Clean energy has returned to investors’ attention as a Democratic Congress raises expectations that federal green subsidies and tax credits will receive stronger protection and that project approvals could move faster. Reuters reported renewed interest in solar manufacturers, residential installers, and equipment suppliers following the election. The policy outlook matters because developers commit capital well before a power plant starts generating revenue. Greater confidence in the incentives available when a project is completed can make it easier to finance construction, place equipment orders, and secure customers for its electricity.
That opportunity extends across the businesses discussed in our list of 10 Best Clean Energy Stocks to Buy Right Now. Manufacturing credits can support domestic factories, while incentives for project owners influence demand for panels, trackers, batteries, and construction services. Faster approvals would address another obstacle by reducing the time between announcing a development and starting operations. For shareholders, the financial benefit depends on where a company sits in that process and how much of the available support reaches its earnings.
Industry demand provides a useful starting point. The Solar Energy Industries Association and Wood Mackenzie reported that U.S. solar installations reached 11.4 gigawatts in the second quarter of 2026, an increase of 45% from a year earlier. Utility-scale installations rose 61% to 9.6 gigawatts, while residential installations declined 12% to 995 megawatts. Those figures show why a broad improvement in sentiment can have different implications for individual companies. Suppliers serving large developers face a different order environment from installers selling systems to households.
The business models also produce different cash-flow demands. An equipment manufacturer can book revenue when it ships a product. A contractor must manage labor, procurement, and construction schedules before collecting the full value of a project. A company that owns solar or storage assets needs financing upfront and earns its return over years of operation. These differences help explain why growing orders can coexist with weaker margins or continued borrowing needs. They also provide a useful way to compare the opportunities covered in our 8 Best Wind Power and Solar Stocks to Buy Right Now.
Grid access remains a major constraint. Lawrence Berkeley National Laboratory counted 2,061 gigawatts of proposed generation and storage seeking a U.S. grid connection at the end of 2025. Many projects entering those queues are eventually withdrawn. The backlog creates potential work for construction and electrical-equipment suppliers, although customers still need financing, permits, and buyers for their power. Analyst targets provide one way to compare expectations across these businesses. Reading them alongside contracted orders, cash generation, and hedge fund ownership gives investors a fuller picture of what must happen for those expectations to be met.
For illustration purposes only. Photo by Adrinil Dennis on Pexels
Our Methodology
To compile our list, we screened listed renewable and clean energy stocks using thematic ETF holdings, focusing on the renewable-energy equipment and alternative-electricity holdings of the First Trust Nasdaq Clean Edge Green Energy Index Fund. We supplemented this screen with online searches to identify additional relevant companies. From the candidates, we considered stocks with Buy or Strong Buy consensus ratings and positive upside to analysts’ median 12-month price targets. We selected the ten stocks with the highest upside and ranked them from lowest to highest. We also included Q2 2026 hedge fund holder counts from Insider Monkey’s database.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).
10. Nextpower Inc. (NASDAQ:NXT)
Upside Potential: 25.53%
Number of Hedge Fund Holders: 59
Market Capitalization: $15.80 billion
Nextpower Inc. (NASDAQ:NXT) supplies solar trackers and an expanding range of equipment used at utility-scale power plants. Its growth opportunity increasingly comes from selling more products into each development. A customer buying trackers can also purchase foundations, electrical connections, or power-conversion equipment. That gives the company additional ways to increase revenue from existing customer relationships as developers build larger and more complex projects.
The fiscal second quarter of 2027 showed progress in that expansion. Revenue increased 23% year over year to $1.11 billion, and record bookings lifted backlog above $6 billion. Electrical-equipment orders exceeded $100 million, while a framework agreement covered 1.1 gigawatts of inverters across five projects. Management raised its full-year revenue outlook to $4.20 billion–$4.45 billion from $4.10 billion–$4.40 billion. These orders give investors evidence that customers are beginning to adopt the broader product offering.
The earnings contribution will depend on the profitability of that mix. Gross margin declined to 31.1% from 32.4% a year earlier, even as revenue advanced. Selling additional equipment can strengthen a customer relationship and expand the addressable market, but it also adds manufacturing, procurement, and integration demands. The question is whether the new businesses can generate enough incremental profit to compensate for those costs. Our discussion of Nextpower’s expansion beyond solar trackers examines how its electrical technology supports that strategy.
