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Best renewable energy stocks to buy in 2021
We’ve analysed the markets to find the renewable energy stocks we’re most excited by at the moment. This page includes our top five picks to invest in along with some help on how to find your own.
What are the top renewable energy stocks to buy in 2021?
This is our list of the best renewables stocks, ranked in order of their future potential. Use the links in the table to find their latest price, or scroll down for more information on why we chose each one.
|#||Stock symbol||Company name|
|1||CSIQ||Canadian Solar Inc.|
|3||DQ||Daqo New Energy Corp.|
|4||PLUG||Plug Power Inc.|
1. Canadian Solar Inc. (NASDAQ: CSIQ)
Canadian Solar makes solar panels that convert sunlight into electricity. Headquartered in Canada, it has installed power plants across North America, Europe, and Asia that run on solar energy.
Solar stocks took off in 2020 and Canadian Solar was no different, with its share price climbing 200% across the year. Along with growing investor appetite for renewable energy, there were real results as well: a record number of solar panels installed, and grid outages convincing more people to add their own solar-powered generators at home.
CSIQ earns top spot here because the outlook remains rosy, not least because the Biden administration is much more focused on green energy than its predecessor and has added incentives into its major infrastructure bill. Despite its growth so far, Canadian Solar is available relatively cheaply and still has room to grow.
2. SunPower Corporation (NASDAQ: SPWR)
SunPower is a US-based company that sells solar panels to residential and commercial customers. It also sells energy management software, again targeted at home and office owners.
Initially a solar panel manufacturer as well, SunPower spun off its manufacturing wing in August 2020. That decision to focus on software and sales, two high-growth areas, sent its share price up 600% by the end of the year.
Although it has fallen back a bit since then, SunPower is leaning into its new, slimmed-down, frame, which is what has it second on this list. Its new CEO wants to make buying solar panels as easy as ordering from Amazon, and there is a huge, untapped market for them – only 3% of homes in America have solar panels right now.
3. Daqo New Energy Corp. (NYSE: DQ)
Daqo New Energy is a Chinese company that manufactures polysilicon – metal parts that help build solar panels.
Demand for polysilicon has exploded over the last year, as the clean energy revolution gathers pace. Driven by these attempts to create alternative sources of power, Daqo’s shares increased by an eye-watering 1,000% in 13 months between January 2020 and February 2021.
Even if that sort of rise is – obviously – not sustainable, the demand for solar panels is. Like semiconductor chip manufacturers who play a vital, if lesser-known, role in computing, producing the vital hardware during a boom in renewable energy could be big business for Daqo moving forward.
4. Plug Power Inc. (NASDAQ: PLUG)
Plug Power develops hydrogen fuel cells, which are clean alternatives to battery power and can be used in cars and power plants. Formed in 1997, it actually hit massive highs during the dot com bubble and fell back to plugging along slowly until the renewables boom hit in 2020.
Like every other company on this list, that boom sent its share price flying again. It was up 1,500% in a year, most of which came after Joe Biden won the presidential election in November. The expectation of a much more green-friendly political scene was enough for investors to pile in.
There have been a few setbacks since then, and the price is still based on potential rather than hard results. But Plug Power is on this list because it has already struck deals with companies like Renault to supply the fuel cells for its cars. Major deals like that are proof that the demand for its technology is there.
5. ReneSola Ltd. (NYSE: SOL)
ReneSola is a Chinese company that’s listed in the United States, and operates like a project manager of solar energy infrastructure developments. It focuses on financing and managing green energy projects in the US and Europe.
Once again, it’s shares took off after the election results, going up 500% in a month between December 2020 and January 2021. Since then, there has been a bit of a tail-off, but that is more likely to be investors taking a profit rather than any statement on the underlying business.
That business is doing well. It essentially manages infrastructure projects and sells them on once they’re complete, and it expects to have doubled the amount in late stage development by the end of 2021, compared to a year earlier. Its stock can be a rollercoaster, but ReneSola is churning out solar power at a relentless rate.
Where to buy the best renewable energy shares
You can use the brokers below if you want to dive in and get your stocks now. Our team of financial experts have reviewed all of the leading platforms to pick out the best ones, and all of the ones in our list are bursting with features to help you invest.
What is a renewable energy stock?
Any company that is involved in researching, manufacturing, or selling alternative energy sources. That means any business that’s involved in solar energy, wind power, or hydroelectricity counts as a renewable energy stock.
Are renewable energy shares a good investment?
It certainly looks like it, with people across the world becoming more eager to find alternative sources of energy to ward off the danger of climate change. Shares in companies that provide clean energy have been volatile over the past year, but there’s no doubt the demand for their products exists.
As with any tech stock, picking the right companies to invest in is the challenge. The industry suits both short term traders who are looking to find bargains with the potential to boom, and those with longer horizons who think this technology is the future.
Both methods carry an element of risk, and you should be prepared to see big swings in the value of these stocks. Often, those swings are based on expectation or hype that comes out of a news event – like the US presidential election. You can follow the latest news below to make sure you don’t miss out on anything.