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. 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. provides solar tracker systems, software, and engineering services that help solar power installations improve energy production by optimizing panel orientation.
9. OPAL Fuels Inc. (NASDAQ:OPAL)
Number of Hedge Fund Holders: 8
OPAL Fuels Inc. (NASDAQ:OPAL) is one of the best renewable energy penny stocks to buy.
On March 9, 2026, OPAL Fuels announced that it had closed a new $180 million preferred stock facility with an affiliate of its majority shareholder, Fortistar. At the closing, the company issued $120 million under the facility, with the remaining $60 million available for future drawdowns.
The company said about $100 million of the initial funding was used to fully redeem the Series A Preferred Units previously owned by Mendocino Capital, LLC, a wholly owned subsidiary of NextEra Energy, Inc. The remaining funds may be used for general corporate purposes, including working capital, capital expenditures, and project-level financing.
Management said the financing would support OPAL Fuels’ next stage of growth by helping fund the development and construction of new renewable natural gas projects and fueling infrastructure for heavy-duty transportation. In the related 8-K, OPAL Fuels said the new Series A Preferred Units carry preferred quarterly distributions of 12% per annum, compounded quarterly.
OPAL Fuels Inc. is a producer and distributor of renewable natural gas for heavy-duty trucking and other transportation markets. The company also develops and operates RNG production projects and fueling infrastructure across the United States.
8. Gevo, Inc. (NASDAQ:GEVO)
Number of Hedge Fund Holders: 10
Gevo, Inc. (NASDAQ:GEVO) is one of the best renewable energy penny stocks to buy.
On March 5, 2026, Gevo reported fourth-quarter and full-year 2025 financial results and paired them with a business update centered on its Gevo North Dakota platform. The company posted fourth-quarter revenue of $45 million and full-year revenue of $161 million. Loss from operations narrowed to $2.2 million in the quarter, while non-GAAP adjusted EBITDA reached $7.7 million, marking Gevo’s third straight quarter of positive adjusted EBITDA. Gevo also generated $20 million of positive operating cash flow in the fourth quarter and ended the year with $117 million in cash, cash equivalents, and restricted cash.
The North Dakota asset was a key part of the update. Gevo said the plant produced a record 69 million gallons of low-carbon ethanol in 2025, up 3% from 67 million gallons in 2024. Management also approved a capital plan to expand Gevo North Dakota’s ethanol capacity to 75 million gallons per year, while aiming to produce more co-products, improve energy efficiency, capture more carbon dioxide, and strengthen operational reliability. The company said those projects are expected to begin delivering returns in early 2027.
Management tied the stronger results to execution across fuels, carbon markets, and tax credit monetization. Gevo sold $52 million of production tax credits in 2025 related to Gevo North Dakota and received about $41 million of cash proceeds during the year. It is now targeting neutral-to-positive cash flow from operations for 2026 and has reaffirmed its near-term goal of reaching a run-rate non-GAAP adjusted EBITDA of about $40 million per year.
Gevo, Inc. is a renewable fuels and carbon management company focused on low-carbon ethanol, renewable natural gas, carbon removal credits, and sustainable aviation fuel development.
7. Montauk Renewables (NASDAQ:MNTK)
Number of Hedge Fund Holders: 10
Montauk Renewables (NASDAQ:MNTK) is one of the best renewable energy penny stocks to buy.
On March 11, 2026, Montauk Renewables reported full-year 2025 results showing revenue of $176.4 million, essentially flat from $175.7 million in 2024, as a 29.0% drop in average realized RIN pricing to $2.33 offset the stronger natural gas index pricing, which rose 51.1%, and higher RIN volumes sold. The company sold 44.1 million RINs in 2025, up 20.5% year over year, while RNG production increased 1.0% to 5.6 million MMBtu when adjusted for the prior-year sale of an RNG facility.
Profitability weakened. Net income fell 82.0% to $1.7 million, operating income dropped 94.7% to $0.9 million, and adjusted EBITDA declined 16.5% to $35.6 million. Management attributed the pressure mainly to higher operating and maintenance costs at RNG facilities, including increased utility expense, preventative maintenance, wellfield operational enhancement programs, media change-outs, and disposal costs at Apex, Atascocita, Rumpke, and Raeger. Renewable electricity operating and maintenance expense also rose, driven mainly by non-capitalizable costs at the Montauk Ag Renewables project.
For 2026, Montauk expects RNG revenue of $175 million to $190 million on production of 5.8 million to 6.1 million MMBtu. It also guided for renewable electricity revenue of $35 million to $41 million and production of 195 thousand to 207 thousand MWh, with the increase tied to the anticipated commercial operation of the Montauk Ag Renewables project in North Carolina.
