In this article, we will look at the Best Renewable Energy Penny Stocks to Buy.
The renewable energy industry has moved from a policy-supported niche to a larger part of the global power system, and that shift has widened the field for both smaller public companies and large developers, as noted by the IEA. In earlier phases, IEA noted, growth was closely tied to subsidies, feed-in tariffs, and national decarbonization targets. More recently, the industry has also been driven by economics: lower solar module costs, wider corporate power demand, higher retail electricity prices in some markets, and the growing need for storage, grid equipment, and distributed generation.
By the end of 2024, global renewable power capacity had reached 4,448 gigawatts, according to IRENA. The agency said 585 GW was added in 2024 alone, up 15.1% year over year, with solar accounting for 452 GW of that increase and wind contributing 113 GW. Renewables also accounted for 92.5% of total power capacity additions in 2024, up from 85.8% in 2023. Separately, Ember reported that low-carbon sources supplied 40.9% of global electricity generation in 2024, reflecting how renewables are no longer a marginal part of the system.
That scale matters for smaller listed companies, including penny stocks, because industry growth is no longer limited to headline utility-scale projects. The IEA expects global renewable power capacity to increase by almost 4,600 GW between 2025 and 2030, with solar representing nearly 80% of the expansion. It also said distributed solar applications, including residential, commercial, industrial, and off-grid systems, are expected to account for 42% of overall PV expansion. That creates space for smaller firms tied to components, local project development, balance-of-system equipment, storage, and specialized services, even as the largest capacity additions remain concentrated in major markets and large incumbents.
The industry’s near-term direction still points to growth, but not evenly. The IEA, in its Renewables 2025 analysis, said renewable capacity is expected to grow faster in more than 80% of countries during 2025-2030 than in the prior five-year period, while warning that grid integration, financing, permitting, and supply-chain concentration remain major constraints. In other words, the market is still expanding, but execution risk remains high, which is especially relevant for smaller renewable names trading at penny-stock valuations.
Methodology
We used online screeners to narrow down on renewable energy penny stocks (share price below $5) and limited our selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. We then ranked them by the number of hedge funds holding stakes in them as of Q4 2025. These stocks are also popular among Wall Street analysts.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
11. XCF Global, Inc. (NASDAQ:SAFX)
Number of Hedge Fund Holders: 4
XCF Global, Inc. (NASDAQ:SAFX) is one of the best renewable energy penny stocks to buy.
On March 10, 2026, the company said it had received stockholder approval at its March 6 special meeting to remove the share cap that had limited the number of shares EEME could buy under an existing term sheet. That approval allows EEME to purchase the remaining shares it had committed to acquire as part of XCF’s ongoing capital raise.
XCF said EEME had already bought 38,000,000 common shares for $3,800,000 before the update. The company expects EEME to buy the remaining 62,000,000 shares for a total investment of $6,200,000, split into two equal tranches, subject to closing conditions. XCF also said the first merger closing is expected in March 2026, with the second targeted by March 31, 2026, if those conditions are met.
The company added that, after the second closing, the combined business is expected to retain the XCF Global name and Nasdaq ticker symbol SAFX. It also said DevvStream shareholders would receive contingent value rights tied to 20% of the net proceeds from certain legacy DevvStream commercial claims.
XCF Global, Inc. (NASDAQ: SAFX) is a sustainable aviation fuel company focused on helping decarbonize air travel. Its New Rise Renewables Reno facility is operational and has permitted nameplate production capacity of 38 million gallons per year.
10. FTC Solar, Inc. (NASDAQ:FTCI)
Number of Hedge Fund Holders: 7
FTC Solar, Inc. (NASDAQ:FTCI) is one of the best renewable energy penny stocks to buy.
On March 10, 2026, FTC Solar said it signed a five-year, 1,000-megawatt expansion to its tracker supply agreement with Strata Clean Energy, deepening an existing relationship between the two companies. The new agreement is scheduled to take effect in the second half of 2027.
The deal builds on the companies’ earlier three-year, 500 MW tracker supply agreement that began in September 2024, under which FTC Solar became Strata’s preferred supplier. FTC Solar said the expansion followed the successful completion of the initial 500 MW of projects using its Voyager 2P solar tracker technology.
The announcement came just days after FTC Solar reported fourth-quarter 2025 financial results on March 5. Revenue rose to $32.9 million in the quarter, up 26.2% from the prior quarter and 148.9% from a year earlier. The company also said gross margin improved by about 1,500 basis points year over year, while management pointed to stronger commercial traction, a larger project pipeline, and continued recovery in its business.
FTC Solar, Inc. (NASDAQ:FTCI) provides solar tracker systems, software, and engineering services that help solar power installations improve energy production by optimizing panel orientation.