Analysts’ median target of $125 implies 25.53% upside under our screen. Hedge fund ownership also increased to 59 holders in Q2 2026 from 44 in the preceding quarter. The growing order book and broader product range help explain that attention. Investors still need to see booked projects turn into deliveries while margins hold up as the company absorbs the costs of expansion.
9. Sunrun Inc. (NASDAQ:RUN)
Upside Potential: 26.65%
Number of Hedge Fund Holders: 40
Market Capitalization: $2.41 billion
Sunrun Inc. (NASDAQ:RUN) is building its residential solar business around batteries that can serve both homeowners and the electricity grid. Storage accounted for 75% of new customer additions in the third quarter of 2026, up from 70% a year earlier. Connected batteries give Sunrun an opportunity to earn revenue by supplying power when utilities need it, while customers receive backup electricity. Its systems demonstrated that capability by delivering more than 430 megawatts during a single grid event.
That makes Sunrun’s virtual power plant strategy an important part of the investment case. A larger installed battery network can create additional services without requiring Sunrun to acquire a new household customer for every transaction. The economics still depend on the compensation utilities offer and the expense of building and maintaining the systems. Investors therefore need to assess the value generated from each installation alongside the pace of customer additions.
The operating figures show that tension. Sunrun added 22,957 subscribers in the quarter, down 24% year over year. Contracted net value per subscriber fell 28% to $6,645 as the discount rate used to value project cash flows increased to 8.4% from 7.3%. Higher financing costs reduce the present value of payments under long-term customer contracts, even when demand for reliable household power remains intact.
Operating cash flow reached $301 million, but Sunrun’s separate cash-generation measure was $6 million after $50 million of equipment purchases tied to tax-credit eligibility. Management forecast roughly $200 million of full-year cash generation excluding those purchases. JPMorgan maintained an Overweight rating while reducing its target to $11. The broader median target of $12.50 implies 26.65% upside, with 40 hedge funds holding the stock in Q2. Improving cash generation from the battery network would provide stronger support for that analyst confidence.
8. First Solar, Inc. (NASDAQ:FSLR)
Upside Potential: 29.75%
Number of Hedge Fund Holders: 64
Market Capitalization: $21.04 billion
First Solar, Inc. (NASDAQ:FSLR) has direct exposure to the economics of domestic solar manufacturing. Its fully integrated production model makes federal manufacturing credits a substantial part of earnings, giving investors a clear reason to follow the policy outlook. The company’s 2026 gross-profit guidance of $2.40 billion–$2.60 billion includes $2.07 billion–$2.19 billion of Section 45X manufacturing credits. The durability of that support therefore matters alongside factory utilization, selling prices, and customer demand.
The third-quarter results illustrate how those factors interact. Revenue declined 23% year over year to $1.23 billion as the volume of modules sold to outside customers fell. Gross margin nevertheless increased to 57.9% from 38.3%, helped by higher realized prices and a larger volume of credit-eligible modules. Diluted earnings per share rose 25% to $5.30. The results show why shipment volume alone offers an incomplete picture of the company’s earnings trajectory.
First Solar ended the quarter with 44 gigawatts of contracted sales, providing visibility into future demand. Management reduced its 2026 revenue forecast to $4.6 billion–$4.9 billion from $4.9 billion–$5.2 billion, reflecting lower expected module sales volumes, including reduced sales into India’s domestic market. Pricing and demand in each market will shape how much of its expanded manufacturing capacity translates into profitable sales. Our analysis of First Solar’s challenge of converting backlog into cash examines the importance of contract terms and execution as the company expands domestic capacity.
William Blair’s upgrade to Outperform adds support to the constructive analyst outlook. The median target of $254 implies 29.75% upside, and First Solar had the largest Q2 2026 hedge fund following among these ten companies, with 64 holders. Sustaining that interest will depend on converting contracted demand into profitable shipments while managing the substantial role that policy incentives play in reported margins.