Montauk Renewables, Inc. is a renewable energy company focused on recovering biogas and converting it into renewable natural gas and renewable electricity. Headquartered in Pittsburgh, the company operates landfill methane-fueled projects across multiple U.S. states.
6. Stem, Inc. (NYSE:STEM)
Number of Hedge Fund Holders: 11
Stem, Inc. (NYSE:STEM) is one of the best renewable energy penny stocks to buy.
On March 10, 2026, UBS lowered its price target on Stem to $12 from $18 but kept a Neutral rating, citing a slower software sales outlook. The firm also reduced its adjusted EBITDA estimates for 2026, 2027, and 2028 to $10 million, $22 million, and $41 million, respectively, from prior forecasts of $17 million, $29 million, and $50 million. The revised target followed Stem’s fourth-quarter 2025 results, which the company had released on March 4.
Stem reported fourth-quarter 2025 revenue of $47.2 million, down 15% year over year, which the company said was mainly due to sharply lower battery hardware sales as part of its software-focused strategy. At the same time, software, services, and edge hardware revenue rose 62% to $46.5 million. Fourth-quarter non-GAAP gross margin improved to 45% from 36%, adjusted EBITDA rose to $5.5 million from $4.2 million, and net loss narrowed to $16.0 million from $51.1 million.
For full-year 2025, revenue increased 8% to $156.3 million, while software, services, and edge hardware revenue climbed 25% to $141.4 million. Stem also posted full-year adjusted EBITDA of $6.7 million, compared with a loss of $22.8 million in 2024, and ended the fourth quarter with $48.9 million in cash and cash equivalents.
Stem, Inc. provides software, services, and energy management technology for clean energy assets, helping customers monitor, optimize, and operate storage, solar, and other distributed energy systems across global markets.
5. Tigo Energy, Inc. (NASDAQ:TYGO)
Number of Hedge Fund Holders: 12
Tigo Energy, Inc. (NASDAQ:TYGO) is one of the best renewable energy penny stocks to buy.
On March 9, 2026, Tigo Energy said it entered a strategic partnership with CELTEC, a regional distributor of renewable energy products, to expand distribution of Tigo Rapid Shutdown solutions, optimizers, and other products across Central America and the Caribbean. The company said the deal is aimed at improving safety and regulatory compliance as solar adoption grows across those markets.
Tigo said the partnership will help broaden access to technologies aligned with NEC 2017 and NEC 2020 requirements, which are already mandatory in Panama and are being adopted more widely across Central American and Caribbean markets. CELTEC CEO Darío Torres said the implementation of NEC 2020 changes how solar projects are designed, especially regarding first-responder safety.
A key product of the collaboration is Tigo’s TS4-A-2F rapid shutdown solution. The company said the product complies with module-level shutdown requirements under NEC 2017/2020 and carries IEC, UL, and UL PVRSS certifications. Tigo also said the TS4-A-2F connects to two modules and can reduce installation time while enabling up to 16% fewer connections in a 14-panel string versus single-channel MLPE systems.
Founded in 2007, Tigo Energy, Inc. develops smart hardware and software for solar systems, including module-level power electronics, monitoring platforms, inverters, and battery storage products for residential, commercial, and utility-scale applications.
4. Clean Energy Fuels Corp. (NASDAQ:CLNE)
Number of Hedge Fund Holders: 21
Clean Energy Fuels Corp. (NASDAQ:CLNE) is one of the best renewable energy penny stocks to buy.
On March 4, 2026, Clean Energy Fuels Corp. said it signed and extended a series of renewable natural gas-related agreements across trucking, refuse, transit, municipal, and airport fleets in the U.S. The company said the deals cover both RNG supply and fueling infrastructure services, reflecting continued adoption of the fuel across multiple end markets.
Among the announced agreements, Ecology Transportation Services will fuel its 150-vehicle RNG trucking fleet through Clean Energy under a deal expected to cover about 2.1 million gallons annually across California, Arizona, and Nevada. WMATA also extended its relationship with the company under a new operations and maintenance contract tied to five million gallons of fuel for more than 400 buses.
The release also said Clean Energy will provide RNG to 78 Arlington Transit buses, totaling roughly 750,000 gallons annually, while Phoenix-area transit infrastructure maintained by the company supports 335 natural gas buses and dispenses about 4.7 million gallons per year. Other agreements mentioned Recology, Scottsdale, Nashville International Airport, and Fort Smith. Senior Vice President Chad Lindholm said fleets are choosing RNG because it is clean, affordable, domestically produced, and supported by an established fueling network.
