The list of best Renewable Energy Stocks in 2022 has been shared below. If you are confused about your investment and wish to know more about some of the best renewable energy companies, check the details below.
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| Best Renewable Energy Stocks 2022 |
What is there on this good green earth that does not require energy to function? From a more contemporary point of view, fossil fuels are still the number one energy source on this planet. However, we cannot say that there hasn’t been a marked, gradual veering towards renewable energy sources, especially now that we see the exhaustible nature of these resources.
But we are not geologists or environmentalists. We are looking at this from the perspective of, well, money. That’s right we are talking about renewable energy stocks and which ones are the best for you to invest in.
In this post, we will list some of the best renewable energy companies worth investing in, in 2022.
Renewable energy
So what is renewable energy? Let’s go back to fifth grade and revisit some definitions. According to the United Nations, renewable energy is energy that is derived from natural sources that are replenished faster than it is consumed. Two examples of this are solar and wind energy, neither of which can be exhausted.
On the other hand, the traditional energy sources, fossil fuels, like oil, gas, and coal, are not renewable. Their replenishment rate is so slow that no matter how little we use them, their overall quantity in the world will continue to drop. These are non-renewable energy sources. There is also the negative aspect of being detrimental to the environment due to the emission of greenhouse gases when these fuels are burned.
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Types of renewable energy
- Solar energy
If we could somehow harness even a small quantity of the net solar radiation that this planet receives, then we’d be sorted. At an estimate, the amount of solar energy we receive from the sun is 10,000 times more than we need. And solar energy can be used in almost every scenario, like cooling, electricity, fuel, heating, etc. Plus, it is universally available.
- Wind energy
This is the second most available energy source we have. Wind turbines convert moving air through a rotating action into usable energy. You can harness wind energy on land or in offshore water. Offshore wind farms are particularly effective in this scenario as there are no buildings and development to block the wind.
- Hydropower
Currently, the largest source of ‘renewable’ energy of electricity is hydropower (we put those quotation marks to show you that even hydropower is becoming a non-renewable source as the net volume of potable water is going down worldwide). Hydropower needs infrastructure to function properly. It is also affected by natural calamities that impact water volume, like drought. Hence, it is not 100% reliable for large-scale use.
- Bioenergy
Biomass is a collective name given to naturally occurring substances like charcoal, manure, and wood. Mainly utilized in rural areas, these materials are used to generate energy. This is not entirely clean energy, as there is a small emission of greenhouse gases. The best use of bioenergy is in small-scale projects.
- Geothermal energy
The earth gradually gets hotter as we approach its core. That heat is the source of geothermal energy. This source of energy is being utilized for more than a century.
Well enough knowledge on renewable energy as an environmentalist, now we should head over to the info on renewable energy stocks.
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Renewable energy stocks
Now we come to business. As interest in renewable energy rises, interest in renewable energy stocks also rises. Below are some of the most lucrative renewable energy stocks in 2022 you can choose to invest in.
- First Solar
First Solar, Inc. is an American company that manufactures and provides solar panels, utility-scale PV powerplants, and also supporting services like finance, construction, maintenance, and the like. Since its inception in 1999, it has managed to garner a total of $2.9 billion in net sales as of 2021. Its products have reached more than 45 countries, with a total energy production of about 9 gigawatts worldwide.
NASDAQ’s nomenclature is FSLR, and this company has reached $132.31 from $88.58 as of September 27, 2022. As a percentage, it is a 50% increase. Analysts, however, say that it won’t cross the current threshold, the average 12-month price target being $133.26.
17 analysts analyzed one of the renewable energy stocks - First Solar in September, eight of which were of the opinion of holding it, six of which were calling it a buy, and the remaining labeled it a strong buy. Your turn to analyze it now.
- NextEra Energy
Having a staggering generating capacity of about 58 gigawatts, NextEra Energy is an American company with revenue passing the $18 billion mark in 2020.
In US and Canada, it has about 14,900 employees and is the largest electric utility holding company in terms of market capitalization. This company owns Florida Power & Light Company. NextEra Energy Resources LLC and other subsidiaries of nuclear power plants in Florida, New Hampshire, and Wisconsin.
By 2045, NextEra Energy aims to eliminate all carbon emissions from its operations. Using solar, wind, nuclear, green hydrogen, etc, it says it can achieve this goal. Its “Real Zero” plan can create up to 150,000 jobs and increase the GDP by $15 billion in Florida, so it claims.
On the stock market, this one of the renewable energy stocks company is down for the year. From $91.66, it has descended to $81.08 as of September 27, 2022. The forward dividend is $1.66, the yield is 2.01%, and the average 12-month price target is $96.99. Out of fifteen analysts, five say it’s a string buy, eight say it’s a buy, and two tell us to hold it.
- Brookfield Renewable Partners
Brookfield Renewable Partners LP (BPE) operates with many different sources. It has a generating capacity of about 8,100 MW of hydropower from 229 generation facilities, 5,400 MW of wind energy, 2,600 MW of solar energy, 1,400 MW from its distributed generation portfolio, and 2,700 MW from its pumped storage portfolio.
Starting from $35.85 on January 3 this year, it had an up-and-down trend. In March, it was $41.28. In June, $33.41. In August, $40.33. On September 7, 2022, it was $32.20. The forward dividend is $1.28 and the yield is 3.63%, with the average 12-month price target being $41.88.
Out of four analysts of this renewable energy stocks in September, two were strong buys, one was buying, and one was holding. Thirteen analysts gave recommendations in August as well. In this case, 10 were saying buy, one strong buy, and two hold.
- SolarEdge Technologies
From inverters to power optimizers, SolarEdge Technologies (SEDG) designs, manufactures and installs solar energy systems on five continents in 133 countries. Since 2010, it has shipped over 31.5 gigawatts of inverter systems.
This renewable energy stocks company is down a little this year. At the beginning of 2022, it was at $282.45. On September 27, 2022, it was at $249.58.
Out of twenty-seven analysts, six were strongly buying, 14 were buying, and five were holding the stock. The remaining two said the company is an underperformer. The 12-month average price target is $357.50.
- iShares Global Clean Energy ETF
iShares Clean Energy ETF (ICLN) is an exchange-traded fund to track the outcomes of the index of global equities in this renewable energy sector. Its holds positions like Enphase Energy, Inc., SolarEdge Technologies, Inc., First Solar, Inc., Consolidated Edison, Inc., Plug Power, Inc., and more. The fund is down by 7.10% this year to date. The expense ratio is 0.40%.
Here’s the thing. If the world has to exist, it needs energy. And logically, that source has to be renewable. So, if the stock market exists ten years from now, you can bet that the stack of renewable energy companies in it will have increased. It’s worth investing in them.
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