Top 5 ASX renewable energy shares to watch in 2025  

What are renewable energy shares?

Renewable energy shares on the ASX span the entire clean energy value chain, from companies mining lithium and copper for electric vehicles (EV) batteries, to major utilities transitioning coal plants to solar farms, and to innovators converting landfill waste into renewable electricity.

The ASX hosts over A$34 billion worth of renewable energy market capitalisation, with opportunities ranging from established energy giants like Origin Energy to specialist players like LGI Limited. Here's how we've identified the five companies best positioned to benefit from Australia's race to 82% renewable power by 2030.

Why trade ASX renewable energy shares?

Australia's renewable energy sector is experiencing a historic transformation. The federal government's commitment to 82% renewable power by 2030 means the industry must dramatically scale up, creating substantial trading opportunities for investors who position themselves early.

Massive government backing drives growth

With over A$20 billion in federal clean energy funding committed and state governments adding billions more, renewable energy companies have unprecedented financial support. This government backing reduces investment risk while accelerating project development timelines.

Institutional money is flooding in

Major Australian fund managers including AustralianSuper are rapidly increasing clean energy allocations, while ESG-focused ETFs like Australian Ethical and products from Vanguard and Martin Currie are driving billions into the sector. This institutional demand creates sustained upward pressure on quality renewable energy stocks.

Australia's natural advantages

Australia's exceptional solar and wind resources, combined with world-class mining capabilities for critical minerals like lithium and copper, position ASX renewable energy companies to capture both domestic growth and lucrative export opportunities as the global economy decarbonises.

Risks of trading renewable energy shares

While trading renewable energy shares has its advantages, there are a few pitfalls to watch out for before share trading or CFD trading these stocks:

• Governmental policy: for the most part, countries around the world are shifting towards cleaner energy sources, which is good for the companies involved in the renewable energy zeitgeist. But there are some, such as the US, which are stepping away from clean energy reforms – such as the Trump administration undoing much of the renewable energy work enacted by Biden’s previous administration
• High set-up costs: the expense of setting up renewable energy projects can be significant; this can negatively impact renewable energy company profits and share prices
• Supply chain risks: currently, 79% of polysilicon, which is used to manufacture solar panels and wind tech, comes from China.³ If there are supply shortages in the region, it can pose a serious threat to clean energy operations

Top 5 ASX renewable energy shares to watch in 2025

Overview of the shares in this article

The shares listed in this article can all be traded via share trading the stocks themselves on our share trading account and all can be accessed via CFD trading through us.

These are the top five renewable energy companies listed on the ASX by market cap.

1. Origin Energy Limited (ASX: ORG)
 

Industry: Retail energy provision

Market cap: A$20.69 billion⁴

Origin Energy is renowned as the operator of Australia's largest coal-fired power plant at Lake Macquarie in New South Wales. However, the company has acknowledged the shift away from fossil fuels and is transitioning to clean energy facilities.

Origin Energy is a leading player in Australia's solar power sector and one of the country's leading home solar panel installers.

It has purchase agreements with a slew of solar and wind power farms across Australia, including the 110 MW Darling Downs Solar Farm and the Stockyard Hill Wind Farm in Victoria.

The company has seen strong performance from its Australia Pacific LNG operations and has invested significantly in battery storage. Its Eraring Battery project is the largest total dispatch duration of an under-construction battery project in the southern hemisphere.

Highlights:

• The company has a 7.8 GW generation portfolio, which includes 3 GW of gas-fired generation⁵
• Profits in the latest half-year report were A$1.017 million⁶
• Has 4,714,000 accounts, up 57,000 from the previous period⁷

2. AGL Energy Limited (ASX: AGL)
 

Industry: Retail and commercial energy provision

Market cap: A$6.58 billion⁸

As one of Australia’s oldest energy suppliers, AGL focuses on providing energy services to residential, small business and enterprise customers.

In July 2025, the company announced its acquisition of the Yadnarie solar and long-duration energy storage project from Photon Energy. The Yadnarie project is located near Cleve on the Eyre Peninsula in South Australia and uses RayGen’s PV Ultra and Thermal Hydro technology.

This project provides the company with up to 150 MW of solar capacity, 90 MW of thermal energy and 720 MWh (eight hours) of energy storage.

The company also recently announced its ‘three for free’ plan, where households (within usage limits) get three free hours of electricity per day.

Highlights:

• Customer churn was lower than the broader market due to AGL’s strong focus on customer retention – according to its most recent half-year report⁹
• Underlying profit for H125 was A$373 million¹⁰

3. IGO Limited (ASX: IGO)
 

Industry: Mineral exploration and mining

Market cap: A$4.06 billion¹¹

IGO is an exploration and mining company with a focus on metals that are crucial to the energy storage and renewable energy sectors. It has operations in nickel, copper and lithium, and has a goal to transition the world to global decarbonisation.

