Renewable energy stocks

Guide to investing in renewable energy stocks and green ETFs

Renewable energy is reshaping global markets. This guide explores how to invest in green energy stocks, from solar and wind companies to diversified ETFs.

πŸ‘‰ Trade renewable energies β‡’
61% of retail CFD accounts lose money - You never lose more than the amount invested in each position
↓ iShares Global Clean Energy ↓
61% of retail CFD accounts lose money - You never lose more than the amount invested in each position
Renewable energy companies

Listed renewable energy companies include those specialising in solar power (Enphase, First Solar, Canadian Solar), wind power (Vestas, Siemens Gamesa, Ørsted) and hydroelectricity (Brookfield Renewable). In Europe, groups such as Iberdrola, Neoen and EDF Renouvelables also play a major role. These companies reflect the diversity of the global energy sector. Their presence on the stock market gives investors access to different segments of green energy, with varied financial and geographical profiles.

Yes, there are ETFs (Exchange Traded Funds) specialising in renewable energy. They bring together several companies in the sector in a single listed product. The iShares Global Clean Energy is one of the best known, offering diversified exposure to companies active in solar, wind and other green technologies. ETFs have the advantage of limiting dependence on a single company. Like any financial product, they remain subject to market fluctuations.

Investing in renewable energy carries specific risks. The sector is dependent on public policy and subsidies, which can affect the profitability of certain companies. The costs of raw materials (copper, lithium, steel) directly influence their performance. Global competition, particularly between European, American and Asian players, also puts pressure on prices. Finally, like any listed stock, renewable energy stocks remain subject to the general volatility of the financial markets.

There are two main ways to access the solar and wind energy sector on the stock market: by directly purchasing shares in specialised companies (e.g. Enphase, First Solar, Vestas, Siemens Gamesa) or by investing in ETFs that include several companies. This approach provides diversified exposure to renewable energies. Each method has its advantages and limitations: precise targeting with individual shares, immediate diversification with ETFs. This information is general in nature and does not constitute investment advice.

Renewable energy plays a central role in the global transition away from fossil fuels. On the stock market, investors can now access a growing number of companies in solar, wind, hydro and marine energy, as well as green-themed ETFs. This sector reflects long-term structural changes driven by climate policies, innovation and demand for clean power. However, investing in renewable energy stocks also involves risks, such as volatility and reliance on government subsidies. This article provides general information on opportunities, listed companies and strategies in the renewable energy sector, without constituting investment advice.

πŸ“Œ The essentials of renewable energy on the stock market

  • 🌍 Renewable energy is a fast-growing sector supported by global climate policies.
  • πŸ“ˆ Listed companies include solar, wind, hydro and marine energy firms.
  • πŸ’Ή Access possible via individual stocks or diversified green ETFs.
  • ⚠️ Risks: market volatility, policy dependence, strong competition.
  • ℹ️ Information provided is general and does not constitute investment advice.

πŸ‘‰ Trade renewable energies β‡’
61% of retail CFD accounts lose money - You never lose more than the amount invested in each position

Why invest in renewable energy?

Renewable energy is attracting increasing attention from investors. Its growth on the stock market reflects both a global trend and major economic challenges.

 

Energy transition and global growth

Renewable energies occupy a strategic place in the energy transition. The carbon neutrality targets set by the European Union and international agreements such as the COP aim to reduce dependence on fossil fuels. This dynamic is promoting the development of green infrastructure, with massive investments in wind, solar, hydroelectric and tidal technologies.

πŸ‘‰ Public policies, subsidies and growing demand for clean energy are helping to make renewable energy a key sector on the stock market.

  • 🌍 Carbon neutrality by 2050: a global roadmap.
  • πŸ“‘ Government support and regulatory frameworks.
  • 🏭 Gradual reduction in the use of fossil fuels.

 

Growing demand for clean energy

Demand for renewable energy is growing every year. Both consumers and businesses are looking for less polluting solutions, leading to a boom in solar photovoltaics, onshore and offshore wind power, and storage batteries.

πŸ“ˆ According to several studies, global green energy capacity could double by 2030. On the stock market, this trend is reflected in the listing of more and more specialised companies, offering investors direct access to this sector.

  • β˜€οΈ Rapid deployment of solar photovoltaics.
  • 🌬 Growth of onshore and offshore wind power.
  • πŸ”‹ Development of batteries and energy storage.
  • πŸ’§ Rise of hydroelectricity and marine technologies.

 

Historical example: tidal energy

Certain projects illustrate the desire to innovate in renewable energy. The Cape Sharp Tidal project, developed in Canada, aimed to harness tidal energy to produce green electricity. Although experimental, it marked a milestone in the search for marine solutions and helped to raise the profile of hydroelectricity and tidal technologies in the energy debate.

