These are the best clean energy stocks to buy now before the Inflation Reduction Act is approved. Stocks such as Tesla stock, TSLA stock, STEM stock, ALB stock, Albemarle stock, Next Era Energy stock, NEE stock, CHPT stock, Chargepoint stock, PBW ETF holdings, PLUG stock, Plug power stock, and more!
Undeniably, the renewable energy sector has vast potential, and it's expected to keep growing. Overall, solar and wind power generation have expanded more rapidly than natural gas-fired generation in the U.S. The use of coal continues to decline, and nuclear energy development has stayed fairly even.
Many energy stocks offer attractive yields and therefore appeal to investors who like high-dividend stocks. Energy stocks provide investors with a way to play rising oil prices. Energy stocks can help hedge against inflation as oil and gas prices typically rise during inflationary periods.
Energy stocks have outperformed the broader market to start the year, kicking off 2025 with gains as oil and natural gas prices have edged higher. The S&P 500 Energy Sector (XLE) is up 2.8% year to date versus the broader index's (^GSPC) 0.6% rise.
Warren Buffett has been a vocal backer of one U.S. energy stock, and despite the sector's underperformance this year, he's been buying more. Energy stocks have been the worst-performing sector so far in 2024, up just 7% compared to the roughly 20% return in the S&P 500.
If you operate a small-scale energy generator you may be able to make money by selling green energy certificates to energy suppliers. You can save money by using the certificates to get exemptions from some environmental taxes, such as the climate change levy.
The United States' budget for clean energy investments exceeds $559 billion – more than any other nation.
Solar panels have many environmental benefits and can save homeowners money over the long term. While costs have decreased over the past years, installing and maintaining solar panels can still be expensive.
By adopting clean and renewable energy sources such as solar, wind, and hydropower, we can significantly reduce our carbon footprint and mitigate the effects of climate change. Investing in renewable energy stocks in India, particularly the best green energy stocks in India, can be better for our environment.
Sell the Excess Energy to the Grid
The financial benefit in this case comes from the customer's energy supplier buying the surplus energy off them. The amount sold on in this way depends upon how much is generated, but not used in the owner's house.
The buyer can be a big international corporation, like Google, which has a large portfolio of Green PPAs in many countries spanning numerous generators. Or the seller may be a large energy company with an international renewable portfolio that is selling Green PPAs to small and medium-sized businesses.
In January 2018, Gates invested in Mainspring Energy's $83.3 million Series C, according to PitchBook, which led the company to a $208.3 million valuation. Mainspring's linear generator uses chemical energy to convert motion along a linear line into clean electricity at any scale, according to the company.
Top Warren Buffett Stocks
Bank of America (BAC), 766.3 million. Coca-Cola (KO), 400 million. Kraft Heinz (KHC), 325.6 million. Apple (AAPL), 300 million.
However, it's important to recognize that energy stocks can experience significant fluctuations in value. For example, S&P 500 Energy sector gained nearly 55% in 2021 and nearly 66% in 2022 before experiencing a narrowly negative return in 2023 and a modest 5.7% gain in 2024.
Exxon and Chevron are great options if you want broad industry exposure. Enterprise and Enbridge are sound choices for dividend investors who want to cherry-pick reliable high-yield options. Reuben Gregg Brewer has positions in Enbridge. The Motley Fool has positions in and recommends Chevron and Enbridge.
William Blair analysts call Vernova stock "a "top pick" for 2025, as artificial intelligence (AI) data centers consume vast amounts of energy. Wall Street expects Vernova earnings to boom 174% per share in the year ahead on 5% sales growth. GE Vernova stock flourishes a Composite Rating of 92 and RS Rating of 98.