10 Best Green Energy Penny Stocks to Buy Now
In this article, we discuss the 10 best green energy penny stocks to buy now. To skip the detailed analysis of the renewable energy industry, go directly to the 5 Best Green Energy Penny Stocks to Buy Now.
Renewable sources are on the fast track to making their mark in the energy industry and taking over the fossil fuel industry. According to the International Energy Agency (IEA), the global energy sector investments are expected to be around $2.8 trillion. Renewable energy is expected to take up $1.7 trillion out of these investments. Between 2021 and 2023, green energy investments were expected to rise by 24% compared to 15% for fossil fuels.
For Europe, The Russia-Ukraine war and the energy crisis in the continent have pushed it toward a faster adoption of renewable energy. The European Union reached a provisional deal with plans to increase the percentage of renewable energy in its total energy mix. By 2030, clean energy is expected to account for 42.5% of Europe's total energy mix, up from the current 32%.
The IEA predicts a 2400 GW growth in renewables between 2022 and 2027, marking an 85% acceleration compared to the previous five years. Green energy is expected to produce over 90% of global electricity capacity by 2027. Most of the growth will be accounted for by China. In the last three years, the number of energy storage companies in the country has more than doubled to 109,000. In the renewable energy mix, solar takes the lead and will likely grow by almost 1500 gigawatts (GW) between 2022 and 2027 to become the biggest source of energy by the end of the forecasted period.
Green Energy Industry in the US
The US renewable energy industry has picked up a significant pace in the last few years. In the last three years, renewable energy stocks such as Enphase Energy, Inc. (NASDAQ:ENPH) and First Solar, Inc. (NASDAQ:FSLR) have grown by nearly 250% and over 280%, respectively. In 2023, the country’s new energy generation installations are expected to be 80% renewables. Solar energy accounts for 40% of the all-new generating capacity in the US and is expected to be 54% in 2023.
The Inflation Reduction Act was signed on August 16, 2022, by the Biden Administration. The act directs $400 billion to renewable energy in the form of funding and tax credits. The act benefits several clean energy stocks including NextEra Energy, Inc. (NYSE:NEE), First Solar, Inc. (NASDAQ:FSLR), and Brookfield Renewable Partners L.P. (NYSE:BEP). The United States government has also provided subsidies on electric vehicles which benefit companies such as Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F). Electric vehicles are expected to account for 40% of the new car sales by 2030.
Renewable energy is still a growing business and is a long way from maturity. This leaves ample space for small companies to capture a portion of the clean energy industry. For investors, clean energy penny stocks hold the potential to become significant long-term investments. Some of the best renewable energy penny stocks include Heliogen, Inc. (NYSE:HLGN), Gevo, Inc. (NASDAQ:GEVO), and ESS Tech, Inc. (NYSE:GWH).
Photo by Jason Blackeye on Unsplash
Our Methodology
For this article, we first used a stock screener to identify clean energy stocks under $5 as of June 30. Among all these renewable energy penny stocks, we chose the ones with the highest number of hedge fund investors.
Best Green Energy Penny Stocks to Buy Now
10. Advent Technologies Holdings, Inc. (NASDAQ:ADN)
Number of hedge fund holders: 5
Advent Technologies Holdings, Inc. (NASDAQ:ADN) is a clean energy company that develops fuel cells and hydrogen technology in North America, Europe, and Asia. It is headquartered in Boston, Massachusetts.
Advent Technologies Holdings, Inc. (NASDAQ:ADN) has stayed quite active this year. In February, the company announced its collaboration with Siemens Energy for the development of 50kW–500kW maritime fuel cell solutions for super yachts. At the beginning of March, the company announced the opening of its new R&D and manufacturing facility at Hood Park in Boston. On March 22, Advent Technologies Holdings, Inc. (NASDAQ:ADN) entered into a Joint Development Agreement with Hyundai Motor Company for the development of High-Temperature Proton Exchange Membrane (HT-PEM) fuel cell technology development.
On May 11, Advent Technologies Holdings, Inc. (NASDAQ:ADN) secured a $1.1 million contract, according to which it will provide HT-PEM membrane electrode assemblies for truck applications in Asia.
Heliogen, Inc. (NYSE:HLGN), Gevo, Inc. (NASDAQ:GEVO), and ESS Tech, Inc. (NYSE:GWH) are some of the best clean energy penny stocks along with Advent Technologies Holdings, Inc. (NASDAQ:ADN).
9. Capstone Green Energy Corporation (NASDAQ:CGRN)
Number of hedge fund holders: 5
Capstone Green Energy Corporation (NASDAQ:CGRN) is a California-based company that manufactures microturbine technology solutions. The company’s microturbines and products for cogeneration of combined heat and power, combined cooling, renewable energy, and critical power supply.
