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5 Solid Renewable Energy Stocks to Watch for Growth Now

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The transition from coal and nuclear energy production to renewable energy began last year, with demand for solar as well as wind power plants on the rise.  This is primarily because solar and wind power plants produce electricity at a much lower cost compared to traditional energy sources.

Technological advancements, by the way, are also driving demand for renewable energy. For instance, battery storage is helping in controlling energy supply to the grind. Technology is also making solar panels more efficient and even improvements in components like inverters are helping in generating more energy for various projects.

But it’s also true that corporate America has now shown keen interest in renewable energy and it is playing a significant role in boosting demand for such alternative energy. This is because corporate America now wants to associate with the green revolution.

In fact, as part of their economic, social, and corporate responsibilities, many non-traditional energy companies are now investing in renewable energy to add to their environmental accountability. Notable among them are some oil behemoths that are looking to investing in green technology for sustainable growth.

What’s more, the government’s policy is certainly acting as a tailwind for companies willing to invest in the production of alternative energy. After all, the federal government does provide a 30% investment tax credit (ITC) to companies that depend on solar energy and not fossil fuels.

Thus, from new types of energy storage to declining cost to making the environment greener, the need for renewable energy is set to explode this year. To put things into perspective, the US Energy Information Administration (EIA) had said that solar and wind energy will be used more often in the United States to generate electricity in 2021.

Per the EIA, as quoted in an oilprice.com article, nearly 39.7 GW of new electricity generating capacity is projected to begin commercial operation this year, with solar photovoltaics (PV) accounting for 39% of the new capacity. Wind power, in the meanwhile, will account for 31% of the new capacity whereas natural gas will only account for 16% of the new generation.

As mentioned in the article, the EIA further stated that solar capacity growth will surpass wind growth for the first time this year. But let’s admit that not only solar and wind installations will continue to boom this year in the United States, its demand will also rise worldwide. As a matter of fact, IHS Markit projected solar installations across the world to climb more than 30% this year and China will account for the bulk of the installations, the article further stated.

5 Renewable Energy Stocks Worth a Look Now

Growth among renewable energy stocks is inevitable this year, thanks to low costs, tax subsidies and companies’ initiatives to go green. Thus, keeping an eye on promising renewable energy stocks this year won’t be a bad proposition. Here’re the stocks –

SolarEdge Technologies, Inc. (SEDG - Free Report) provides inverter solution. The company’s SolarEdge system offers power optimizers, inverters and a cloud-based monitoring platform. The company currently has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings has risen 4.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 14.8%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Array Technologies, Inc. (ARRY - Free Report) is a manufacturers of ground-mounting systems used in solar energy projects. The company currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has moved up 4.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 5.8%.

Renesola Ltd. (SOL - Free Report) manufactures and sells solar wafers and related products. Initially, the company also sold solar modules. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has climbed more than 100% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%.

SunPower Corporation (SPWR - Free Report) designs, develops, manufactures, markets and sells high-performance solar electric power technology products, systems and services worldwide. The company currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its current-year earnings has moved 44.8% up over the past 90 days. The company’s expected earnings growth rate for the current year is more than 100%.

NextEra Energy, Inc. (NEE - Free Report) is one of the world’s largest producers of solar and wind energy. The company is committed to invest in cleaner energy sources than dirty fossil fuels. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has risen 0.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 9.1%.

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