27
Plug Power Inc. (NASDAQ:PLUG) is one of the best alternative energy stocks to invest in according to analysts. On February 17, a class-action lawsuit was filed against Plug Power Inc. (NASDAQ:PLUG) and certain of its senior executives. The lawsuit, which was filed in the US District Court for the Northern District of New York, alleges that the company misled investors about its ability to access a $1.66 billion US Department of Energy (DOE) loan and to follow through on its planned hydrogen production expansion.
On January 16, Plug Power announced it had closed a $1.66 billion loan guarantee from the DOE’s Loan Programs Office. According to the company, the loan would be released in stages as it met certain conditions. The company said the loan would fund the construction of up to six large-scale green hydrogen production and liquefaction facilities across the US.
It turns out, however, that Plug Power’s executives knew, or should have known, that the conditions attached to the DOE loan made it far less certain that the funds would actually flow to the company, the lawsuit alleges. It added that building all six hydrogen plants was not as achievable as the company’s public statements suggested. The plaintiffs argue this information was deliberately withheld from investors. As a result, those who bought Plug Power shares during the relevant period suffered real financial losses because of these disclosures and are entitled to compensation, the lawsuit concluded.
Separately, on February 4, Plug Power said it has completed the first hydrogen fill of Hynetwork’s 32-kilometer pipeline in Rotterdam, Netherlands. The company delivered 32 tons of RFNBO-certified renewable green hydrogen alongside a custom unloading infrastructure built specifically for this commissioning operation.
Plug Power Inc. (NASDAQ:PLUG) is a hydrogen and fuel cell company. It develops and manufactures hydrogen fuel cell systems and electrolyzers that replace conventional batteries in electric equipment, vehicles, and stationary power applications.
7. ReNew Energy Global plc (NYSE:RNW)
Stock Upside: 45.06%
Number of Hedge Fund Holdings: 29
ReNew Energy Global plc (NYSE:RNW) is one of the best alternative energy stocks to invest in according to analysts. On February 16, ReNew Energy Global plc (NYSE:RNW) shared its Q3 FY2026 earnings and reported ₹31,372 million (about $349 million) in total quarterly revenue, up 48% year over year.
Power sales contributed much of this growth, which climbed to ₹18,290 million (about $204 million), up 22% from the previous quarter. This was supported by a 23.1% rise in electricity sold, which was 5,077 million kWh vs. 4,125 million kWh a year ago. Wind generation also jumped 52.2% year over year, and solar grew 7.9% year over year. Management said the growth reflects the benefit of newly commissioned capacity.
That said, revenue fell significantly on a sequential basis, down from ₹38,560 million in Q2 FY26. This was due to lower solar plant load factors caused by reduced solar irradiation during the quarter, and revenue lost on assets sold as part of the capital recycling program.
Quarterly EPS came in at ₹0.16 per share, massively beating the analyst consensus estimate of ₹-9.32 per share. Also, the quarter’s net loss narrowed to just ₹198 million (~$2.2 million), compared to ₹3,879 million (~$43 million) net loss in Q3 FY25. The near-breakeven result was possible despite the sequential revenue decline because adjusted EBITDA surged 54% year over year to ₹21,380 million (~$238 million).
ReNew updated its full-year guidance and now expects FY26 adjusted EBITDA to be in the ₹90-93 billion range and the cash flow to equity range of between ₹14 billion and ₹17 billion.
ReNew Energy Global plc (NYSE:RNW) is a renewable energy company headquartered in Gurgaon, Haryana, India. The company develops, owns, and operates utility-scale wind, solar, rooftop solar, and hydroelectric projects across India.
6. Blink Charging Co. (NASDAQ:BLNK)
Stock Upside: 47.60%
Number of Hedge Fund Holdings: 9
Blink Charging Co. (NASDAQ:BLNK) is one of the best alternative energy stocks to invest in according to analysts. On February 11, Blink Charging Co. (NASDAQ:BLNK) partnered with BetterFleet, a global SaaS company specializing in EV fleet charging management, to deliver a combined, end-to-end solution for organizations managing electric vehicle fleets across North America.
BetterFleet will offer an artificial-intelligence-powered platform that builds a “digital twin” of a fleet operator’s entire operation. It maps out vehicles, energy infrastructure, and routes in a virtual model. This will allow operators to simulate and optimize their setup before committing to hardware purchases or grid upgrades. The result, Blink said, will be lower odds of costly mistakes, which will minimize how much additional grid capacity they need to connect.
Once the planning phase is complete, that same digital model will feed directly into live operational systems. As such, vehicles will run as scheduled, and Blink will use charging assets efficiently.