7. Ormat Technologies, Inc. (NYSE:ORA)
Upside Potential: 32.29%
Number of Hedge Fund Holders: 32
Market Capitalization: $5.72 billion
Ormat Technologies, Inc. (NYSE:ORA) combines geothermal power generation with an expanding battery-storage business. Geothermal plants can supply electricity around the clock, making them useful to customers seeking dependable renewable power. Batteries add a different source of revenue by shifting electricity between periods of low and high demand. Our discussion of Ormat’s stable cash flows and growing storage business examines how that combination supports its development plans.
Storage drove much of the improvement in the third quarter of 2026. Segment revenue increased 145% year over year to $49.9 million as new facilities entered service and market conditions supported existing assets. Net income attributable to shareholders rose 32% to $31.9 million. The results demonstrate how incremental storage capacity can contribute to earnings, although favorable wholesale electricity prices also helped the comparison.
Contract structure matters when judging how much of that growth can recur. Ormat’s planned 100-megawatt Denali battery has a 20-year tolling agreement that gives the customer access to capacity and provides greater revenue visibility for Ormat. Projects earning more of their income from wholesale markets face a different risk profile because charging and discharging margins fluctuate. The balance between contracted payments and market revenue will influence how predictable the storage business becomes as it grows.
Geothermal development provides another opportunity. Ormat identified potential for 5 to 6 gigawatts of enhanced geothermal capacity on its land, while commercial terms and drilling at Dixie Valley remained to be established. That resource potential requires successful development before it contributes to cash flow. Morgan Stanley initiated coverage at Overweight with a $123 target, highlighting cash generation from the existing fleet. The same median target implies 32.29% upside in our screen. With 32 Q2 hedge fund holders, investors have an established operating business from which to assess the expansion.
6. SOLV Energy, Inc. (NASDAQ:MWH)
Upside Potential: 46.94%
Number of Hedge Fund Holders: 44
Market Capitalization: $4.82 billion
SOLV Energy, Inc. (NASDAQ:MWH) builds and services utility-scale solar, battery-storage, and related power infrastructure. That places it close to the construction decisions influenced by project incentives and permitting. Developers need a contractor that can coordinate site preparation, equipment installation, and grid-related work. These integrated capabilities support SOLV Energy’s expansion across utility-scale solar and storage projects and give customers fewer construction interfaces to manage.
The roughly $45 million acquisition of ASB Energy Services supports that approach. ASB constructs substation foundations and battery-storage infrastructure, bringing specialized work in-house. Greater control over those activities could help SOLV manage schedules and reduce dependence on outside contractors. The financial benefit will depend on how effectively it integrates the acquired operations and uses the additional capacity across its project portfolio.
Second-quarter 2026 revenue increased 77% year over year to $951 million, supported by construction activity and acquisitions. Backlog reached $8.9 billion, up 44%, and management raised its full-year revenue forecast to $3.87 billion–$3.97 billion. SOLV also had more than 23 gigawatts under operations-and-maintenance contracts. Those service relationships extend its involvement beyond initial construction and create opportunities to remain with customers as completed projects age or require additional work.
Profitability deserves attention alongside the scale of the order book. Adjusted EBITDA margin fell to 12.4% from 16.1%, with the prior-year comparison benefiting from unusually favorable repair and development-related sales. Investors should watch the margin earned as new backlog moves into construction, particularly where labor and procurement requirements are substantial. The median analyst target of $35 implies 46.94% upside, supported by a Strong Buy consensus. Forty-four hedge funds held the stock in Q2. Turning that backlog into consistent earnings would strengthen the case for the company’s broader infrastructure expansion.
5. Ameresco, Inc. (NYSE:AMRC)
Upside Potential: 103.66%
Number of Hedge Fund Holders: 17
Market Capitalization: $1.02 billion
Ameresco, Inc. (NYSE:AMRC) develops energy infrastructure that helps customers reduce electricity costs and keep essential facilities operating during outages. Its combination of efficiency projects, renewable generation, and battery storage gives it several routes into a customer’s capital budget. Public funding can make a substantial difference. At an Oregon sanitation authority, a state grant supplied $870,870 of a $1 million solar-and-storage project designed to offset the main office’s annual electricity consumption. The installation also provides backup power, making reliability part of the economic case.
