5 Renewable Energy Stocks to Buy for 2022 and Beyond
Interested in renewable energy stocks? These companies are leading the pack in sustainable energy production and technology.
For years, investing in renewable energy companies seemed more like an act of charity than a wise investment decision. That’s because the cost of generating renewable energy, up until recently, was greater than relying on traditional energy sources.
But all of that is starting to change. Recent data from the International Renewable Energy Agency (Irena) shows that nearly two-thirds of solar and wind energy plants built in 2020 can generate electricity cheaper than new coal new coal plants.
Furthermore, the International Energy Agency (IEA) says that renewables will surpass coal as the primary source of electricity in 2025.
Even with this march towards renewable energy, some investors may still be skeptical that renewable energy companies can make good long-term investments. To dispel that myth, consider that the stocks on this list are growing fast and have returned nearly 100% (and some of them have returned far more) over the past three years.
The fact is that some renewable energy companies are finding their footing in this fast-growing market and investors looking to benefit—while supporting a more sustainable future at the same time—have solid investment options to choose from.
Here are five renewable energy stocks you should consider snatching up right now to benefit from this inevitable shift towards renewable energy.
5 Renewable Energy Stocks to Buy for 2022
- SolarEdge Technologies
- SunPower Corporation
- Brookfield Renewable Partners
- ChargePoint Holdings
- NextEra Energy
SolarEdge Technologies (Nasdaq: SEDG)
- SolarEdge Technologies (NASDAQ:SEDG)
- Price: $252.18 (as of close May 19, 2022)
- Market Cap: $13.968B
- Dividend Yield: 0.00%
SolarEdge sells a variety of solar products for both commercial and residential uses, including smart modules for solar-powered cells, inverters, and energy storage.
The company has been climbing up the solar power energy ladder over the past few years and is now one of the leading photovoltaic (PV) inverter suppliers in the world.
SolarEdge’s two biggest markets are Europe and the United States, which will allow the company to grow even more as both of these parts of the world are investing heavily in solar power.
Unsurprisingly, the pandemic had a negative effect on SolarEdge’s business, but the company still managed to increase sales throughout the year and invest in new products. Management said earlier in the year that despite the pandemic, the company is “well-positioned for 2021 and beyond.”
Part of the optimism comes from the company’s moves into the electric powertrain market through SolarEdge’s e-mobility division. The company makes powertrains and electronics for e-motorcycles and commercial vehicles and was selected in early 2021 as the electric powertrain and battery supplier for a new light commercial vehicle European automaker Stellantis is making.
Investors will be glad to know that SolarEdge is profitable and, while it’s no indication that its shares will continue to climb, the company’s stock has skyrocketed 664% over the past three years.
SunPower Corporation (Nasdaq: SPWR)
- SunPower (NASDAQ:SPWR)
- Price: $16.68 (as of close May 19, 2022)
- Market Cap: $2.9B
- Dividend Yield: 0.00%
SunPower is a leader in rooftop solar panels and energy storage in the United States. It’s been the No. 1 commercial solar provider over the past three years. The company also sells residential products and has a total residential install base of 376,000 as of the middle of 2021.
Solar power is accelerating in the United States and over the past decade, solar power generation has skyrocketed 4,000% from about 2.5 gigawatts to over 100 gigawatts of solar capacity, according to the Biden Administration.
SunPower may have fared better than some of its peers during the height of the pandemic, with net income and adjusted EBITDA exceeding management’s guidance in 2020. The company also expanded its margins and generated positive cash flow for the full year.
With the company’s strong financial position, SunPower CEO Peter Faricy said earlier this year that SunPower is “on track to achieve our 2021 financial outlook and are well-positioned to drive growth and profitability in 2022 and beyond.”
SunPower has already proved to be a key holding for many renewable energy stock investors, with the company’s stock price spiking 538% over the past three years.
Brookfield Renewable Partners (NYSE: BEP) (BEPC)
- Brookfield Renewable Partners L.P. (NYSE:BEP)
- Price: $35.42 (as of close May 19, 2022)
- Market Cap: $16.756B
- Dividend Yield: 3.61%
With a large portfolio of renewable energy assets, global reach, and an attractive dividend, Brookfield is worth serious consideration for renewable energy stock investors.
The company has nearly 6,000 power-generating facilities, most of which are hydroelectric plants, but the company has its hands in solar, wind, and energy storage as well.
Despite a tough 2020, during which sales fell and the company reported a loss, Brookfield’s management said they “continued to broaden our operations as we look forward to a multi-decade opportunity…”
Part of that opportunity comes from the company’s massive 42,000 megawatts of operating and under-development assets. Brookfield says that all of its renewable power generation helps the planet avoid nearly 56 million tons of CO2 equivalent (CO2e) emissions every single year—the equivalent of planting nearly one billion trees.
Not only is the company helping to save the planet, but Brookfield estimates that nearly $100 trillion will be spent over the next 30 years as countries transition to lower-carbon alternatives. That’s a massive opportunity Brookfield is already tapping into.
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ChargePoint Holdings (NYSE: CHPT)
- ChargePoint Holdings Inc. (NYSE:CHPT)
- Price: $10.99 (as of close May 19, 2022)
- Market Cap: $3.692B
- Dividend Yield: 0.00%
ChargePoint isn’t exactly an energy company, but its business model is built on the idea that electric vehicles (EVs) are a more sustainable form of transportation and, therefore, the future of the automotive industry.
The company has an extensive network of EV charging stations across the United States, with more than 70% market share. By mid-2021, ChargePoint had 118,000 charging stations across the globe and has said that by 2025 that number could reach 2.5 million. That’s an increase of more than 2,000%!
ChargePoint has lots of growth potential in Europe. The company has more than 5,400 charging ports in Europe and recently acquired an e-mobility company called has·to·be. That acquisition will eventually give ChargePoint an additional 40,000 ports in Europe when the deal closes.
Investors should know that ChargePoint will likely face some stiff competition in the charging market in the coming years. But its leading position right now, as well as its moves to expand its reach in Europe, could help make ChargePoint a good long-term investment.
ChargePoint’s share price is up more than 118% over the past three years, and with the company expecting more than half of new cars sold in 2040 to be EVs, there’s likely more to look forward to from this company.
NextEra Energy (NYSE: NEE)
- NextEra Energy (NYSE:NEE)
- Price: $71.22 (as of close May 19, 2022)
- Market Cap: $138.419B
- Dividend Yield: 2.41%
Another key renewable energy stock player is NextEra Energy, which says that it is the largest generator of solar and wind energy, operating more than 17 gigawatts of power. And the company is on pace to nearly double that amount by 2025.
NextEra boasts some pretty impressive sustainability statistics, including the fact that Florida Power & Light (FPL), a subsidiary of NextEra, has reduced its use of oil by 98% over the past decade.
Not only is the company using renewable energy to better the environment, but that energy is also cheaper for many of its customers. The company said that in 2020, FPL’s energy costs for residential bills were about 30% lower than the national average.
NextEra spent more than $14 billion in building new energy infrastructure in 2020 and it’s just getting started. By 2022, the company expects to spend between $50 billion to $55 billion in planned infrastructure spending in America.