Solar power is increasingly establishing itself as a go-to weapon in the fight for a low-carbon future. According to the Solar Energy Industries Association, solar accounted for 67% of all new electricity generation added to the U.S. grid in the first half of 2024. In other words, 2 out of every 3 new watts of power added to the grid came from solar panels.
That’s a great sign for those looking to move away from fossil fuels. There’s an obvious problem to this dynamic, however. Simply put: The sun isn’t always shining, but energy demand doesn’t go away.
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That’s where energy storage comes in, offering the potential for power to be held in reserve until it’s needed by homes or businesses. As solar continues to ramp up — alongside wind power and other similarly intermittent green energy sources — the need for grid-scale solutions to support that growth will only increase in kind.
The following companies are well positioned to benefit from this dynamic energy storage market. They are either providing batteries or related electrical components and services, and could see significant upside if this megatrend continues in the coming years.
Here are seven of the top energy storage stocks to watch today:
| Stock | Implied upside/downside from Jan. 8 close* |
| Panasonic Holdings Corp. (ticker: OTC: PCRHY) | -11.6% |
| NextEra Energy Inc. (NEE) | +22.6% |
| Albemarle Corp. (ALB) | +35.4% |
| Fluence Energy Inc. (FLNC) | +56.6% |
| Enphase Energy Inc. (ENPH) | +36.2% |
| Schneider Electric SE (OTC: SBGSY) | +5.3% |
| ABB Ltd. (OTC: ABBNY) | -3.0% |
*Implied upside/downside to reach the average analyst price target.
Panasonic Holdings Corp. (OTC: PCRHY)
The largest producer of lithium batteries for use in electric vehicles and grid-scale storage is a Chinese company called Contemporary Amperex Technology Co. Ltd. (SHE: 300750) Unfortunately, CATL does not trade even on the “pink sheets” as an OTC stock, and isn’t particularly accessible to investors outside of China. That makes Panasonic the next-largest battery company available for U.S. investors. With deep relationships with the EV industry thanks to early support of Tesla Inc. (TSLA), Panasonic is a force in the energy storage space. It’s admittedly not a focused play, however, as the Japanese multinational electronics company has its fingers in other pies like factory equipment, HVAC equipment and consumer electronics. Still, it’s the biggest lithium battery company with accessible shares.
The average analyst price target is $8.90, implying 11.6% downside from Panasonic’s Jan. 8 closing price of $10.07.
NextEra Energy Inc. (NEE)
Another indirect play on the energy storage megatrend is Florida-based NextEra, the most valuable publicly traded utility out there with projected fiscal 2025 revenue of almost $30 billion. Utilities can generally be sleepier than other large-cap stocks, but the unrivaled scale of NEE gives it a unique opportunity to look beyond simple power generation and into next-gen grid storage to serve customers. As the world’s largest generator of wind and solar energy, it is critical to NextEra to figure out how to efficiently store and deploy solar and wind energy during peak demand periods. That naturally gives it a place as a leader in the future of energy storage and battery technology.
The average analyst price target is $86.65, implying 22.6% upside from NEE stock’s Jan. 8 closing price of $70.66.
Albemarle Corp. (ALB)
As it’s hard to find a large-scale company laser-focused on lithium batteries, Albemarle is worth a look, since it’s the largest and most established lithium miner on the planet. Founded in 1887, this firm is a key part of the global supply chain for battery metals. It may not have as much flash as an EV manufacturer, or as much upside from the brands that are consumer-facing, but it’s actually a more direct play on the megatrend of next-gen energy storage. Unfortunately, ALB is fundamentally a commodity stock so it is tied to lithium prices — and while end-users of this battery metal were happy that pricing remained soft in 2024 on the back of oversupply, that trend meant lower profits for the raw materials producers out there like Albemarle.
The average analyst price target is $118.32, implying 35.4% upside from ALB stock’s Jan. 8 closing price of $87.38.
Fluence Energy Inc. (FLNC)
A hybrid energy storage and artificial intelligence play, Fluence offers energy storage products with integrated software in addition to the batteries and hardware itself. Its solutions include a grid-scale industrial-strength energy storage product, and that makes FLNC stock a great way to look at larger-scale energy storage applications. The fact that it also provides engineering and delivery services to support the deployment of its products also gives it a unique way to invest in the ongoing maintenance of any “smart grid” technology in the future. The company is small, valued at just $3 billion or so, and is running at roughly break-even levels. It also suffered a rather bleak decline of about 20% in 2024 even as the rest of the market marched higher. In other words, there’s definitely a high degree of risk here — but Fluence does offer investors exposure to a startup with the kind of growth potential that energy investors may be drawn to.
The average analyst price target is $26.77, implying 56.6% upside from FLNC stock’s Jan. 8 closing price of $17.09.
Enphase Energy Inc. (ENPH)
Enphase manufactures and sells both commercial-scale and home energy solutions, including both the panels themselves as well as “microinverters” that help convert that energy into usable — and storable — power. It also is a battery specialist, building on-site solutions that allow for more practical use of renewable energy based on real-world demand. Unfortunately, volatility and competition in the solar space has weighed on shares of ENPH stock. But while that line of the business disappointed recently, in its last earnings report in late October 2024 the company reported better-than-expected shipments of its IQ Batteries line to double the sales it posted in the year-ago period. That should give investors interested in the energy storage side of Enphase something to be optimistic about heading into 2025.
The average analyst price target is $94.90, implying 36.2% upside from ENPH stock’s Jan. 8 closing price of $69.66.
Schneider Electric SE (OTC: SBGSY)
Schneider Electric may not be that recognizable to U.S. investors, but the stock is a Fortune Global 500 company, meaning it is among the largest corporations worldwide based on total revenue. That top-line figure is approaching $40 billion — which, by way of comparison, puts it on par with the revenue generated by domestic giants such as Salesforce Inc. (CRM) and Starbucks Corp. (SBUX). The company has roots in industrial automation and electricity monitoring, but has moved into “microgrids,” including wind farms and solar arrays. Founded in 1836 and headquartered in France, this is a firm with deep roots in the European Union that will play a critical role in the clean energy transition for the region. Further, an industrial-scale energy storage play like Schneider may be free from some of the volatility that more consumer-reliant companies like Enphase could face in this evolving market.
The average analyst price target is $54.43, implying 5.3% upside from SBGSY stock’s Jan. 8 closing price of $51.68.
ABB Ltd. (OTC: ABBNY)
Of course, if you want to get right to the building blocks of energy storage then a firm like ABB Ltd. is worth a look. ABB isn’t a particularly flashy company; it’s focused on all manner of power solutions and electrical engineering services, from industrial circuit breakers and complex wiring to uninterruptible power supply solutions. That last area is, of course, just a fancy way to refer to battery backups. In the age of climate change, cybersecurity risk and geopolitical instability, it’s standard operating procedure for many firms to think about independent power supplies. ABB is a leader in this space, meaning that no matter what energy storage components gain market share, it will play a key role in helping any business install and maintain its modern power solutions and backup batteries.
The average analyst price target is $53.15, implying 3% downside from ABBNY stock’s Jan. 8 closing price of $54.81.
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7 Energy Storage Companies and Grid Stocks to Buy originally appeared on usnews.com
Update 01/09/25: This story was previously published at an earlier date and has been updated with new information.
