Best Renewable Energy Stocks in 2021

The decarbonization of the global economy is in full swing. Championed by the world’s largest energy-producing countries, most nations have pledged their commitment to the Paris Climate Agreement. Many energy companies in the UK have also followed suit. While some direct electricity generators buy from only renewable energy sources, others heavily invest in renewable energy development. By doing this, they kill two birds with a single stone. First: a pro-earth status polishes their brand. Second: they cart in profit due to falling prices in the generation of renewable energy. 

There is a lot of money to be made in the switching of energy sources. Analysts estimate that it will take an investment of about $100 trillion in the next three decades to fund this transition. Some energy companies have clasped their tentacles around the opportunity. 

Ready to invest in stocks? Let us look at five of the best renewable energy stocks to buy in 2021

 1. Brookfield Renewable

This is one of the world’s leading producers of renewable energy. Although they specialize in hydroelectric power, they also generate solar and wind power. They have steadily enjoyed an annual return of 20% since the company’s creation. The projections indicate that this will remain consistent up until 2025.

 2. NextEra Energy

When it comes to wind and solar energy production, NextEra is the biggest in the world. Like some of the others on this list, they sell power purchasing agreements (PPAs) to electric utilities and end-users. Through the last decade, NextEra has enjoyed a total return of 700%. Because of its consistent dividend growth, NextEra has earned the Dividend Aristocrat distinction.

Projected Annual Return: 6% to 8%, through 2023

Projected Dividend Growth: 10%, through 2022

 3. Clearway Energy

Unlike Brookfield, they have a more diversified portfolio. While Brookfield solely focuses on renewable energy generation, Clearway has interests in natural gas. They enjoy an annual return of 10% profits. With Global Infrastructure Partners at the helm of their affairs, the company will grow even bigger. 

Projected Annual Return: Steady 

Projected Dividend Growth: 5-8%

4. First Solar

First Solar specializes in the manufacture of thin-film solar panels. The large size of thin-film solar panels makes them superior to conventional panels because it generates more electricity. First Solar enjoys an annual return of 9.5% 

With the increase in demand and improved efficiency of solar panels, the company will continue to thrive. With $1.5 billion in net cash as of 2021, they have one of the most solid accounts in the sector.

 5. SolarEdge

While First Solar focuses on panels, SolarEdge specializes in inverters. The coolest thing about SolarEdge is the returns it has realized over the years. Since its inception, SolarEdge has enjoyed 50% annual returns and has become the world’s largest supplier of inverters. Like First Solar, they boast a robust account. As of 2021, they had net cash of $500 million. 

Conclusion 

Renewable energy is a big deal now. It can only get better. The demand for solar energy, for instance, is expected to grow from 11% of the world’s power capacity to 38% by 2050. Given how solid the accounts of the above-listed companies are, buying their stocks is undoubtedly a wise decision.