These mined materials are used in EVs, energy storage, and in grids and infrastructure used to transmit and distribute electricity.

The company has a 100% stake in the Nova Operation in Western Australia (WE) and 30% in the Tropicana Gold Joint Venture (together with AngloGold Ashanti) – also in WE.

In its latest quarterly earnings report, IGO announced it had an underlying earnings before interest, taxes, depreciation and amortisation (EBIDTA) of A$34 million and underlying free cash flow of A$49 million.¹²

Highlights:

• Strong balance sheet of A$284 million, up A$38 million as per the latest quarterly earnings results¹³
• Full-year production guidance of 1.35 – 1.55 Mt is on course at the Greenbushes Lithium Mine¹⁴
• Beyond FY25, the Nova Operation is expected to produce between 15,000 and 18,000 tons of contained nickel over its remaining life of mine (LOM)¹⁵

4. Sims Limited (ASX: SGM)
 

Industry: Recycling

Market cap: A$3.18 billion¹⁶

Founded in 1917, Sims Limited is a global leader in metal recycling and circular services for technology, operating more than 155 facilities across 13 countries.

After acquiring the US company Metal Management in 2008, Sims has gone on to become the biggest public company in the metals and electronics recycling industry globally.

Its strategic focus on North America and recent acquisitions aim to drive margin growth and operational efficiencies. It sells 9.8 tons of secondary metals globally each year, with 4.9 tons of ferrous and non-ferrous metals sold to North American interests.

The company’s main purpose is to rid the world of waste for the sake of the planet.

Highlights:

• Dividend yield is 1.21%, but remember, a high or low yielding dividend share is not an indicator of a company’s financial health on its own¹⁷
• From 12 April 2025 to 25 July 2025, the company’s share price rose from A$12.51 to A$16.12

5. LGI Limited (ASX: LGI)
 

Industry: Biogas recovery and energy conversion

Market cap: A$266.43 million¹⁸

LGI recovers biogas from landfills and converts it into renewable electricity and saleable environmental products. It works to solve the environmental problem of methane gas release (which is 28 times more potent than CO2), and creates solutions for engineering and landfill management to reduce methane emissions.

The company estimates that more than 200 of the 1,100 operational landfills in Australia could be ready for its solutions, with another 100 yet to be assessed. This indicates that there’s room for growth – especially when coupled with its long government contracts.

It continues to focus on expanding its carbon abatement solutions and is poised to benefit from the growing demand for renewable energy.

Highlights:

• It operates eight power stations and has 17 carbon credit sites¹⁹
• H1 2025 revenue jumped 5% compared to H1 2024’s²⁰
• A 50% increase commissioned in the Canberra Power Station, along with the Eastern Creek Sydney (BINGO) power station to come online in 2025, strongly indicates an increase in MWhs generated for this financial year²¹

How to trade renewable energy shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX renewable energy shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX renewable energy shares available for direct ownership
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about renewable energy shares 

Footnotes

1. Australian Government Department of Climate Change, Energy, the Environment and Water, 2022
2. Calculated from individual company market caps: Origin Energy (A$20.69bn) + AGL Energy (A$6.58bn) + IGO Limited (A$4.06bn) + Sims Limited (A$3.18bn) + LGI Limited (A$0.27bn) = A$34.78bn total, TradingView, July 2025
3. Montel Energy, October 2024
4. TradingView, July 2025
5. Origin Energy half-year results, February 2025
6. Origin Energy half-year results, February 2025
7. Origin Energy half-year results, February 2025
8. TradingView, July 2025
9. AGL Energy half-year report, February 2025
10. AGL Energy half-year report, February 2025
11. TradingView, July 2025
12. IGO quarterly earnings results, March 2025
13. IGO quarterly earnings results, March 2025
14. IGO quarterly earnings results, March 2025
15. IGO quarterly earnings results, March 2025
16. TradingView, July 2025
17. TradingView, July 2025
18. TradingView, July 2025
19. LGI half-year results, February 2025
20. LGI half-year results, February 2025
21. LGI half-year results, February 2025
22. Market capitalisation data varies by source and date. Refer to current ASX listings for latest figures.
23. VanEck Global Clean Energy ETF product disclosure statement, 2025. Management fees subject to change.
24. Origin Energy announcement, Eraring Battery To Further Expand, Becoming Largest In The Southern Hemisphere, November 2024
25. AGL Energy announcement, AGL acquires Yadnarie solar and long duration energy storage project, July 2025
26. Multiple market sources including Fastmarkets and Investing News Network, 2024-2025. Lithium prices crash below $10K, hitting a 4-year low, May 2025