In this article, we will take a look at the 12 Best Renewable Energy Stocks to Buy in 2025.
Governments are focused on clean energy worldwide. In 2024, a record 30 GW of utility-scale solar power to the U.S. grid was produced, accounting for almost 61% of capacity additions last year. The expansion of green energy holds much promise for clean energy stocks in 2025 and ahead.
Also Read: 10 Best Clean Energy Stocks to Buy According to Billionaires
President Trump’s focus on domestic energy production is expected to boost local production. Solar and storage energy, which will account for 84% of new grid capacity in 2024, are major sources of realizing this vision. According to the U.S. Energy Information and Administration (EIA), around 63 GW of new utility-scale electric generating capacity is expected to be added to the U.S. power grid in 2025. This will mark a 30% growth from 2024. Solar and battery storage combined account for 81% of the expected total capacity additions, with solar driving 50% of the growth.
In 2025, the buildout of big solar and battery plants is estimated to reach an all-time high. The wind projects will also add to the new power capacity in renewable and battery energy sources, which are expected to reach 93%. EIA expects 7.7 GW of wind energy capacity to be added to the U.S. grid in 2025.
“Renewables will be the biggest beneficiary of growing electricity demand because they are the cheapest option, and [electricity buyers] will always absorb as much of the cheapest source of power before turning to more expensive forms of power,” Bruce Flatt, Brookfield’s chief executive, told Wall Street analysts.
According to IEA, renewable energy consumption in the power, transport, and heat sectors is expected to rise by over 60% from 2024 to 2030. This reflects the share of renewables in final energy consumption to reach almost 20% by 2030. The growing electricity demand will also drive the production of renewable energy. Electricity generation from clean sources makes up almost three-quarters of the overall growth, driven by policy changes in more than 130 countries.
With that, let’s take a look at the 12 Best Renewable Energy Stocks to Buy in 2025.
Solar panels in an agricultural field, highlighting the company’s commitment to renewable energy.
Our Methodology
We used the Finviz screener and renewable energy ETFs to shortlist renewable energy companies with a market capitalization of more than $500 million. We then looked for renewable stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey’s database, updated as of Q4 2024. Finally, the 12 best renewable energy stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them.
Why are we interested in the stocks that hedge funds and billionaire investors 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).
12 Best Renewable Energy Stocks to Buy in 2025
12. DTE Energy Company (NYSE:DTE)
No. of Hedge Fund Holders: 35
DTE Energy Company (NYSE:DTE) is an electric and gas utility service provider focused on renewable energy investments and carbon emission reductions. The company serves over three million customers in Michigan. DTE has positioned itself as a leader in sustainable energy in the Midwest.
DTE Energy Company (NYSE:DTE) just made a huge development, announcing the launch of its 100 MW solar array near Coldwater, Michigan. After the solar park’s completion in 2026, it will help Ford Motor Company to meet its needs for 100% carbon-free and renewable energy. Ford’s purchase of 650 MW of clean energy from DTE is the largest renewable energy purchase from a utility in the U.S.
DTE Energy Company (NYSE:DTE) continues to invest in its renewable energy projects. The company currently has 20 wind parks and 34 solar parks in Michigan. DTE has invested nearly $4.6 billion in its renewable energy infrastructure since 2009. In the next few years, the company plans to invest another $4 billion in renewable energy. The company plans to complete six solar parks in 2025, with three of them coming online in the first half of the year. These parks will generate a total of 800 MW of clean energy. These developments will take DTE closer to net-zero carbon emissions.
11. Fluence Energy, Inc. (NASDAQ:FLNC)
No. of Hedge Fund Holders: 36
Fluence Energy, Inc. (NASDAQ:FLNC) offers energy storage products and optimization solutions for renewables and storage. The company operates in over 47 markets worldwide, providing a renewable energy ecosystem to drive the clean energy transition, including modular, scalable energy products and AI-enabled software, among others. The company offers its products and services to commercial, industrial, and utility customers.