Clean Energy Fuels Corp. is a U.S. provider of renewable natural gas and fueling solutions for transportation fleets. The company operates fueling stations across the U.S. and Canada and also develops RNG production facilities at dairy farms.
3. SunPower Inc. (NASDAQ:SPWR)
Number of Hedge Fund Holders: 22
SunPower Inc. (NASDAQ:SPWR) is one of the best renewable energy penny stocks to buy.
On March 11, 2026, SunPower disclosed in an SEC filing that it had entered into a purchase agreement with YA II PN, Ltd., dated March 6, 2026, under which the investor agreed to buy a convertible debenture with a principal amount of $10 million. The purchase price was set at 90% of that amount, meaning SunPower is raising less cash than the debenture’s face value.
The debenture carries a 0% annual interest rate unless an event of default occurs, in which case the rate rises to 18%. It matures on March 6, 2027, unless extended at the holder’s option. The repayment schedule attached to the debenture shows five monthly principal installments of $2 million, due from May 5, 2026, through September 5, 2026, with a 3% payment premium on those installments, for total scheduled payments of $10.3 million.
SunPower also signed a registration rights agreement tied to the deal. Under that agreement, the company is required to file the initial resale registration statement by April 30, 2026. The filing also noted that the transaction is subject to an exchange cap of 22,381,878 shares, unless stockholders approve issuance above that limit under Nasdaq rules.
SunPower Inc. is a U.S.-based solar company focused on residential solar, battery storage, and related energy solutions.
2. Energy Vault Holdings, Inc. (NYSE:NRGV)
Number of Hedge Fund Holders: 24
Energy Vault Holdings, Inc. (NYSE:NRGV) is one of the best renewable energy penny stocks to buy.
On March 3, 2026, Energy Vault said it closed an upsized $150 million financing in convertible senior notes, above the $125 million size it had initially announced. The company said the deal was aimed at strengthening its balance sheet and supporting execution of its own-and-operate strategy.
Energy Vault also said it used part of the proceeds to repay existing higher-cost debt. Specifically, on February 19, 2026, the company redeemed about $45 million in aggregate principal amount of senior unsecured convertible debentures previously issued to YA II PN, Ltd., an affiliate of Yorkville Advisors. According to the release, it removed the principal from Energy Vault’s balance sheet and improved future financial flexibility.
The company added that it entered into a capped call derivative transaction at a 100% premium to the pre-announcement closing price of $4.06, resulting in an effective future conversion price of $8.12 per share. Energy Vault said the structure was designed to reduce potential dilution.
Management linked the financing to what it described as strong preliminary 2025 results, including above-consensus revenue, gross margin, and total cash, as well as progress toward profitability. Chairman and CEO Robert Piconi said the company achieved positive adjusted EBITDA in the fourth quarter and increased cash and liquidity sequentially through the year. Energy Vault said it would provide full fourth-quarter and full-year 2025 results, along with its 2026 outlook, on March 17, 2026.
Energy Vault Holdings, Inc. develops, deploys, and operates utility-scale energy storage systems. Its offerings include battery, gravity, and green hydrogen storage technologies, supported by an energy management software and integration platform for utilities, independent power producers, and large industrial users.
1. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Funds: 29
Plug Power Inc. (NASDAQ:PLUG) is one of the best renewable energy penny stocks to buy.
On March 9, 2026, Jefferies cut its price target on Plug Power Inc. to $1.80 from $2.00 while maintaining a Hold rating, pointing to concerns about whether the company’s improving margin profile can be sustained. The note said Plug reiterated its expectation for positive EBITDA in 2026, but Jefferies still views that outlook as a “show me” story. The firm also said Plug’s fourth-quarter gross margin benefited partly from one-off items, even as it acknowledged better liquidity and expected performance support from material handling and electrolyzers in 2026.
For context, Plug reported fourth-quarter 2025 revenue of $225.2 million, up 17.6% from the prior-year quarter, while full-year 2025 revenue rose 12.9% to about $710 million. The company posted a positive fourth-quarter gross profit of $5.5 million, or 2.4% of sales, versus a gross margin loss of negative 122.5% a year earlier. Management said the improvement was driven by higher sales volume, a better mix, price increases on some offerings, fuel network enhancements, lower service cost per unit, and manufacturing efficiency gains tied to Project Quantum Leap.
Plug also ended 2025 with $368.5 million in unrestricted cash, said an asset monetization agreement is expected to generate more than $275 million, and reported that net cash used in operations fell 26.5% year over year to $535.8 million.
Plug Power Inc. develops hydrogen fuel cell systems, electrolyzers, hydrogen production infrastructure, and related solutions for material handling, industrial, and energy markets.
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