Best green energy stocks to watch

Green energy stocks in brief

Green energy stocks refer to companies involved in environmentally friendly and sustainable energy production, storage and distribution, including solar, wind, geothermal, biofuels and hydro power. The general emphasis is on reducing carbon footprints and improving energy efficiency.

While there's significant crossover between green energy and renewable energy, green energy is widely viewed as a specific subset of renewable energy, meaning that while most green energy sources are renewable, not all renewable energy sources are green. Green energy has a specific focus on environmental credentials, but also includes firms engaged in energy storage, efficiency solutions and carbon capture technologies.

A good example is wood. Burning wood is clearly renewable because trees are renewable, but is arguably not green because it releases pollution into the atmosphere. Nuclear power is not renewable because the supply of uranium is finite, but it's arguably green because of the low associated carbon emissions, though detractors disagree given the waste created.

Green energy companies tend to have higher valuations than traditional oil and gas giants, because of higher growth expectations. They also usually reinvest profits into expansion, where the oilers pay out dividends and share buybacks, but in the longer term this is widely expected to pay off as carbon pricing, emissions regulations, falling hydrocarbon reserves and environmental concerns reshape the energy market.

In particular, green energy investors are interested in global decarbonisation efforts, which attract political support, though the policy landscape has become more complicated. In the US, elements of the Inflation Reduction Act support have faced rollback pressure, with tax credits such as Section 45X facing a phase-out between 2030 and 2033, while the EU Green Deal and Chinese green targets continue to provide structural support. There are also significant corporate efforts to become green, with both Google and Amazon committing to clean power purchase agreements to help meet surging AI data centre power demand, an increasingly important driver for the sector.

Compounded with falling costs for solar panels, wind turbines and battery storage, the sector remains attractive. But as with all investments, there are risks. Green energy is capital-intensive and subject to the whims of changing government policy. Inflation and supply chain issues persist, and the industry is to some extent reliant on higher oil and gas prices, because if traditional energy prices fall, the green transition may slow.

How to invest in green energy stocks with us

To invest in green energy stocks, learn more about the sector, open a share dealing account or download the IG Invest app, search for green energy stocks or ETFs on our platform, choose how many shares you'd like to buy, and place your deal.

Investors look to grow their capital through share price returns and dividends, if paid. But the value of investments can fall as well as rise, past performance is no indicator of future returns, and you could get back less than your original investment.

We also offer many green energy-focused ETFs, including the popular iShares Global Clean Energy ETF, which has a 0.41% expense ratio and tracks clean energy stocks from around the world. Top holdings include First Solar and Iberdrola.

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Top green energy stocks to watch

These are some of the most popular companies in the green energy sector.

NextEra Energy (NYSE: NEE)

NextEra Energy is the largest green energy company in the United States and focuses primarily on wind and solar power. The company operates through multiple subsidiaries, including Florida Power & Light and NextEra Energy Resources. It owns thousands of wind turbines across North America and has one of the largest solar energy portfolios in the world, with a market capitalisation of around $190 billion.

NextEra is popular for its steady growth, strong balance sheet, dividends and long-term commitment to renewable energy. It reported 8.2% earnings-per-share growth in 2025 and anticipates maintaining around 8% annual growth through at least 2032, having added a record 13.5 gigawatts to its backlog last year. It has also grown its dividend for more than 30 consecutive years, making it a favourite among more conservative investors in the sector.

Brookfield Renewable Partners (NYSE: BEP)

Brookfield Renewable Partners owns and operates one of the world's largest portfolios of renewable energy assets, including hydro, wind, solar and energy storage. Unlike many pure-play solar or wind companies, Brookfield's diversified portfolio allows it to generate stable revenue streams across multiple green sources, including very stable hydroelectric assets, making it a popular choice for defensive and income-focused investors.

The company offers an attractive dividend yield and expects to deliver over 10% annual funds-from-operations per share growth while boosting its dividend by 5-9% annually, supported by long-term power purchase agreements agreed with clients worldwide.

First Solar (NASDAQ: FSLR)

First Solar is one of the largest US-based solar panel manufacturers, specialising in thin-film solar technology. Unlike traditional silicon-based panels, First Solar's cadmium telluride panels perform better in hot and humid conditions, making them ideal for utility-scale solar farms. The company focuses on large-scale projects, giving it a specific niche.