Fluence Energy, Inc.’s (NASDAQ:FLNC) rating was recently downgraded from Overweight to Equal Weight by Christine Cho from Barclays. The analyst lowered the price target from $9 to $5 per share following rising concerns over the competitive landscape and the immediate effect of retaliatory tariffs. The downgrade also comes as Fluence’s management notably reduced its 2025 revenue guidance, adjusting the projected midpoint from $4 billion to $3.4 billion.
However, Maheep Mandloi from Mizuho initiated an Outperform rating on FLNC on March 5, setting a price target of $8. Mandloi highlighted Fluence Energy, Inc.’s strong market position to be a key aspect of its growth as a leading energy storage integrator with more than 15% market share in North America. The growing demand for battery storage and declining battery costs can benefit Fluence, added Mandloi. The analyst expects an upside for the company’s domestic battery sourcing while the U.S. utility-scale battery storage deployments could grow at a CAGR of 10% through 2030.
10. Sunrun Inc. (NASDAQ:RUN)
No. of Hedge Fund Holders: 38
Sunrun Inc. (NASDAQ:RUN) is one of the leading residential solar and battery storage companies in the U.S. It designs, installs, and maintains residential solar energy systems, providing products and services through long-term subscription-based leases, direct sales, and power purchase agreements (PPAs).
Sunrun Inc. (NASDAQ:RUN) is expanding its presence in the energy storage industry and anticipates its installed storage capacity will be between 265 and 275 MW hours in Q1 2025, reflecting almost 30% growth year-over-year. The company is expanding its network through strategic collaborations. Sunrun’s focus is to integrate residential solar energy systems with the broader electric grid, converting homes into smart, controllable load resources. The company launched around 16 grid service programs in the U.S., with more than 20,000 customers participating in these programs. Sunrun is also offering free or heavily discounted home batteries to consumers taking part in the 10-year program.
On top of the company’s long-term plans, it delivered an adjusted EPS of $1.41 in Q4 2024, exceeding estimates by $1.60 per share. However, Sunrun’s revenue came in at $518.5 million, missing estimates by $22.56 million. During the last quarter, the company expanded its customer base by 12%. The company also reached all-time highs for storage attachment rates and installed capacity. The company reduced its recourse debt by $132 million and generated $34 million in cash in Q4. In FY2025, the company expects to generate around $200-$500 million in cash, with a target to pay down another $100 million in recourse debt.
9. Enphase Energy, Inc. (NASDAQ:ENPH)
No. of Hedge Fund Holders: 39
Enphase Energy, Inc. (NASDAQ:ENPH) is one of the largest global energy technology companies famous for solar microinverter systems. It also offers energy storage solutions and monitoring software designed for residential and commercial solar installations. The company’s systems have been deployed in over 160 countries, and it has shipped nearly 80 million microinverters around the world.
Enphase Energy, Inc. (NASDAQ:ENPH) is expanding its European presence. Recently, the company launched its most powerful battery system in Poland. Enphase’s IQ Battery 5P with FlexPhase is an energy system with a storage capacity of 5 kWh and can be configured up to 70 kWh. This battery system can support diverse home energy needs. The company earlier launched FlexPhase batteries in Germany, Austria, Switzerland, and Luxembourg. These launches were followed by Enphase’s announcement of production shipments of its latest EV charger, the IQ EV Charger 2, in 14 European markets last month.
On April 3, Sean Milligan from Jefferies downgraded the price target on ENPH shares from $54 to $44 and kept an Underperform rating on the stock. Whereas, Wells Fargo maintained an Overweight rating on ENPH with a price target of $75 per share. The analysts share mixed views on Enphase due to the U.S.’s strict policy on the renewable industry, while the company’s growing presence in Europe creates hope for growth.
8. Nextracker Inc. (NASDAQ:NXT)
No. of Hedge Fund Holders: 41
Nextracker Inc. (NASDAQ:NXT) offers integrated solar trackers and software solutions that optimize energy production for utility-scale and ground-mounted distributed generation solar farms. The company’s products allow solar panels in utility-scale power plants to follow the sun’s movement and generate energy while enhancing plant performance.
Nextracker Inc. (NASDAQ:NXT) seems to be a promising stock despite the economic uncertainty. The demand for Nextacker’s advanced trading technology is expected to rise. The company is enhancing solar panel efficiency and assisting solar farms to optimize costs. This makes Nextracker’s solar products attractive amid growing solar energy investments.
