In this article, we will discuss: 11 Best Green Stocks to Buy According to Hedge Funds.
Green stocks are ownership stakes in businesses that engage in ecologically friendly operations, including pollution prevention, waste reduction, electric vehicles, and renewable energy.
President Donald Trump referred to wind and solar energy as “unreliable” and a threat to U.S. energy security in his executive order terminating subsidies for these sources, which caused solar stocks to plummet in early July 2025. The order limits safe harbor privileges until a “substantial portion” of facilities are constructed, eliminates tax benefits for clean power production and investment, and directs the Treasury to terminate them within 45 days. The burden of eliminating preferential programs for renewable energy fell to the Interior Department.
The Department of Energy cautioned in a report released the same day that blackout risks might rise 100-fold by 2030, with outage hours increasing from “single digits today to more than 800 hours per year” due to scheduled retirements of 104 GW of firm capacity and reliance on non-dispatchable sources.
With that said, here are the 11 Best Green Stocks to Buy According to Hedge Funds.
Our Methodology
We sifted through online rankings to form an initial list of the 11 Best Green Stocks to Buy According to Hedge Funds. From the resultant dataset, we chose 11 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1000 hedge funds in Q2 2025 to gauge hedge fund sentiment for stocks. We have used the stock’s market cap as of August 28 as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. ReNew Energy Global Plc (NASDAQ:RNW)
Number of Hedge Fund Holders: 24
ReNew Energy Global Plc (NASDAQ:RNW) has issued its second Annual Integrated Report, “Scaling New India’s Leap with Clean Energy Solutions: Innovating Sustainably,” to commemorate its 15th anniversary. The company’s Scope 1 and 2 emissions were reduced by 18.2% in FY25 compared to the baseline of FY22, surpassing its objective of 12.6%. Furthermore, it sourced 76% of its power from renewable sources, which is substantially higher than the 50% target. Meanwhile, ReNew Energy Global Plc (NASDAQ:RNW) produced 22 billion kWh, or 2% of India’s power, and saved 540 million liters of water, a 50% increase from the previous year.
ReNew Energy Global Plc (NASDAQ:RNW) was established in 2011 as a pure-play IPP and has since grown to become a global leader in decarbonization, with a commissioned portfolio of 10.7 GW and FY25 profits of INR 4.6 billion. It became the first renewable energy company in India to achieve a net-zero goal verified by the SBTi, achieved carbon neutrality for five years, and prevented 18.6 million tonnes of carbon emissions. The social impact reached 1.7 million lives, and women today comprise 16% of the workforce and 40% of board seats. It is among the Best Clean Energy Stocks.
10. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 27
Market Cap as of August 28: $2.01 billion
The worldwide automotive and industrial supplier Schaeffler and SolarEdge Technologies, Inc. (NASDAQ:SEDG) established a strategic alliance to install EV charging hardware and software at Schaeffler locations throughout Europe. Schaeffler plans to commission over 2,300 charging stations by 2030, starting at its Technology Center in Herzogenaurach, Germany. The project will help to achieve this goal.
The partnership expands on SolarEdge Technologies, Inc. (NASDAQ:SEDG)’s experience using solar technology to power Schaeffler rooftops. The deal calls for the firm’s Enterprise Service Group to supply EV charging hardware, software, and services as part of its ONE for C&I energy optimization platform. Wevo technology will be incorporated into these services. A specially designed application will streamline employee charging experiences. Chief of SolarEdge Technologies, Inc. (NASDAQ:SEDG)’s Commercial & Industrial Division, Naama Ohana, pointed out the collaboration as an example of how to use the latest technology to speed up client energy transitions.
SolarEdge Technologies, Inc. (NASDAQ:SEDG), a global leader in smart energy, provides solutions for PV, storage, EV charging, batteries, and grid services. It is one of the Best Clean Energy Stocks.
9. Ormat Technologies, Inc. (NYSE:ORA)
Number of Hedge Fund Holders: 27
Market Cap as of August 28: $5.58 billion
Ormat Technologies, Inc. (NYSE:ORA) secured a 25-year power purchase agreement extension with the Southern California Public Power Authority for 52MW from its Heber 1 geothermal facility, which will take effect in February 2026. The agreement guarantees the Imperial Irrigation District and LADWP a sustained supply of renewable energy through 2052.