First Solar benefits from US government incentives promoting American-made solar technology, and its domestic manufacturing base gives it independence from Chinese crystalline silicon supply chains. It reported record first-quarter revenue in 2026 and expects Section 45X tax credit monetisation worth over $2 billion in 2026. Risks to watch include underutilisation costs and the scheduled phase-out of Section 45X credits between 2030 and 2033.

Tesla (NASDAQ: TSLA)

Tesla is widely recognised as the electric vehicle trailblazer, but its contributions to green energy go beyond cars. The company is a large producer of solar panels and specialises in energy storage products like the Powerwall and Powerpack. These storage solutions help stabilise power grids while allowing homes and businesses to maximise their green energy use, and its energy storage division has become an increasingly important part of the investment case.

Tesla's integration of EVs and solar energy under a single brand makes it unique among clean energy companies, though its share price is notably volatile and heavily influenced by sentiment around CEO Elon Musk and the wider EV market.

Vestas Wind Systems (CPH: VWS)

Vestas Wind Systems is the world's largest wind turbine manufacturer, with operations across more than 80 countries. The Danish company designs, manufactures, installs and services wind turbines, both onshore and offshore, playing a critical role in global wind energy adoption.

Vestas is a key investment in the sector not only because of its continued R&D spend, but for its established market presence and high-margin servicing segment. With governments worldwide setting ambitious wind energy targets, Vestas is positioned to benefit from increased demand, though it has historically been exposed to supply chain cost pressures.

Enphase Energy (NASDAQ: ENPH)

Enphase Energy is the market leader in solar microinverter technology, which converts energy from solar panels into usable electricity. Unlike traditional string inverters, Enphase's microinverters allow each solar panel to operate independently, improving performance in shaded or variable conditions. The company has also expanded into battery storage.

Enphase benefits from the increasing adoption of residential and commercial solar power and rising demand for smart energy management systems, though it's exposed to the health of the US residential solar market, which has faced headwinds from higher interest rates.

Sunrun (NASDAQ: RUN)

Sunrun is one of the largest residential solar companies in the United States, providing solar panel installations and leasing primarily for homeowners. Its business model allows customers to adopt solar energy with a small upfront cost, and it offers battery storage through its Brightbox system.

As the residential solar market grows, Sunrun maintains a dominant market position with recurring revenue from leasing agreements. However, it's highly sensitive to interest rates and changes to government incentives for home solar adoption, which makes it one of the more volatile names in the sector.

Orsted (CPH: ORSTED)

Orsted is a Denmark-based global leader in offshore wind energy. The company has transitioned from fossil fuels to fully renewable energy and is arguably the pioneer of offshore wind farm development, operating some of the largest offshore wind projects in Europe, Asia and North America.

Analysts have tended to view Orsted as the prime offshore wind stock due to its expertise, government-backed contracts and first-mover advantage. However, the offshore wind sector has faced significant challenges in recent years, including rising costs, supply chain issues and project write-downs, so it carries more risk than its pioneering status might suggest.

Bloom Energy (NYSE: BE)

Bloom Energy is a newer addition to watch, having surged dramatically over the past year on the back of its fast-growing fuel cell business. The company produces solid-oxide fuel cells that generate electricity on-site, and has benefited enormously from surging demand for reliable power to feed AI data centres, reporting a substantial multi-billion-dollar backlog including a major deal with Oracle.

Bloom is a higher-risk, higher-growth play than the established utilities on this list. Its exposure to the AI data centre power theme has made it one of the most talked-about names in the sector, but its valuation reflects high growth expectations, making it more suitable for investors with a higher risk appetite.

Siemens Energy (ETR: ENR)

Siemens Energy is a global energy technology company with a growing focus on renewable energy, particularly wind power. A significant portion of its business comes from Siemens Gamesa, its wind turbine division, which supplies both onshore and offshore wind farms. The company also develops energy transmission and storage solutions to support a greener electrical grid, and has benefited from strong demand for grid infrastructure.

Siemens Energy is a popular green energy stock due to its diversified energy portfolio and leadership in grid technology and wind power.

Green energy stocks summed up

• Green energy stocks are companies involved in environmentally friendly and sustainable energy production, storage and distribution
• It's widely viewed as a specific subset of renewable energy, with a particular focus on environmental credentials
• Investors are drawn to global decarbonisation efforts and, increasingly, to the surging power demand from AI data centres, though the US policy landscape has become more complicated
• Green energy is capital-intensive and subject to changing government policy, so it typically forms part of a diversified portfolio rather than the whole

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invest.

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