The world is rapidly shifting toward renewable energy to fight climate change and reduce dependence on fossil fuels. Governments, companies, and investors are focusing on solar, wind, and other clean energy sources. This global shift is creating great investment opportunities in renewable energy stocks. Over the next two years, many clean energy companies are expected to grow due to rising demand, technological advancement, and supportive government policies.
In this article, we will explore some of the top renewable energy stocks that experts and analysts believe could give strong returns by 2027.
1. NextEra Energy (NEE)
About the company: NextEra Energy is one of the largest clean energy companies in the United States. It operates both as a traditional utility and a renewable energy provider.
Why it’s promising:
- It has one of the biggest pipelines of solar and wind projects in North America.
- The company continues to invest heavily in clean energy infrastructure.
- Analysts believe its stable utility income and renewable expansion make it a safe long-term investment.
Risk factor: Rising interest rates and delays in new projects could affect its short-term performance.
2. First Solar (FSLR)
About the company: First Solar is a U.S.-based solar panel manufacturer known for its advanced thin-film technology.
Why it’s promising:
- It benefits from growing U.S. support for local solar manufacturing.
- Its solar panels are efficient and better suited for hot climates.
- First Solar has long-term contracts with large utility companies.
Risk factor: Global demand fluctuation and policy changes may impact production and pricing.
3. Enphase Energy (ENPH)
About the company: Enphase Energy designs microinverters and energy storage systems for residential solar setups.
Why it’s promising:
- It’s a leader in smart energy systems and home-based power storage.
- The global residential solar market is expected to expand sharply by 2027.
- The company is innovating in AI-driven power management.
Risk factor: Strong competition and changing solar installation demand could affect growth.
4. SolarEdge Technologies (SEDG)
About the company: SolarEdge provides inverters and power optimizers for solar panels, improving energy efficiency.
Why it’s promising:
- Its technology is widely used in both homes and large solar farms.
- Strong presence in Europe and North America.
- Analysts expect strong revenue growth due to increasing solar installations.
Risk factor: Price competition and dependence on component suppliers could affect margins.
5. Brookfield Renewable (BEP / BEPC)
About the company: Brookfield Renewable owns and operates a global portfolio of renewable energy assets including wind, hydro, and solar.
Why it’s promising:
- Offers steady dividends along with growth potential.
- Has a diversified asset base across multiple countries.
- Often favored by investors who prefer stable income with long-term appreciation.
Risk factor: Sensitive to interest rate changes that can impact dividend-based investments.
6. Iberdrola (IBE)
About the company: Iberdrola is a Spanish energy giant and one of the largest renewable energy producers in the world.
Why it’s promising:
- Expanding rapidly in Europe, Latin America, and the U.S.
- Heavy investment in offshore wind and green hydrogen projects.
- Strong government support for renewable expansion in Europe.
Risk factor: Currency exchange rates and political regulations can influence its profitability.
7. Vestas Wind Systems (VWS.CO)
About the company: Vestas is the world’s largest wind turbine manufacturer based in Denmark.
Why it’s promising:
- Leading supplier for global onshore and offshore wind projects.
- Huge order backlog ensures consistent revenue for coming years.
- Increased global investment in wind energy supports long-term growth.
Risk factor: Project delays, high raw material costs, and supply chain issues may impact margins.
8. Adani Green Energy (ADANIGREEN) (IN)
About the company: Adani Green Energy is one of India’s largest renewable energy companies with a growing portfolio in solar and wind projects.
Why it’s promising:
- India’s renewable energy demand is expected to rise sharply.
- Government policies favor clean energy development.
- Rapid expansion across multiple states and projects.
Risk factor: Market volatility and high debt levels can make it risky for short-term investors.
Renewable Energy ETFs – Safer Option
If you prefer less risk, you can invest in ETFs (Exchange-Traded Funds) that include multiple renewable stocks. Popular ones include:
- TAN (Invesco Solar ETF) – focuses on solar energy companies.
- ICLN (iShares Global Clean Energy ETF) – offers broad clean energy exposure.
ETFs help balance the risk between multiple companies while still benefiting from sector growth.
Things to Monitor Before Investing
- Government policies on clean energy and tax credits.
- Interest rate changes that affect renewable project financing.
- Quarterly earnings and project backlogs.
- Technological advancements in solar, wind, and energy storage.
- Global demand trends for renewable installations.
Conclusion
The renewable energy industry is expected to grow rapidly in the next few years, driven by rising global energy needs, sustainability goals, and innovation. Stocks like NextEra Energy, First Solar, Enphase, and Brookfield Renewable stand out for their long-term potential. However, investors should always analyze risk factors and diversify their investments for stable returns.
Renewable energy is not just an investment trend — it’s the future of power generation. Those who invest wisely today may enjoy strong growth and help support a cleaner planet tomorrow.
Citations
- Morningstar Clean Energy Reports, 2025
- Reuters Renewable Energy Market Outlook, 2025
- Goldman Sachs Global Solar & Wind Forecast, 2025
- InvestorPlace and Nasdaq Green Energy Stock Updates, 2025
Disclaimer: This article is for educational and informational purposes only. It does not constitute financial or investment advice. Stock markets are subject to risks, and past performance does not guarantee future returns. Always do your own research or consult a certified financial advisor before making investment decisions.