In this article, we will explore the 9 Best Green Energy Penny Stocks to Invest In.

The Iran conflict has caused shipping troubles in the Strait of Hormuz, disrupting the oil supply chain and leading to a sharp spike in energy prices around the world. In this light, global demand for renewable energy has accelerated as businesses and households seek alternatives.

From the war in Ukraine to the war in Iran, current geopolitical conflicts have exposed the vulnerability of the global oil supply chain. With this has come a shift in focus regarding the renewable energy transition. It is no longer just a matter of environmental benefits, but also a national security necessity.

Addressing government officials in Paris last month, the UN climate chief, Simon Stiell, spoke about the freedom that renewable energy offers.

“Those who’ve fought to keep the world hooked on fossil fuels are inadvertently supercharging the global renewables boom,” Stiell said, according to a Reuters report on April 30. “Renewables offer safer, cheaper, cleaner energy ​that can’t be held captive by narrow shipping straits, or global conflicts,” he added.

Countries are seeking energy independence, or at least diversifying energy systems, to protect against external shocks. Add to this the tightening emissions regulations and growing demand for AI data center power, and you can see why interest in renewables is soaring.

As the buildout of solar, wind, and other alternative energy sources continues, demand is surging for energy storage solutions. On May 7, Bloomberg reported that the annual addition of energy storage reached 112 gigawatts in 2025, increasing 48% from 2024 and setting another deployment record.

On May 6, the International Renewable Energy Agency released a report in which it said that wind and solar energy paired with battery storage can provide steady power more affordably than fossil fuels.

With that said, this article discusses the 9 best green energy penny stocks to invest in.

Our Methodology

To select our 9 best green energy penny stocks to invest in, we used the Finviz stock screener, sifted through various ETFs, and scanned financial media reports and industry publications to identify companies participating in the renewable energy space. We looked for companies with shares trading under $5. We ended up with dozens of stocks in our initial list and applied additional filters to pick out the best. We looked for stocks with at least 15% upside potential as of May 7. Additionally, we checked the stocks’ hedge fund popularity using the Insider Monkey database as of Q4 2025. Finally, we ranked the stocks in ascending order based on upside potential.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).

Best Green Energy Penny Stocks to Invest In

9. Energy Vault Holdings Inc (NYSE:NRGV)

Stock Price: $4.21

Number of Hedge Fund Holders: 24

Upside Potential: 19.16%

Energy Vault Holdings Inc (NYSE:NRGV) is one of the best green energy penny stocks to invest in. Energy Vault shares have climbed almost 40% over the past month and soared more than 450% in the past 12 months.

Energy Vault reported its Q1 2026 results on May 5. Revenue rose 156% YoY to $21.9 million, adjusted gross profit rose 25% YoY to $6.1 million, and cash increased 148% to $117 million. Additionally, the company’s backlog more than doubled from the prior year to $1.35 billion.

The quarter revealed a major milestone in the transformation of Energy Vault’s business model, and the management spoke much about it.

Just a little over a year ago, 80% of the company’s backlog was tied to energy storage EPC projects, which have low profit margins. The Q1 2026 report shows that Energy Vault has shifted 80% of its backlog to the high-margin independent power producer (IPP) projects. The IPP projects not only have higher margins than EPC projects, but they also generate recurring revenue.

Looking ahead, Energy Vault anticipates its full-year 2026 revenue in the band of $225–$300 million. That indicates a growth of 30% YoY at the midpoint of the guidance. The company is targeting a cash position of $150 million to $200 million at the end of 2026.

Energy Vault Holdings Inc (NYSE:NRGV) provides energy storage solutions to utilities and industrial customers. Its solutions support long-duration energy storage using battery systems and gravity-based technology. The company also operates as an independent power producer, helping to meet the power demand of AI data centers.

8. Opal Fuels Inc (NASDAQ:OPAL)

Stock Price: $2.25

Number of Hedge Fund Holders: 8

Upside Potential: 44.74%

Opal Fuels Inc (NASDAQ:OPAL) is one of the best green energy penny stocks to invest in. On April 21, Opal Fuels Inc (NASDAQ:OPAL) announced the signing of an agreement to monetize tax credits under Section 45Z of the US tax code. Section 45Z was created to encourage production of low-carbon fuels, such as renewable natural gas, for the transportation market.

Opal Fuels said the agreement marks a milestone in advancing its strategy to optimize the value of its platform and expects the first closing in Q2 2026. The company highlighted its efforts to help fleets replace diesel with renewable fuels to enjoy cost savings and stable pricing.

Opal Fuels expects proceeds from monetizing Section 45Z to strengthen its liquidity and support future growth investments. The company looks to invest in new production projects and expand its fuel distribution infrastructure, saying this will help accelerate wider fleet adoption of renewable transportation fuel.

Section 45Z of the tax code, also known as the Clean Fuel Production Credit, has bipartisan support. According to Opal Fuels, the bipartisan support provides policy certainty and bolsters industry confidence in the program’s stability and longevity.

Opal Fuels Inc (NASDAQ:OPAL) produces and distributes renewable natural gas (RNG). It operates RNG production facilities fed by organic waste from dairy farms and landfills. Opal Fuels distributes its gas through a nationwide network of fueling stations that serve transport fleets.