Blink President and CEO Mike Battaglia described the deal as part of a broader push to build a full-service offering for corporate and fleet customers. He said that “these new, customer-centric capabilities take our white glove EV integration process for business to the next level.” That is, they provide “end-to-end support from procurement through post-installation EV fleet management.”
The combined product will target complex, mission-critical fleet operators, specifically in government, utilities, public transit, and logistics.
Blink Charging Co. (NASDAQ:BLNK) is an electric vehicle charging network operator headquartered in Bowie, Maryland. It designs, manufactures, and operates EV charging stations, offering hardware, software, and network services for residential, commercial, and public use.
5. QuantumScape Corporation (NYSE:QS)
Stock Upside: 54.11%
Number of Hedge Fund Holdings: 28
QuantumScape Corporation (NYSE:QS) is one of the best alternative energy stocks to invest in according to analysts. On February 11, QuantumScape Corporation (NYSE:QS) shared its Q4 2025 financial results, in which it showed that it is a pre-revenue company and that any cash inflows from customers come through customer billings. For the full-year, the customer billings totaled $19.5 million, all of which came in Q4.
Importantly, QuantumScape noted that due to the related-party nature of these billings, US GAAP required this amount to be recorded directly to shareholders’ equity, not as revenue on the income statement.
That said, EPS for the quarter came in at -$0.17, which aligned with Wall Street expectations, and marked an improvement from the -$0.22 EPS reported in Q4 2024. For the full year 2025, EPS came in at -$0.76, improving from -$0.94 in 2024. This bottom-line improvement came on the back of a sustained company-wide focus on cost discipline. For instance, the net loss for Q4 reduced to $100.1 million from $114.7 million in Q4 2024, and the full-year net loss improved 9% to $435.1 million.
The company said it achieved the cost improvements through value engineering on the Eagle Line (its manufacturing prototype), real estate footprint optimization, and deliberate capital efficiency measures, all of these without slowing technical progress.
QuantumScape updated its full-year 2026 guidance and now expects adjusted EBITDA loss between $250million and $275 million, which is essentially flat to modestly better than 2025’s loss. The company projects capital expenditures to fall in the $40-$60 million range up from $36.3 million in 2025.
QuantumScape Corporation (NYSE:QS) is a battery technology company headquartered in San Jose, California. It develops solid-state lithium-metal batteries designed primarily for electric vehicles.
4. Lucid Group Inc. (NASDAQ:LCID)
Stock Upside: 61.45%
Number of Hedge Fund Holdings: 21
Lucid Group Inc. (NASDAQ:LCID) is one of the best alternative energy stocks to invest in according to analysts. On February 11, Lucid Group Inc. (NASDAQ:LCID) hosted an intimate live event in Berlin called The Seven Suite. The company used the occasion to introduce the Lucid Gravity SUV to European audiences.
The company stated that the goal was to let audiences feel Lucid Gravity’s character through atmosphere and emotion rather than through spec sheets or test drives. Lawrence Hamilton, President of Lucid Europe, said: “The Seven Suite captures the essence of what drives us — transforming advanced technology into something deeply human. It’s not about spectacle, but about connection…”
Meanwhile, on January 29, Lucid announced that its Air Grand Touring sedan achieved the longest driving range of any vehicle tested during the 2026 NAF Winter Test in Norway. The test is organized annually by the Norwegian Automobile Federation (NAF) and Motor.no.
The Lucid Air Grand Touring covered 520 kilometers (323 miles) on a single charge, with 1% battery remaining at the end. The route ran from Oslo’s city streets through mountain roads, highways, and rural secondary roads. There were no charging stops until the car could no longer maintain posted speed limits. Of the 24 EVs tested, the next closest competitor to Lucid’s was the Mercedes-Benz CLA, which covered 421 km.
Lucid Group Inc. (NASDAQ:LCID) is an electric vehicle manufacturer headquartered in Newark, California. The company designs, develops, and produces luxury EVs. Its flagship model is the Lucid Air sedan, assembled at its Casa Grande, Arizona facility.
3. Amprius Technologies Inc. (NASDAQ:AMPX)
Stock Upside: 76.35%
Number of Hedge Fund Holdings: 30
Amprius Technologies Inc. (NASDAQ:AMPX) is one of the best alternative energy stocks to invest in according to analysts. On February 3, Amprius Technologies Inc. (NYSE:AMPX) partnered with Nanotech Energy, a U.S.-based advanced lithium-ion battery developer, to manufacture its silicon-anode battery cells. The deal makes Nanotech Energy Amprius’ first-ever domestic manufacturing partner.
According to Amprius, the deal was necessary because of its defense customer base. The move is in reaction to the recently updated National Defense Authorization Act requiring all defense-related hardware to be sourced and made locally. The product being manufactured under this agreement is the Amprius SA128. This is a 21700 cylindrical silicon-anode cell with a capacity of 6.8 Ah and a specific energy of 320 Wh/kg.