Ormat Technologies, Inc. (NYSE:ORA)’s 91MW Heber complex includes the air-cooled Heber 1 power plant, which provides continuous carbon-free electricity. The plant will support California’s grid dependability and climate goals by providing electricity to more than 77,000 households in Los Angeles. Doron Blachar, CEO of Ormat Technologies, Inc. (NYSE:ORA), acknowledged the contribution geothermal energy makes to the state’s clean energy transformation. LADWP’s David Hanson, SCPPA Executive Director Daniel E. Garcia, and IID Chair Gina Dockstader stressed the significance of the agreement in guaranteeing stable, reasonably priced, renewable energy.
Ormat Technologies, Inc. (NYSE:ORA), a prominent vertically integrated geothermal corporation with a global portfolio of 1,558MW, is also venturing into solar PV and energy storage. It is ranked ninth on our list of the Best Clean Energy Stocks.
8. Clearway Energy, Inc. (NYSE:CWEN)
Number of Hedge Fund Holders: 33
Clearway Energy, Inc. (NYSE:CWEN) has launched a $100 million At-The-Market equity offering program, which includes an Equity Distribution Agreement with Morgan Stanley, BofA Securities, Citigroup, J.P. Morgan, and Wells Fargo Securities. The business may sell Class C common shares at market pricing on the New York shares Exchange. Proceeds will be utilized for capital expenditures, investments, acquisitions, and debt repayment, among other general business needs.
The offering was made subject to a prospectus supplement dated August 6, 2025, which was attached to the company’s Form S-3 registration statement (File No. 333-273804), which became effective on August 8, 2023. The program’s shares are authorized for NYSE listing.
Clearway Energy, Inc. (NYSE:CWEN) is one of the biggest owners of sustainable energy assets in the United States. Its 12 GW portfolio spans 27 states and includes 2.8 GW of dispatchable generation and 9.2 GW of wind, solar, and storage systems. It sponsors a diverse portfolio, which provides steady, growing dividends. It is among the Best Clean Energy Stocks.
7. Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 39
Market Cap as of August 28: $3.78 billion
Sunrun Inc. (NASDAQ:RUN) published Q2 2025 results showing Contracted Net Value Creation of $376 million ($1.64 per share), a 316% growth, and Aggregate Subscriber Value of $1.6 billion, up 40% year over year. The business generated $27 million in cash generation for the seventh straight quarter and reaffirmed its $200-$500 million 2025 forecast.
Sunrun Inc. (NASDAQ:RUN)’s storage attachment rate climbed from 54% to 70% in the previous year, and the number of new customers with storage rose by 50% year over year. Over 195,000 solar and storage systems, or 3.2 GWh of networked storage, have been installed by the company thus far. The firm completed a $431 million securitization in July, bringing the total for 2025 to $1.4 billion, repaying $21 million in recourse debt and decreasing 2026 Convertible Notes to $5.5 million outstanding. Furthermore, Sunrun Inc. (NASDAQ:RUN) and Tesla collaborated to offer a residential energy plan for Texas. Its 130,000+ home batteries generated 650 MW of dispatchable electricity this summer, including 340 MW during a June heat wave, preventing blackouts in various states and Puerto Rico. It is one of the Best Clean Energy Stocks.
6. Enphase Energy Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 39
Market Cap as of August 28: $4.91 billion
Enphase Energy Inc. (NASDAQ:ENPH) has launched its fourth-generation Enphase® Energy System, which includes the IQ® Battery 10C, IQ® Meter Collar, and IQ® Combiner 6C. Shipments of the system are now in progress and promise greater energy density, simpler installation. The IQ Battery 10C produces 7.08 kW of continuous power and 10 kWh of usable energy.
The new battery uses lithium iron phosphate chemistry for safety and longevity, and it can save up to 62% of wall space while delivering 34% more energy density than previous models. The IQ Meter Collar makes whole-home backup easier and makes installation less complicated, and the IQ Combiner 6C combines load control, solar, battery, and EV charging into a single container. The system supports the Domestic Content Bonus Credit with U.S. manufacturing and comes with a 15-year warranty. Installers Cutler Bay Solar Solutions, Atma Energy, and Allterra Solar complimented the system for its effectiveness, affordability, and capacity to drastically reduce installation timelines. It is ranked sixth on our list of the Best Clean Energy Stocks.
5. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 43
Bloom Energy Corporation (NYSE:BE) recorded its third consecutive quarter of record profits and revenue with Q2 2025 revenue of $401.2 million, up 19.5% from $335.8 million the previous year. The business reported non-GAAP operating income of $28.6 million and expanded its gross margin from 20.4% to 26.7%.
