Top 6 Renewable Energy Stocks

As the clean energy sector continues to drive innovation and reshape global industries, renewable energy is increasingly seen as a compelling long-term investment opportunity. This growth is fueled by rapid technological advancements and rising global demand for cleaner, more sustainable alternatives.

Additionally, investing in renewable energy supports the global shift toward sustainability and could offer the potential for attractive returns in a rapidly evolving market.

These renewable energy companies are the top players in generating, storing, or delivering renewable energy. While recent performance can offer some insights, it’s important to remember that strong returns today don’t always guarantee future success. This is because stock performance can shift just as quickly. Remember, investing in single stocks always carries risk, so it's wise to proceed carefully.

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The annual performance figures referenced are based on data from MarketWatch as of April 16, 2025. Please know that these figures are subject to change and may fluctuate over time.

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The world is undergoing a major transition toward cleaner, more sustainable energy sources. This global shift is not just a response to climate change. It’s reshaping industries, influencing policy decisions, and opening up new avenues for economic growth. As countries are challenged to reduce their carbon emissions and meet international climate targets, renewable energy is emerging as a key driver toward this change.

» View our list: Energy stocks to add to your watchlist

Governments worldwide, including Singapore, are actively driving the transition to green energy. Singapore’s Green Plan, a comprehensive, whole-of-nation initiative, shows the country’s commitment to sustainable development. As one of the most solar-dense cities globally, Singapore presents promising opportunities for investors. Supporting companies involved in solar energy production and infrastructure could offer attractive long-term financial benefits.

Beyond the economic appeal, investing in renewable energy also aligns with ethical and environmental values. It could help reduce global dependence on fossil fuels and support a cleaner planet for future generations.

» Learn more: Check out other ethical investments for investors

If you're interested in supporting clean energy but don’t have the time or expertise to research individual companies, ESG funds offer a simpler and more diversified way to invest in sustainability. ESG stands for Environmental, Social, and Governance — three key criteria used to assess a company’s ethical impact and sustainability practices. ESG funds focus on investing in companies that align with these values.

Essentially, ESG funds are mutual funds or exchange-traded funds (ETFs) that use ESG criteria as part of their investment strategy. These funds may be invested in companies that reduce carbon emissions, promote fair labour practices, or maintain strong corporate governance. The fund managers evaluate companies based on ESG performance alongside traditional financial metrics.

That said, some investors remain cautious about ESG funds due to concerns about transparency. In particular, there have been growing debates around "greenwashing", where funds may appear more sustainable than they truly are. This highlights the importance of reviewing fund disclosures and understanding how ESG criteria are applied before investing. It’s important to review fund disclosures before investing in any type of mutual fund.

» Discover alternative energy fund: Explore our top-rated ESG funds