Investing in renewable energy stocks is becoming more complex as companies compete by introducing innovative products and navigating changing government regulations.
With global warming and environmental organizations urging countries to shift away from oil to toward renewable energy sources this makes it more interesting for us to look into potential companies that could generate good profit.
According to the IEA report, renewable energy is projected to account for 37% of electricity generation by 2026, up from 30% in 2023.Such reports help forecast long-term growth, enabling us to make informed investment choices.
This article showcases companies with growth plans, research projects, and special qualities that make them stand out.
What are the best renewable energy stocks in 2024?
Windar Photonics(WPHO)
Windar Photonics offers LiDAR devices that enhance the efficiency of wind turbines. One of the key benefits of their product is its compatibility with different types of wind turbines. Additionally, the devices are designed to endure various weather conditions, making them accessible to customers worldwide.
Key points in Windar Photonics
- Enhanced LiDAR technology to make the device more affordable.
- With significant investment in research and development and a large backlog of orders, there is strong potential for growth.
- In 2023, the company experienced a net increase of 260% compared to 2022.
- Aiming to expand in China, leveraging the backlog of orders from 2023.
Vestas(VWSBX)
Vestas Wind Systems is a global leader in the wind turbine sector, founded in Denmark 1945 the company’s experience in wind energy has proved to be a key element for its strong market coverage.
A review of Vestas’s Q1 2024 financial report shows a service order backlog increase worth EUR 34.4 billion. Although there was a 30% drop in order intake, this decline is primarily attributed to the high order intake in 2023 in the United States during Q1
A key highlight from the income statement is the 30% increase in gross profit.
Key points of Vestas
- Unique recycling method that doesn’t require replacement of the blade materials.
- Vestas in-addition to producing wind turbine it also services to any turbine brands:
- Maintenance.
- Parts & Repair.
- Fleet Optimisation.
Ocean Sun
Ocean Sun is a renewable energy company specializing in floating solar power technology. Floating solar power plants are great for countries that lack enough wind for wind turbines or land space. Countries such as Indonesia have invested alot into floating solar panels.
Ocean Sun unique patented design, low cost and easy to install separates its from other competitors.
Key points in Ocean Sun
- New projects in Greece,India and Spain.
- Patented technology with a growth opportunity due to its low cost and high power generation.
- Company cash reserve can support the company without the need of any investment.
Enphase(ENPH)
Enphase is best known for its microinverters, which convert solar energy from individual panels into usable electricity. Compared to string inverters they are much easier to install and offer DC to AC conversion back of the panel. Speaking of growth, Enphase and Octopus Energy have become partners to expand the utilisation of Microinverters in the UK, with Octopus Energy being the largest electricity provider this offers a great growth opportunity for Enphase in the renewable energy stocks market.
Key points of Enphase
- Partnership with Octopus energy can offer a huge growth in the company.
- Debt remained overall the same from the period 2022 to December 2023 ($1.3B)
- Growth in the European sector is on the rise around 70%.
Ormat(ORA)
Ormat produces renewable energy from Geothermal Power, Waste Heat REG and Energy storage. Three resources that the demand is continuously growing. A key source is Geothermal. Geothermal thermal energy is about withdrawing the heat from deep beneath the surface of the earth to produce electricity.
2023 earning presentation slides
Key points of Ormat
- Growth plan for the next few years.
- A leading company in geothermal energy.
- Has projects across the multiple countries (majority of the projects are in the states, one thing to look after is whether they would expand into Middle East)
First Solar(FSLR)
First Solar is known for its thin film PV solar solutions. Being able to produce thin film PV modules at a much more cheaper cost keeps its position the first in the field.
While the solar industry is becoming more challenge and difficult to be profitable First Solar stock has been doing great over-all. The year 2024 looks to be a year that the company can grow the value of its stock and one of the main reason is backlog order of 2023 value of $23.3 billion.
Though the backlog order sounds good there are areas of risks as-well. For example; companies that are based abroad if they change their strategy such as offering volume discounts can impact First Solar. There are more risks factors associated to First Solar however these can be applied to every company. You can find more and how the company is planning to tackle these risks in the 2023 annual report..
Key points of First Solar:
- unique product thin film PV product cost is low and offers great energy production.
- Contracts with India and goal to expand in different countries plays an important role in this competitive market.
please note: Renewable energy stock investment requires knowledge of the company, understanding growth plan of the company and various other factors. The stocks included in this article are based upon the Financial report and independent research.