πŸ‘‰ These initiatives show that the sector is not limited to solar and wind power, but also extends to emerging solutions.

  • 🌊 Tidal energy projects.
  • ⚑ Technological innovations in storage.
  • πŸ”Ž Diversification of green energy sources.

 

A sustainable and responsible investment

Renewable energies are associated with the concept of sustainable investment (ESG). This type of investment attracts investors who are sensitive to environmental and social issues. On the stock market, this can take the form of individual shares or thematic ETFs grouping together several specialised companies.

⚠️ However, it is important to remember that all investments involve risks: dependence on public policy, financial market volatility, and increased competition.

  • βœ… Diversification possible with shares or ETFs.
  • ♻️ Alignment with ESG criteria.
  • ⚠️ Risks: volatility and regulation.

πŸ‘‰ In summary, renewable energy is a rapidly expanding sector, supported by global policies and growing demand. Its growing presence on the stock market reflects the importance of the sector, although no guarantee of future performance can be given.

πŸ‘‰ Trade renewable energies β‡’
61% of retail CFD accounts lose money - You never lose more than the amount invested in each position

Renewable energy companies listed on the stock market

Many companies specialising in green energy are now listed on the world's major financial markets. They reflect the boom in solar, wind, hydroelectric and marine technologies. These examples are not intended as recommendations, but to illustrate the diversity of the renewable energy sector on the stock market.

 

Shares in solar companies on the stock market

Solar photovoltaics is one of the most dynamic branches of the sector. Several international companies specialising in the manufacture of panels and storage solutions are accessible to investors via the stock markets.

  • β˜€οΈ Enphase Energy: a major player in micro-inverters and residential solar systems.
  • 🌍 First Solar: American company producing thin-film photovoltaic modules.
  • πŸ‡¨πŸ‡¦ Canadian Solar: manufacturer present in more than 150 countries.

πŸ‘‰ These companies symbolise the growth of the solar sector, fuelled by global demand for renewable energy.

 

Listed wind energy companies

Onshore and offshore wind energy plays a central role in global renewable electricity production. Several European companies dominate this market and are listed on the stock market.

  • 🌬 Vestas Wind Systems (Denmark): world leader in wind turbines.
  • ⚑ Siemens Gamesa Renewable Energy (Spain): major player in offshore and onshore wind power.
  • πŸ‡©πŸ‡° Ørsted: Danish pioneer in offshore wind power, renowned for its large-scale projects.

πŸ‘‰ Wind power is attracting particular attention thanks to its development prospects, particularly in Northern Europe and Asia.

 

Hydroelectric and marine energy companies

Hydroelectricity remains the world's leading source of renewable energy. New tidal and hydro turbine technologies are complementing this sector. Some companies are listed and provide indirect exposure to these innovations.

  • πŸ’§ Brookfield Renewable Partners: a global player in hydroelectricity and renewable energy production.
  • 🌊 Tidal power projects: initiatives such as Cape Sharp Tidal in Canada have highlighted tidal energy, although many projects remain at the experimental stage.
  • πŸ”‹ Diversified companies: some companies combine hydroelectricity, solar power and storage to broaden their portfolio.

πŸ‘‰ Hydroelectricity illustrates the stability of a mature technology, while marine energy demonstrates innovation and future prospects.

 

British and European renewable energy companies

The UK is home to several listed renewable energy companies that play a key role in the energy transition. These groups are particularly active in wind and solar projects and are well established on the London Stock Exchange.

  • πŸ‡¬πŸ‡§ SSE plc: a leading British utility, strongly involved in offshore wind development.
  • πŸ‡¬πŸ‡§ Greencoat UK Wind: an investment trust dedicated to wind energy projects across the UK.
  • πŸ‡¬πŸ‡§ Octopus Renewables Infrastructure Trust: focused on solar and wind assets in the UK and continental Europe.
  • πŸ‡¬πŸ‡§ Harmony Energy Income Trust: invests in large-scale battery storage to support renewable integration.

πŸ‘‰ These companies highlight the UK’s important contribution to the growth of renewable energy in Europe and globally.

πŸ”Ž Key takeaways

Renewable energy companies listed on the stock market cover a wide range of technologies: solar, wind, hydro and marine energy. Their growing presence reflects the changes taking place in the global energy sector. This information is provided for general information purposes only and does not constitute investment advice.

πŸ‘‰ Trade renewable energies β‡’
61% of retail CFD accounts lose money - You never lose more than the amount invested in each position

How to invest in renewable energy shares?

There are several ways to invest in renewable energy, depending on your objectives and the level of diversification you are looking for. This sector is accessible on the stock market through various financial instruments.

 

πŸ“Š Individual shares of renewable energy companies on the stock market

Buying shares directly allows you to invest in a specific company (solar, wind, hydro, etc.).