Capstone Green Energy Corporation (NASDAQ:CGRN) received several contracts in the first half of 2023. On June 15, the company secured an order for ten Capstone C65 microturbines to be deployed in Marcellus Shale Play in Appalachia. On June 12, the company received a follow-on order for two Capstone 200kW Signature Series microturbines. In May, the company received an order for a C1000 Signature Series microturbine for an industrial dairy plant. Capstone Green Energy Corporation (NASDAQ:CGRN) also received several orders from Germany, Belgium, Denmark, and the Netherlands in May for microturbines to be used across different sectors.
In the first quarter of 2022, 5 hedge funds had a stake in Capstone Green Energy Corporation (NASDAQ:CGRN) compared to 3 in the previous quarter. In Q1, the company’s biggest hedge fund holder, AIGH Investment Partners owned 613,903 shares of the company worth $816,491.
8. Azure Power Global Limited (NYSE:AZRE)
Number of hedge fund holders: 6
Azure Power Global Limited (NYSE:AZRE) is a renewable energy company headquartered in India. The company’s operations include solar, wind, and hybrid projects.
Broad Peak Investment Holdings was the most prominent hedge fund holder of Azure Power Global Limited (NYSE:AZRE) in the first quarter with 415,000 shares worth over $1 million. Point72 Asset Management was the second largest stakeholder of the company and increased its stake in the company for the third quarter in a row. The firm increased its stake in Azure Power Global Limited (NYSE:AZRE) by 21% in Q1 to 351,682 shares worth $875,688.
Azure Power Global Limited (NYSE:AZRE)’s latest deals include its collaboration with First Solar, Inc. (NASDAQ:FSLR) for 600 megawatts of high-performance, advanced thin-film photovoltaic solar modules. The new manufacturing plant is expected to be commissioned in the second half of 2023.
7. Emeren Group Ltd (NYSE:SOL)
Number of hedge fund holders: 6
Emeren Group Ltd (NYSE:SOL) develops, operates, and sells solar power projects. The company manages a pipeline of 3 gigawatts of power. Emeren Group Ltd (NYSE:SOL) operates in over 10 countries and is headquartered in Stamford, Connecticut. It is one of the best clean energy penny stocks according to hedge funds.
Emeren Group Ltd (NYSE:SOL) is one of the stocks that Raymond James analyst Pavel Molchanov suggests investors “load up” on. Molchanov said:
“Among U.S.-listed solars, Emeren stands out for its substantial European footprint – comprising 69% of the mid/late-stage project pipeline as of 1Q23 – making it one of the most direct ways for investors to get exposure to Europe’s high-visibility solar buildout, bolstered by climate policy and the urgency of energy security.”
The analyst has a Strong Buy rating on Emeren Group Ltd (NYSE:SOL) and a $9 price target.
On June 27, Emeren Group Ltd (NYSE:SOL) announced its collaboration with Matrix Renewables to carry out a proprietary Development Services Agreement which will require the company to develop 1.5 GW of Battery Energy Storage Systems in Italy.
6. Ballard Power Systems Inc. (NASDAQ:BLDP)
Number of hedge fund holders: 7
Ballard Power Systems Inc. (NASDAQ:BLDP) develops and manufactures polymer-electrolyte membrane (PEM) fuel cell products. The company’s fuel cells help produce clean energy mostly in commercial vehicles such as buses, trains, trucks, and forklift machinery along with other things. Ballard Power Systems Inc. (NASDAQ:BLDP) was founded in 1979 and is headquartered in British Columbia, Canada.
On June 13, Ballard Power Systems Inc. (NASDAQ:BLDP) announced that it is planning to increase its proprietary graphite bipolar plates’ production and reduce its costs by approximately 70% by 2025. Graphite bipolar plates are the second most expensive piece in a fuel cell stack. Their cost reduction can increase Ballard Power Systems Inc. (NASDAQ:BLDP) gross profit margins significantly. To increase the plates’ production the company plans to invest $18 million through 2025.
Among the hedge funds tracked by Insider Monkey, 7 hedge funds had a stake in Ballard Power Systems Inc. (NASDAQ:BLDP) in the first quarter of 2023. Their combined stake value was $23.067 million. In the previous quarter, 5 hedge funds had a stake worth $14.151 million in the company. Ken Griffin’s Citadel Investment Group increased its holdings in Ballard Power Systems Inc. (NASDAQ:BLDP) by 182% in Q1 to over 3.5 million shares worth $19.584 million and held the most prominent stake in the company.
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Disclosure. None. 10 Best Green Energy Penny Stocks to Buy Now is originally published on Insider Monkey.
