In this article, we discuss the 12 most promising clean energy stocks according to Wall Street analysts.
The overall outlook for the clean energy sector continues to baffle investors. For example, the International Energy Agency (IEA) expects clean energy technologies to attract about $2.2 trillion in investment in 2025, significantly outpacing investments in fossil fuels. However, latest reports from news agency Reuters indicate that the agency has cut its global forecast for renewable power growth by 2030 by 248 gigawatts from last year’s outlook, citing weaker prospects in the United States and China, even as solar power continues to drive record additions. The IEA has forecast that global renewable power capacity is now expected to rise by 4,600 GW by 2030, down from its six-year forecast of 5,500 GW in 2024, with solar accounting for about 80% of the increase.
In India, Reuters claims that at least 3–4 gigawatts of Indian solar projects may be cancelled after the government directed clean energy agencies to reissue tenders that were rushed to bypass import restrictions that kick in next year. Meanwhile, updates from Africa and the Middle East point towards continued momentum in the clean energy sector. The energy minister of Algeria recently announced that his country would invest $60 billion in energy projects between 2025 and 2029 as part of a large-scale strategy to boost oil, gas, and hydrogen development. Reuters reports that Yemen’s first large-scale solar plant is helping to alleviate electricity shortages in the southern port city of Aden, bringing some relief to residents and businesses, which suffer losses particularly when the intense summer heat hits.
One major indicator of the bright future of clean energy companies is that by early 2025, the IEA expects renewables to make up more than a third of total generation, overtaking coal, as nuclear power remains on track to reach an all-time high. Per the energy agency, low-emissions generation, including nuclear, is expected to account for almost half of global electricity generation by 2026, compared to 40% in 2023. The IEA claims that although global electricity demand growth eased to 2.2% in 2023, it is expected to jump to an average of 3.4% from 2024 to 2026. About 85% of that increase is likely to come from outside of advanced economies like China, India, and countries in Southeast Asia. As such, companies that operate in the clean energy sector can expect outsized growth during this period.
Our Methodology
For this article, we scanned Clean Energy ETFs plus online rankings to compile an initial list of 50 clean energy stocks. From these firms, we narrowed the list further by selecting US-listed companies with a market cap of greater than $2 billion and a street-high analyst upside of at least 8%-10%. We have ranked these stocks in ascending order based on the potential upside.
These stocks are also popular among hedge funds. 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).
Most Promising Clean Energy Stocks According to Wall Street Analysts
12. Brookfield Renewable Corporation (NYSE:BEPC)
Number of Hedge Fund Holders: 22
Street-High Upside Potential: 8%
Brookfield Renewable Corporation (NYSE:BEPC) is one of the clean energy stocks that look well-positioned to benefit from the rising global electricity demand as well as the AI megatrends. This is because the company has solid assets in the hydro and battery storage space that provide a key competitive moat, supporting baseload power and enabling high-value re-contracting as legacy agreements expire. Financial experts note that the asset recycling strategy and inflation-linked revenues support management’s confidence in delivering 10%+ annual FFO per share growth. The firm’s operations consist of approximately 13,948 megawatts of installed hydroelectric, wind, solar, and storage and ancillary capacity located in Brazil, Colombia, North America, and Europe.
In mid-September, an analyst from JPMorgan raised the price target on Brookfield Renewable Corporation (NYSE:BEPC) stock to $41 from $39 and kept an Overweight rating on the shares. In an investor note, the analyst attributed the target raise to an updated clean energy model and establishing December 2026 targets versus December 2025 previously.
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