The larger opportunity is Ameresco’s expanding pipeline of data-center power projects. Second-quarter 2026 backlog reached $6.73 billion, although the composition deserves attention. Fully contracted work accounted for $2.30 billion, while $4.42 billion represented awards still moving through contracting. Five data-center projects were among those awards. Those customers broaden Ameresco’s market beyond public agencies and municipalities, but their spending decisions must become binding commitments before shareholders can treat the entire pipeline as dependable revenue.
Revenue increased 9% to $515.5 million in the quarter, while adjusted EBITDA rose 12% to $62.8 million. That supports the case for improving operating scale. However, higher full-year adjusted earnings-per-share guidance also incorporated an expected change in accounting for transferable tax credits. Contract conversion and project cash receipts therefore provide useful checks on the reported earnings improvement. A larger backlog creates more opportunity, while the funding required to deliver it determines how much value ultimately reaches shareholders.
The $39 median analyst target implies 103.66% upside in our screen. Ameresco’s appeal rests on converting a growing project pipeline into profitable construction and recurring energy revenue. Sustained progress on that conversion would give the analyst optimism a firmer operating foundation. Insider Monkey’s Q2 2026 database showed 17 hedge fund holders.
4. FuelCell Energy, Inc. (NASDAQ:FCEL)
Upside Potential: 135.16%
Number of Hedge Fund Holders: 30
Market Capitalization: $713.99 million
FuelCell Energy, Inc. develops fuel-cell systems that generate electricity on site, including installations using biogas from wastewater treatment. For a data-center customer, the attraction is access to dependable power while grid connections remain constrained. FuelCell has secured an upfront reservation payment from an operator planning a 75-megawatt Texas project. That provides evidence of commercial interest, although definitive project agreements still need to be completed before the reservation becomes a fully committed deployment.
The distinction between customer interest and enforceable orders also runs through the company’s committed and awarded backlog. Fit Energy has committed to an initial 30 megawatts and retains options for another 350 megawatts. Exercising those options would expand the manufacturing workload substantially. Until that happens, shareholders have to assess the initial order and the optional phases separately. Factory investment and component purchases can begin well before the full opportunity produces cash, creating a financing burden if customer decisions take longer than expected.
Fiscal third-quarter 2026 revenue declined 29% to $33.0 million, while gross losses widened to $24.5 million from $5.1 million a year earlier. A $17 million charge reflected prices on the initial Fit contract that fell below inventory and procurement costs at existing production volumes. The result illustrates why larger orders alone cannot settle the investment case. Higher production must reduce unit costs enough to turn those contracts into profitable sales, while future agreements need pricing that compensates for manufacturing and service obligations.
Analysts’ $21 median target implies 135.16% upside in our screen, with estimates ranging from $8 to $32. That spread captures the uncertainty around commercial conversion and profitability. FuelCell appeared in 30 hedge fund portfolios in Q2 2026, compared with 22 in the preceding quarter. The operating test is whether commitments improve factory economics.
3. Energy Vault Holdings, Inc. (NYSE:NRGV)
Upside Potential: 150.00%
Number of Hedge Fund Holders: 21
Market Capitalization: $509.15 million
Energy Vault Holdings, Inc. (NYSE:NRGV) develops storage systems that help utilities manage the mismatch between electricity production and consumption. The business is also expanding its ownership of storage projects, giving shareholders exposure to construction activity and the revenue earned after a facility starts operating. Delivering systems for customers brings revenue around project milestones. Retaining ownership can create a longer income stream, but it also requires capital to remain invested while the asset is built and commissioned.
The Stoney Creek battery in New South Wales illustrates that approach. The approved project has 125 megawatts of power capacity and is designed to discharge for eight hours. A 14-year energy service agreement supports its revenue, alongside anticipated sales into the wholesale market. Management expects the combination to generate $25 million to $30 million annually once commercial operations begin, targeted for the first half of 2028. Contracted support gives investors a clearer starting point for estimating returns, while wholesale electricity prices still influence the total.