Bloom Energy Corporation (NYSE:BE) also revealed that its non-GAAP services were profitable for the sixth consecutive quarter. Revenue from products and services climbed 25.9% to $351.1 million, showing rising demand. Operating loss decreased from $23.1 million to $3.5 million, with non-GAAP numbers pointing to an improvement in profitability. The business reiterated its full-year revenue and profit estimate and announced plans to increase production capacity from 1 GW to 2 GW by 2026. Bloom Energy Corporation (NYSE:BE) and Oracle signed a partnership on July 24, 2025, to provide power for AI data centers. CAO Maciej Kurzymski noted excellent performance in a market that is changing quickly, while CEO KR Sridhar commented on demand driven by AI growth. It is one of the Best Clean Energy Stocks.
4. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders: 59
Eaton Cummins Automated Transmission Technologies announced the construction of its 500,000th Endurant automated transmission, a significant milestone since the product’s launch in 2017. The feat was celebrated at the Kenworth Truck Plant in Chillicothe, Ohio, where the milestone unit was handed to longstanding customer Werner Enterprises.
Werner was the first to use the Endurant transmission, which is renowned for its lightweight design, longevity, and fuel efficiency. The product portfolio has grown over time to include Endurant HD, HD V, HD N, XD, XD Pro, and XD N, catering to both vocational and on-highway markets.
Eaton Cummins, a 50/50 joint venture between Eaton and Cummins Inc. (NYSE:CMI), stressed the milestone as evidence of its commitment to innovation and customer trust. Scott Reed, SVP of Maintenance at Werner, and Josh Mejeur, Regional Director at Eaton Cummins, addressed the value of their four-decade partnership during the ceremony. It is among the Best Clean Energy Stocks.
3. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 66
JPMorgan maintained its Overweight rating on NextEra Energy, Inc. (NYSE:NEE) and lifted its price goal from $86 to $87 on August 22. The modification is in response to JPMorgan’s updated model reflecting the “constructive” Florida Power and Light rate settlement filing, which supports the firm’s optimistic outlook for the firm’s regulated utility operations.
NextEra Energy, Inc. (NYSE:NEE)’s high-quality regulated utility in Florida, combined with its rapidly growing renewable energy business, provides investors with the best of both worlds: a reliable dividend and industry-leading renewable energy growth opportunity.
NextEra Energy, Inc. (NYSE:NEE)’s managed utility, Florida Power & Light, is Florida’s largest rate-regulated utility. The company possesses 36 gigawatts of generation and provides electricity to more than 6 million consumer accounts throughout Florida. FP&L accounts for approximately 70% of its consolidated operating profitability. NextEra Energy Resources, the renewable energy business, generates and sells power in the United States and Canada, with over 37 GW of generation capacity from natural gas, nuclear, wind, and solar. It is ranked third on our list of the Best Clean Energy Stocks.
2. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 68
Guggenheim analyst Joseph Osha upgraded First Solar, Inc. (NASDAQ:FSLR) price objective to $287 from $202 on August 22, keeping a Buy rating.
The updated value reflects Guggenheim’s revised analysis, which is supported by recent policy developments and industry checks that show First Solar, Inc. (NASDAQ:FSLR)’s stronger fundamentals. Osha’s higher goal displays confidence in the company’s standing in the solar business, where growth is projected to be driven by favorable industry trends and policy momentum.
First Solar, Inc. (NASDAQ:FSLR) is a major producer of solar panels based in the Western Hemisphere and the global leader in thin-film solar panel technology. The firm uses thin-film cadmium telluride technology, although a large portion of the solar business depends on crystalline silicon technology. The business has been able to survive solar cycles when its rivals have collapsed because of the strength of its balance sheet. It is one of the Best Clean Energy Stocks.
1. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 79
John Eade, an Argus analyst, maintained his Buy rating on Constellation Energy Corporation (NASDAQ:CEG) and increased his price target from $350 to $375 on August 12. The change comes after the business’s Q2 adjusted results, which showed a 14% year-over-year growth. Eade noted the firm’s potential for expansion, especially its anticipated later-this-year acquisition of Calpine, a gas generation company.
Constellation Energy Corporation (NASDAQ:CEG) has shown solid operational momentum, as evidenced by its most recent quarterly results, which highlight double-digit growth. The business’s ability to improve profitability in a competitive energy landscape can be seen by the 14% year-over-year jump in adjusted Q2 performance. The company is positioned for diverse expansion as a result of the impending acquisition of Calpine. It marks a strategic shift to integrate gas generation assets and strengthen its portfolio. The jump in Argus’s target price from $350 to $375 shows the company’s faith in Constellation Energy Corporation (NASDAQ:CEG)’s financial future and its capacity to use acquisitions to generate long-term value.
While we acknowledge the potential of CEG 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 CEG and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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