Under the administration of President Donald Trump, America’s energy priorities have shifted dramatically in favor of domestic oil and gas at the expense of renewable energy.
In one example, Trump issued a moratorium on new federal approvals for wind farms, including the massive offshore networks of turbines that can provide power to coastal cities. He also ordered a withdrawal from the Paris climate agreement and rescinded a goal for 50% of U.S. auto sales to be electric vehicles.
“That pushback, however, is more of a speed bump than a stop sign due to the fact that Trump will not be relevant in the longer term and many of his followers are part of the renewable energy business infrastructure,” says Angelo DeCandia, professor of business and accounting at Touro University in New York. “Though they may be reluctant, currently, to buck him, at the end of the day they are businesspeople who will pursue what is best for their businesses.”
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He says stock market investors should take note of this, as some renewable companies will turn out to be winners, and the current downturn may prove to be a good entry point.
“Opportunity remains for those investors willing to do their homework and be more selective in their stock picks, especially in an industry that may suffer some pain in the shorter term,” he says.
Arif Gasilov, founder of sustainability and ESG consulting company Gasilov Group, notes the renewable energy sector has taken some hits, but says the long-term story hasn’t really changed. “It’s going to be choppy, no doubt,” he says. “But I still think we’re heading toward more capital moving into renewables, not less. Especially as climate risk gets priced in more seriously by institutional allocators.”
With that backdrop, here’s a look at six top renewable energy companies to consider:
| Stock | Industry Focus |
| NextEra Energy Inc. (ticker: NEE) | Electric utility, green hydrogen, battery storage |
| Clearway Energy Inc. (CWEN) | Clean energy generation, battery storage |
| Sunrun Inc. (RUN) | Affordable distributed solar energy |
| Brookfield Renewable Corp. (BEPC) | Diversified hydro, wind and solar projects |
| Fluence Energy Inc. (FLNC) | Energy storage products and services |
| HA Sustainable Infrastructure Capital Inc. (HASI) | Climate solution investments |
NextEra Energy Inc. (NEE)
Investors interested in the renewable energy sector can choose between well-established companies that have shown that they can navigate the challenging sector or seek out younger companies that present greater upside at a greater risk because of their lack of track record, DeCandia says.
NextEra, which often makes lists of top renewable energy companies, is one of the former. The company has a regulated utility segment that generates, transmits, distributes and sells electricity in Florida. Another segment produces electricity from renewable sources, including wind and solar. The company is also involved with green hydrogen, battery storage and nuclear plants.
As a utility, NextEra can fit into portfolios as a defensive play. While it likely won’t outperform growth stocks in the tech sector during times of risk-on market sentiment, for example, it also may not decline as much when the market turns sour because people need electricity in any economic environment.
DeCandia points to NextEra’s decades of experience and says the company is attractively valued for new investors. “Moreover, investors can receive a dividend of around 3% relative to the current price while they wait for this sector to take off,” he says. “Not a bad deal.”
Another aspect to consider is NextEra’s long-term debt ratio, which he says is “quite reasonable” for a company in the capital-intensive utility business. Still, NextEra’s interest coverage is relatively low, which means the dividend could be at risk if it has to conserve cash to meet interest payments, he says.
“Investors should not buy this stock solely for the dividend, but rather as a longer-term play for the potential market growth,” DeCandia says.
Clearway Energy Inc. (CWEN)
For a smaller company, DeCandia points to this clean energy firm that operates generating capacity in 26 states, including 9.1 gigawatts of wind, solar and battery energy storage assets. The company’s assets generate enough electricity to power more than 2 million homes.
Although it’s more highly leveraged than NextEra, probably because it is a much younger company, DeCandia says Clearway remains a buy, or outperform, pick among many Wall Street analysts because of a projected double-digit growth rate.
“It is still at an earlier stage of development and is much more of a bet on the future than the present,” DeCandia says. “Clearway Energy is not a sure thing but is a reasonable risk in a sector with lots of potential.”
DeCandia also notes that the company delivers clean energy at a low cost compared with its revenue.
“In the long run, strong revenue wins the game, but the biggest prizes will go to the companies that can create the product with relatively low cost due to efficiencies in the manufacturing process,” he says.
Sunrun Inc. (RUN)
Among the many developments that promise to aid the energy transition away from fossil fuels, “distributed solar” is one of the most common.
This refers to putting solar panels near the point of consumption, such as on house or business rooftops, as opposed to more centralized power generation, such as coal plants, that rely on a more extensive grid to get electricity where it needs to go.
Sunrun is attractive because of its focus on making solar affordable to the masses and its ability to offer flexibility in financing to lower the barrier to entry, says McKenzie Bolduc, vice president of operations for the Coalition for Community Solar Access.
“Their lease- and subscription-based business models allow consumers to save money without making large capital investments, making them strong players in the distributed energy space,” she says.
[SEE: Impact Investing for Beginners]
Brookfield Renewable Corp. (BEPC)
Investors looking to combine income with the potential for long-term growth can consider Brookfield Renewable Corp. Brookfield owns and operates a wide variety of renewable energy projects, including hydro, wind and solar.
The firm has more than $1 trillion in assets under management and operates on five continents, giving it jurisdictional diversification that can add stability to a natural resources company. For example, while the U.S. is tilting toward more oil and gas, Europe is more focused on renewable energy.
Fluence Energy Inc. (FLNC)
Battery storage is a key part of the decarbonized economy. Because solar and wind generation are intermittent based on when the sun is shining and the wind is blowing, energy storage systems offer a way to help stabilize electric grids.
Fluence, an energy storage products and services company, has a global presence and is a joint venture between German multinational technology conglomerate Siemens AG (OTC: SIEGY) and American utility AES Corp. (AES). Those companies provide a good amount of stability in an industry where there are plenty of startups that might have great ideas but could struggle to get funding.
HA Sustainable Infrastructure Capital Inc. (HASI)
This U.S. firm provides capital to companies involved in energy efficiency, renewable energy?and other sustainable infrastructure markets. HASI’s portfolio includes behind-the-meter energy efficiency; distributed solar and storage investments; grid-connected wind, solar and storage projects; fleet decarbonization; and ecological restoration. HASI says it is the first U.S. public company solely focused on climate solution investments.
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6 Best Renewable Energy Stocks to Buy originally appeared on usnews.com
Update 04/29/25: This story was published at an earlier date and has been updated with new information.