On the same day, February 3, Amprius disclosed in an SEC filing that it terminated its lease for a large industrial facility in Brighton, Colorado. The move was effected on January 31, and the company paid a $20 million termination fee.
The Brighton facility covered approximately 774,155 square feet and was intended to serve as a major domestic manufacturing site for Amprius. The lease had been signed just 19 months earlier, and was originally set to run for 15 years.
Separately, on January 29, Needham analyst Austin Bohlig initiated coverage on Amprius with a Buy rating and a price target of $20. Bohlig described Amprius as a key pure-play battery supplier to the unmanned aerial systems (UAS) sector, and noted that roughly 80% to 90% of the company’s revenues come from that segment.
The analyst said he believes the UAS market is in the early stages of what he called a global, multi-year UAS supercycle. This cycle, said Bohlig, is driven by growing demand from both the defense and commercial sectors, and that it has created a multi-billion-dollar total addressable market.
Amprius Technologies Inc. (NASDAQ:AMPX) is a battery manufacturer headquartered in Fremont, California. The company develops high-energy density lithium-ion batteries that use proprietary silicon nanowire anode technology, enabling longer range, faster charging, and higher payload capacity compared to conventional lithium-ion cells.
2. EVgo Inc. (NASDAQ:EVGO)
Stock Upside: 119.38%
Number of Hedge Fund Holdings: 27
EVgo Inc. (NASDAQ:EVGO) is one of the best alternative energy stocks to invest in according to analysts. On January 27, EVgo Inc. (NASDAQ:EVGO) said it plans to roll out North American Charging Standard, or NACS, connectors across its network. Also known as SAE J3400, the connector type was originally developed by Tesla and has since been adopted as the US industry standard. EVgo’s existing network uses Combined Charging System (CCS) connectors that are incompatible with NACS vehicles unless an adapter is used.
EVgo intends to install the new NACS stalls in cities where NACS-equipped EVs are already in large numbers. This includes San Francisco, Detroit, Dallas, Chicago, Phoenix, Orlando, Las Vegas, Houston, and Austin. The company said that most charging locations will receive two to four NACS connectors per site.
Separately, on January 13, EVgo detailed plans to expand its long-running partnership with Kroger. Kroger is the largest grocery chain in the US by revenue, and the partnership involves the retailer hosting EVgo’s fast-charging stalls.
EVgo said it plans to install at least 150 fast-charging stalls per year through 2035. The company detailed that each eligible Kroger site will receive up to 16 high-power fast-charging stalls. Each will be sized to deliver a full charge in as little as 15 minutes.
The expansion covers the full family of Kroger-owned banners; the eligible locations include Foods Co., Fred Meyer, Fry’s Food Stores, Harris Teeter, King Soopers, and Smith’s Food and Drug.
EVgo Inc. (NASDAQ:EVGO) is an electric vehicle charging company headquartered in Los Angeles, California. It owns and operates one of the largest public fast-charging networks in the United States, with stations located in major metropolitan areas and along highways.
1. SunPower Inc. (NASDAQ:SPWR)
Stock Upside: 268.93%
Number of Hedge Fund Holdings: 18
SunPower Inc. (NASDAQ:SPWR) is one of the best alternative energy stocks to invest in according to analysts. On February 5, SunPower Inc. (NASDAQ:SPWR) said it granted 850,000 restricted stock units to two key employees from Cobalt Power Systems, Inc. The inducement was a direct incentive for the employees to join SunPower as part of its acquisition of their company.
Cobalt is a California-based solar design and installation company known for building large, high-end residential solar systems. SunPower signed a letter of intent to acquire it in an all-equity deal worth $12 million on January 16. The company will continue to operate as a standalone subsidiary.
In a different update, on February 4, Northland analyst Gus Richard reaffirmed an Outperform rating and a $5.40 price target on SunPower. Northland’s reiteration was based in part on the company’s track record of positive operating income over the past four consecutive quarters, which the analyst said demonstrates consistent financial performance.
The analyst also pointed to SunPower’s significant expansion of its geographic footprint over the past year. He noted that the company had expanded its sales coverage from 22 to 45 states, with particularly notable growth in the three largest solar markets in the United States. This expansion, said Richard, contributed to what he described as an impressive 657% growth in revenues over the trailing twelve months.
Richard highlighted rising electricity demand and increasingly extreme weather events as structural tailwinds for the residential solar sector. He argued these trends are making electricity in the US more expensive and less reliable, and that these conditions are favorable for solar providers like SunPower.
SunPower Inc. (NASDAQ:SPWR) is a solar energy company headquartered in Richmond, California. It designs and manufactures high-efficiency solar panels and provides integrated solar and storage solutions for residential and commercial customers.
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