Recently, Christopher Dendrinos from RBC Capital initiated coverage on NXT shares with an Outperform rating and a price target of $55 per share. Dendrinos mentioned Nextracker’s consistent operational improvements and structural developments that enhance cost efficiency. Its innovative product designs minimize overall system costs, while the company’s industry-leading software, TrueCaputre, provides added value for consumers. The potential outlook for FY 2026/27 remains positive, driven by Nextracker’s robust balance sheet and FCF growth opportunities.
7. The Southern Company (NYSE:SO)
No. of Hedge Fund Holders: 53
The Southern Company (NYSE:SO) is a wholesale energy provider that serves over 9 million customers in almost 15 states in the U.S. The company has notable investments in renewable energy and plans to have more than 20,000 MW of renewable and storage resources by 2030. The company’s electric subsidiary, Georgia Power, serves almost 2.7 million consumers and expects to procure an additional 4,000 MW of renewable energy and 1,000 MW of battery resources by 2035.
On April 8, Jeremy Tonet from JPMorgan upgraded the rating on SO shares from Underweight to Neutral and increased the price target from $91 to $94. The analyst mentioned key aspects of The Southern Company’s growth, including an attractive regulatory environment and robust economic strength for its service territories. Mizuho analyst Anthony Crowdell also maintained a Neutral stance on SO with a recent price target increase from $85 to $90. This upgrade follows the company’s plan of $62.8 billion in capital investment from 2025 to 2029, which is expected to boost rate-based growth.
6. Duke Energy Corporation (NYSE:DUK)
No. of Hedge Fund Holders: 62
Duke Energy Corporation (NYSE:DUK) is one of the largest power companies in the U.S. The company serves through two major segments, including electricity and gas. Duke currently has over 11,900 MW of renewable generating capacity, which is expected to reach 30,000 MW by 2035. The company remains focused on net-zero targets and estimates renewables to be its biggest generation source by 2050. It is heavily investing in wind, solar, and battery storage to upgrade its energy sources.
Duke Energy Corporation (NYSE:DUK) has upgraded its five-year capital expenditure plan by 13.7% to $83 billion. This plan is set to accommodate the rising demand due to population growth and the expansion of data centers.
Recently, Morgan Stanley analyst Stephen Byrd increased the price target on DUK shares from $123 to $128, maintaining an Equal Weight rating on the stock. The analyst is bullish on diversified utilities and independent power producers. The strong energy demand from data centers and efforts to defend renewables will be key for companies like Duke Energy.
5. First Solar, Inc. (NASDAQ:FSLR)
No. of Hedge Fund Holders: 65
First Solar, Inc. (NASDAQ:FSLR) is a leading manufacturer of thin-film solar modules. The company’s solar systems are mainly designed for utility-scale solar projects. The company uses advanced photovoltaic technology that offers high energy efficiency and top-notch durability. The company sells solar modules, develops solar power plants, and makes revenues from the provision of operations and maintenance services as well.
Being a U.S. company, First Solar, Inc. (NASDAQ:FSLR) relies on domestic manufacturing, which strengthens its competitive edge during this tariff war with China. Moreover, the company is planning to increase its global nameplate manufacturing capacity to more than 25 GW by 2026. First Solar is also constructing a $1.1 billion manufacturing facility in Louisiana to support its production capacity. All-in-all, First Solar, Inc. (NASDAQ:FSLR) remains intact and strong for long-term growth.
4. NextEra Energy, Inc. (NYSE:NEE)
No. of Hedge Fund Holders: 84
NextEra Energy, Inc. (NYSE:NEE) is one of the largest renewable energy producers in the world. It produces energy from wind, sun, and battery storage. The company also owns America’s leading electric utility, Florida Power & Light Company, which generates energy from Florida’s sunshine and growing population. This facility generates stable rate-regulated earnings for NextEra Energy. Moreover, NextEra Energy Resources, the company’s leading competitive energy platform, owns a wide portfolio of renewable energy assets that generate stable cash flow.