The timing of construction and customer deliveries remains central to the nearer-term results. Energy Vault raised its 2026 revenue outlook to the upper half of its previous $270 million–$310 million range, citing expected fourth-quarter project deliveries. This makes completion milestones consequential. A delayed handover can move revenue between reporting periods, while construction spending and financing commitments continue. Investors therefore need to assess the progress of individual projects alongside the revenue forecast.
Citi retained a Buy rating while lowering its target to $4.75 from $6. The broader analyst median of $7 implies 150.00% upside in our screen, showing how widely bullish assessments can differ. Energy Vault’s opportunity depends on commissioning projects and converting its growing asset portfolio into recurring income. Twenty-one hedge funds held the shares in Q2 2026.
2. American Superconductor Corporation (NASDAQ:AMSC)
Upside Potential: 154.38%
Number of Hedge Fund Holders: 22
Market Capitalization: $1.16 billion
American Superconductor Corporation (NASDAQ:AMSC) supplies power-control systems, wind-turbine electronics, and equipment that helps utilities stabilize their networks. Its exposure to grid and wind equipment fits the clean-energy investment theme because renewable projects require reliable connections and controls to deliver usable electricity. Customers also include conventional energy and industrial businesses. That broader base gives the company opportunities tied to network modernization even when a renewable project is delayed or a subsidy changes.
The company reported more than $95 million in orders in its fiscal second quarter of 2026. Revenue increased to $94.0 million from $65.9 million a year earlier, supported by organic growth and the acquisition of Brazilian transformer manufacturer Comtrafo. These figures show demand translating into shipments, but some customers had requested earlier deliveries. Management’s outlook called for revenue above $80 million in the following quarter. Investors consequently need to consider the timing of orders and shipments before extrapolating the stronger quarter across a full year.
Profitability gives a more measured picture of that expansion. GAAP net income declined to $3.0 million from $4.8 million, while non-GAAP net income reached $9.1 million from $8.9 million. Quarterly operating cash flow rose to $33 million. The cash generation supports the business as it integrates acquired operations and fulfills orders, although the different trends in sales and earnings leave the profitability of incremental revenue worth watching. Growing the installed base is valuable when the associated manufacturing and operating costs remain controlled.
The $61 median analyst target implies 154.38% upside in our screen. However, the consensus covers just four analysts, so the result represents a small set of forecasts. Twenty-two hedge funds held American Superconductor in Q2 2026. Evidence that strong orders can support earnings growth would strengthen the case behind those targets.
1. T1 Energy Inc. (NYSE:TE)
Upside Potential: 294.74%
Number of Hedge Fund Holders: 47
Market Capitalization: $682.86 million
T1 Energy Inc. (NYSE:TE) manufactures solar modules in Dallas and is building a Texas solar-cell factory to supply more of the components inside them. The strategy is to establish a domestic solar supply chain that can meet developers’ requirements for local content and dependable delivery. Manufacturing more components internally could give T1 greater control over production, but the financial benefit depends on bringing new capacity into service at competitive costs and securing profitable customer agreements.
The company has signed contracts for more than 1.58 gigawatts of modules for delivery in 2027 and 2028, taking contracted 2027 manufacturing capacity above 4 gigawatts. Customers include subsidiaries of independent power producer Avantus. The agreements anticipate a mixture of imported cells and cells produced at T1’s new factory. This provides demand visibility while also tying part of the delivery plan to successful completion of the first 2.1-gigawatt manufacturing phase, which management expects to start producing in early 2027.
Second-quarter 2026 results show the distance between building scale and earning consistent profits. Dallas produced 935 megawatts, and sales reached $250.1 million. T1 nevertheless recorded a $36.9 million loss from continuing operations, despite a $24.4 million tariff-refund benefit. The company also raised $120 million through convertible notes as it funded expansion. Additional capacity can support growth, but shareholders must weigh construction spending, financing costs, and potential dilution against the earnings generated by future deliveries.
Needham maintained a Buy rating while lowering its target to $6 from $7. The $9 median analyst target implies 294.74% upside in our screen, the largest among the selected stocks. Forty-seven hedge funds held T1 in Q2 2026. Delivering the contracted modules on schedule and improving underlying manufacturing profitability would provide the clearest evidence that the company can justify that optimism.
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