We recently published a list of 12 Best Renewable Energy Stocks to Buy in 2025. In this article, we are going to take a look at where Sunrun Inc. (NASDAQ:RUN) stands against other 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.
READ ALSO: 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.
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).
A field of solar panels glistening in the afternoon sun, symbolizing the company’s renewable energy ambitions.
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.
Overall, RUN ranks 10th on our list of best renewable energy stocks to buy in 2025. While we acknowledge the potential of RUN 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 RUN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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