NextEra Energy, Inc. (NYSE:NEE) plans to invest approximately $120 billion into energy infrastructure, such as new renewable energy capacity, over the next four years. Considering its growing power demand, NextEra Energy expects to improve its earnings and grow them by 6% to 8% annually through 2027. Recently, Morgan Stanley analyst David Arcaro increased the price target on NEE shares from $95 to $97, keeping an Overweight rating on the stock.
3. Constellation Energy Corporation (NASDAQ:CEG)
No. of Hedge Fund Holders: 85
Constellation Energy Corporation (NASDAQ:CEG) produces clean energy and supplies it to businesses, homes, and public sector consumers in the U.S. It generates energy from nuclear, hydro, wind, and solar facilities with a total capacity to power nearly 16 million homes. The company is responsible for providing approximately 10% of the nation’s clean energy in the U.S. The company owns one of the largest solar power facilities in the country, generating a total capacity of 242 MW.
Constellation Energy Corporation (NASDAQ:CEG) continues to expand its operations. In January 2025, the company agreed to acquire natural gas and geothermal company Calpine Corp. In addition to that, the company is committed to its shareholders, as it repurchased its shares worth $1 billion in 2024.
On April 9, Ryan Levine from Citi upgraded the rating on CEG shares from Neutral to Buy, adjusting the price target from $334 to $232. Levine is optimistic about CEG as it presents a more attractive risk-reward profile following a recent sell-off period. Moreover, Constellation Energy Corporation will benefit from the co-location deals, which are projected to include nearly 1 GW of uprates and 1.2 GW from existing operations. The analyst also highlighted that the major changes to AI power market policies will create a notable upside for the company.
2. GE Vernova Inc. (NYSE:GEV)
No. of Hedge Fund Holders: 111
GE Vernova Inc. (NYSE:GEV) is one of the leading power companies in the world. It designs, manufactures, and services technologies to generate sustainable electric power systems, powering electrification and decarbonization. The company is a global leader in wind turbine maintenance and wind turbine services. GEV operates through three major segments, including Power, Wind, and Electrification.
GE Vernova Inc. (NYSE:GEV) is majorly involved in producing sustainable energy. The company’s involvement with RWE in Texas energy projects and its collaboration with PyroGenesis reflect its focus on sustainability and carbon-free energy production. These developments show GEV’s continued commitment to enhancing energy solutions based on modern infrastructure. In addition, the company is expanding its market position. GEV is actively engaged in enhancing sustainability projects, including its agreement with Tosyali for a solar power project and its partnership with Technip Energies on the net-zero Teesside Power project.
JP Morgan analyst Mark Strouse maintained an Overweight rating on GEV on April 10, lowering the price target from $436 to $425. The analyst remains optimistic about the company’s future and expects the Q1 results to align with the company’s guidance and analysts’ estimates. The analyst believes that GE Vernova is well-positioned to tackle tariffs and perform better than its competitors in all three business segments.
1. Vistra Corp. (NYSE:VST)
No. of Hedge Fund Holders: 120
Vistra Corp. (NYSE:VST) is one of the leading retail and power generation companies in the U.S. Its operations range from conventional power generation to cutting-edge renewable energy and energy storage technologies. Vista is focusing on sustainable sources of energy through Vistra Zero. The company currently produces 7,800 MW of zero-carbon and plans to retire 4,588 MW of fossil-fueled power plants by 2027.
Vistra Corp. (NYSE:VST) is slightly holding the closing of its 1,185 MW Baldwin Power Plant in Illinois, which will now operate until 2027. The company has invested nearly $135 million in Illinois energy, and the solar facility is expected to generate 140,000 MWh of clean energy in the next two decades.
Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q4 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail and power generation company with operations across the U.S., primarily serving Texas and the Midwest. We believe Vistra is well-positioned to capitalize on the structural tightening of power markets, as electricity demand accelerates, and baseload generation capacity continues to retire. This trend has been amplified by the rapid growth of AI, which is driving unprecedented demand for data centers and the power required to run them. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The company has locked in much of this value via hedging, providing clear visibility into future cash flows. Vistra has also successfully grown its retail business and completed a strategic acquisition of Energy Harbor, which added a portfolio of nuclear, retail, and renewable assets.”
While we acknowledge the potential of VST to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than VST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.
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