Top 5 Renewable Energy Stocks to Watch

If you want to invest in a greener future, renewable energy stocks can help you do that.
Alana Benson
By Alana Benson 
Edited by Arielle O'Shea

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

There are lots of reasons to be excited about advances in renewable energy: The field is helping to preserve the environment and creating new industries, and may make electric cars more affordable. If you want to get your investment portfolio involved in the green revolution, you can start by investing in renewable energy stocks.

Renewable energy stocks

The list below includes stocks involved in the production of renewable energy. Keep in mind that performance is only one data point, and stocks that are currently performing well may not be the best-performing stocks next year — or even next week. Investing in individual stocks is inherently risky and should be done with caution.

» Don't want to pick your own investments? Check out the best robo-advisors for socially responsible investors



1-Year Return

Vistra Energy Corp.



TransAlta Corp.



Clearway Energy Inc.



Atlantica Yield plc



Kenon Holdings Ltd.



Stock data is current as of Mar. 29 and is intended solely for informational purposes, not for trading purposes.

» Excited about energy stocks? Compare options among the best brokers for stock trading

Invest in what matters
Support the social and environmental initiatives you believe in, all while building your portfolio.

Why should I invest in renewable energy?

Many people have personal or ethical reasons to invest in renewables, but the chance to help the planet isn’t the only potential benefit of including renewable energy in your portfolio. Investing in alternative energy can help diversify your holdings. When oil and other traditional energy resources are experiencing volatility, renewable investments may act as a stabilizing force.

» View our list: The best EV stocks

Renewable energy is also becoming more affordable, making it more enticing to buyers and potentially to investors. The price of solar energy has dropped, as has the cost of solar panels themselves. Wind energy is also one of the fastest-growing energy sources in the world, and one of the cheapest.

» Learn more: How the Inflation Reduction Act could affect renewable energy stocks.

An easier approach: ESG funds

If you’re excited about investing in wind and solar energy, there’s an easier way to do it than researching individual companies: mutual funds. These funds are like baskets of stocks — you invest in one fund and gain exposure to many companies all at once. ESG funds are graded in terms of their performance when it comes to environmental, social and governance factors. A fund that scores well in the “environmental” category likely avoids investing in companies with a large carbon footprint and may invest in multiple clean energy stocks.

According to independent research firm Morningstar, the number of sustainable index mutual funds and exchange-traded funds has more than doubled over the last few years — as has the money invested in them — giving sustainable investors more choice as to where they invest.

» Find alternative energy funds: Explore top-rated ESG funds

Neither the author nor editor held positions in the aforementioned investments at the time of publication.
Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.