Best renewable energy stocks to buy in 2022

Companies leading the charge to find alternative forms of energy are some of the hottest businesses around. Here, our experts pick their top five renewable energy companies to invest in this year.
By:  &  Charlie Hancox
Updated: Sep 23, 2022
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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 2022?

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 symbolCompany nameTrade now
1SEDGSolarEdge Technologies Inc.
2SPWRSunPower Corporation
3DQDaqo New Energy Corp.
4PLUGPlug Power Inc.
5SOLReneSola Ltd.
List selected by our team of analysts, updated 27th January 2022.

1. SolarEdge Technologies Inc. (NASDAQ: SEDG)

Founded in 2006 and headquartered in Herzliya, Israel, SolarEdge primarily designs, develops and sells direct current (DC) optimised inverter systems for solar photovoltaic (PV) installations worldwide. In essence, this technology plays a key role in the overall effectiveness of solar power systems.

However, SolarEdge’s diverse suite of products doesn’t end there. The company’s offerings also include residential, commercial, and large scale photovoltaics, electric vehicle charging, home energy management solutions, and energy storage and backup. Since its IPO in 2015, SolarEdge’s share price has surged in value by hundreds of per cent, generating a consistent annual revenue of over $1 billion.

This rapid growth and consistently strong financial performance is what has secured SolarEdge a spot on our list. It is one of the top-performing solar stocks of the last decade, and despite increased competition and the negative impacts of COVID-19, it has still managed to remain at the front of the pack. With a history of innovation, we wouldn’t be surprised to see this growth continue.

You can learn more about buying SolarEdge stock by clicking here.

 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.

You can learn more about buying DQ stock by clicking here.

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 PLUG’s 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.

1
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Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
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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.

Latest renewable energy news

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Chevron Corporation (NYSE:CVX) has returned to investors massively this year. At a price of $143, the stock has added 20% year-to-date. The stock touched a high of $180 before retreating. There is no hard math to explain Chevron’s strong gains in the year.  Chevron is a…
Oil prices have been on a tear higher in the last couple of years. After dipping into negative territory at the start of the COVID-19 pandemic, oil bounced and traded above $120/barrel in just two years. In other words, from negative $40/barrel, where future contracts settled in April 2020,…

Sources & references
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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.
Charlie Hancox
Financial Writer
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player, and as a budding film director, has… read more.