  • βœ… Direct access to listed companies (e.g. Enphase, Vestas, Neoen).
  • πŸ’» Platforms such as eToro offer the purchase of shares in renewable energy companies.
  • ⚠️ Analysis of each company's financial health and specific risks is necessary.

 

πŸ“ˆ Specialised green energy ETFs

ETFs (Exchange Traded Funds) bring together several companies in the sector, offering immediate diversification.

  • 🌍 Example: iShares Global Clean Energy, composed of solar, wind and hydroelectric companies.
  • 🧩 eToro provides access to this ETF as well as thematic portfolios related to the energy transition.
  • ⚠️ Like any listed product, ETFs follow the fluctuations of the financial markets.

 

πŸ”Ž Quick comparison

  • πŸ‘€ Individual shares: target a specific company, but require more monitoring.
  • πŸ—‚ Renewable energy ETFs: provide a broad view of the sector, with less dependence on a single company.

πŸ‘‰ This information is provided for general information purposes only. It is intended to present the various ways of accessing renewable energy companies on the stock market and does not constitute investment advice.

πŸ‘‰ Trade renewable energies β‡’
61% of retail CFD accounts lose money - You never lose more than the amount invested in each position

The advantages and risks of investing in renewable energy

Renewable energy is attracting increasing attention in the financial markets. Like any investment, this sector has both advantages and limitations.

βœ… Advantages of investing in renewable energy

  • 🌍 Sector of the future: green energy is part of the energy transition and benefits from global climate policies.
  • πŸ“ˆ Long-term growth: demand for solar, wind and storage is continuously increasing.
  • πŸ› Public support: subsidies, stimulus packages and tax incentives support development.
  • ♻️ Sustainable investment (ESG): in line with environmental and social criteria.

 

⚠️ Investing in renewable energy companies: what are the risks?

  • πŸ“‰ Stock market volatility: green stocks can be subject to significant fluctuations.
  • πŸ’° Dependence on subsidies: the profitability of some companies relies on public support.
  • πŸ”„ Commodity cycles: the cost of copper, lithium or steel directly influences the sector.
  • 🏭 Global competition: strong price pressure between American, European and Asian players.

πŸ‘‰ These factors show that investing in renewable energy combines opportunities and constraints. The information presented here is general in nature and does not constitute an investment recommendation.

 

How to choose the best green companies on the stock market?

Many renewable energy companies are listed, but not all have the same profile. Before making any decisions, certain analysis criteria can be used to assess a company's strengths and limitations.

  • πŸ’Ή Financial analysis: examine market capitalisation, profitability and debt to understand economic strength.
  • 🌍 Geographical diversification: a company with a presence on several continents is often better equipped to deal with local uncertainties.
  • ⚑ Technological diversification: combining solar, wind and hydroelectricity can reduce dependence on a single source.
  • πŸ› Regulatory burden: heavily subsidised companies remain vulnerable to political changes.
  • ♻️ ESG strategy: more and more investors are incorporating environmental and social criteria into their selection process.

πŸ‘‰ The choice of green stocks on the stock market is therefore based on a balanced analysis of financial data, geographical exposure and the regulatory context.

πŸ‘‰ Trade renewable energies β‡’
61% of retail CFD accounts lose money - You never lose more than the amount invested in each position

Outlook for the renewable energy sector

The renewable energy sector is constantly evolving. Technological innovations, growing demand and environmental policies are redefining its medium- and long-term outlook.

  • β˜€οΈ Solar and storage: falling costs of photovoltaic panels, combined with advances in batteries and hydrogen, are paving the way for mass deployment.
  • πŸ’§ Hydroelectricity and tidal energy: projects such as Cape Sharp Tidal in Canada have demonstrated the potential of tidal energy. Although some programmes are still experimental, they demonstrate the diversity of the sector.
  • ♻️ ESG integration in global finance: green funds and ETFs are multiplying, strengthening the place of renewable energy in institutional portfolios.
  • πŸ› Public policy: the EU and other major economies' goal of carbon neutrality by 2050 will continue to fuel the market.

πŸ‘‰ The renewable energy sector remains a major focus of the energy transition. However, like any market, its evolution will depend on innovation, economic conditions and political choices.

πŸ‘‰ Trade renewable energies β‡’

eToro is a multi-asset platform that offers both investing in stocks and cryptocurrencies, as well as trading assets in the form of CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

You will never lose more than the amount invested in each position.

This communication is for informational and educational purposes only and should not be considered investment advice or a recommendation. Past performance is not an indication of future results.

Copy Trading is not equivalent to investment advice. The value of your investments may go up or down. Your capital is at risk.

Investing in and holding cryptoassets is offered by eToro (Europe) Ltd as a digital asset service provider registered with the AMF. Investments in cryptoassets are highly volatile. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.