The best companies and funds for green energy investments

The global energy industry is undergoing rapid change due to the global shift to sustainable energy sources. Governments in the U.S., Europe and Asia are actively investing in renewable energy development, allocating billions of dollars to support green technologies. The U.S. is promoting large-scale infrastructure programs aimed at developing solar and wind energy, including the allocation of $369 billion under the Inflation Reduction Act. The European Union is implementing a €1 trillion Green Deal plan for clean energy projects through 2030. China has invested more than $380 billion in renewable energy in 2023, confirming its leadership in the sector. These investments are fueling the growth of the renewable energy sector and present unique opportunities for investors.

Leading companies for green energy investment

Canadian Solar

Canadian Solar (CSIQ)Canadian Solar is one of the world's largest solar panel manufacturers and solar power project developers. The company is present in more than 20 countries and has built solar power plants with a total capacity of over 20 GW. In 2023, Canadian Solar increased revenue by 42% to $7.5 billion. By 2026, the company plans to double its solar panel production and expand its battery systems business.In the third quarter of 2024, Canadian Solar reported net revenue of $1.5 billion and a gross margin of 16.4%. Despite a net loss of $14 million, the company is aggressively expanding its market presence and expects demand for solar solutions to grow in the coming years.

First Solar

First Solar (FSLR)First Solar specializes in manufacturing solar panels with thin film technology that reduces the carbon footprint of production. In 2023, the company invested $1.2 billion in new manufacturing capacity in the US, which will increase production to 10 GW by 2025. The company's net income in 2023 was up 75% year-on-year, confirming its steady growth.In the third quarter of 2024, First Solar recorded net income of $313 million ($2.91 per share), up 16.6% year-on-year. However, the company lowered its full-year revenue forecast to $4.1-$4.25 billion from the previously expected $4.4-$4.6 billion, due to slowing demand growth.

General Electric

General Electric (GE)General Electric has a leading position in the hydroelectric and wind energy sector. After acquiring Alstom SA, the company controls about 25% of the global hydro turbine market. In 2023, GE invested $2 billion in the development of wind turbines and modernization of hydropower plants. GE plans to increase renewable energy production by 30% by 2030.

Siemens AG

Siemens is actively developing the areas of small hydro power plants and smart energy grids. In 2023, the company invested €800 million in the digitalization of energy systems and the development of hydrogen energy. Siemens also implements major projects in wind energy, ranking second in the world in the supply of wind turbines.

Vestas Wind Systems

Vestas Wind Systems (VWS)Vestas is a global leader in the manufacture of wind turbines. The company has installed more than 160 GW of wind turbines worldwide. In 2023, Vestas increased revenue by 20% to $18 billion.The company is actively developing new technologies, including hybrid wind turbines and energy storage systems.In the first quarter of 2024, Vestas reported revenue of €2.7 billion.Order bookings reached a record 2.3 GW, highlighting the strong demand for the company's wind turbines.

The best funds for investing in renewable energy

Investing in individual companies requires in-depth analysis, market knowledge and regular monitoring of company performance. For those looking for a more convenient and diversified way to invest in green energy, investment funds are a great solution. They offer ready-made portfolios consisting of shares of leading companies in the renewable energy sector. Such funds allow you to minimize risk and allocate capital between different segments of the industry, including solar, wind and hydro.

Invesco WilderHill Clean Energy

Invesco WilderHill Clean Energy ETF (PBW)PBW includes about 73 companies involved in the development and deployment of green technologies. Over the past five years, the fund has posted an average annual growth rate of 15%. Its portfolio includes Canadian Solar, First Solar, and Enphase Energy.The PBW fund has posted 12% growth in 2024 despite volatility in the renewable energy market. The fund focuses on companies developing new clean energy technologies, including solar, hydrogen and battery technology. This makes it attractive to investors looking to invest in innovation.

iShares Global Clean Energy

iShares Global Clean Energy ETF (ICLN)ICLN covers more than 40 companies in the renewable energy sector. The fund is up 18% in 2023, driven by growth in stocks of companies like NextEra Energy and Orsted. ICLN provides diversified exposure to solar, wind and hydropower.The ICLN fund posted a 14% capital gain in 2024, driven by growing demand for clean technology. More than 45% of the fund's assets are concentrated in US companies, with the remainder invested in leading global energy companies.

Invesco Solar

Invesco Solar ETF (TAN)TAN focuses on the solar energy sector. It has a 22% return in 2023 and a capitalization of over $3 billion.The fund's portfolio includes industry leaders such as SolarEdge Technologies and Sunrun.The TAN fund has posted solid growth of 17% in 2024, driven by an expanding global solar panel market and investments in energy storage technologies. The fund actively invests in companies involved in the development of photovoltaic systems and solar inverters.

First Trust Global Wind Energy

First Trust Global Wind Energy ETF (FAN)FAN focuses on companies in the wind energy industry. The fund has posted 25% growth over three years. It is composed of leading players including Vestas and Siemens Gamesa.The FAN fund is up 15% in 2024, driven by strong wind farm construction in Europe and Asia. The fund invests in major wind energy companies, including turbine manufacturers and infrastructure solution providers.

Global X Renewable Energy Producers

Global X Renewable Energy Producers ETF (RNRG)RNRG invests in leading renewable energy producers. The fund is up 19% in 2023. It provides exposure to solar, wind and hydropower around the world.The RNRG fund increased its capitalization by 16% in 2024, driven by the growing demand for clean energy. Its portfolio includes leading solar and wind energy producers as well as companies building renewable energy infrastructure.

Conclusion

The renewable energy sector is witnessing steady growth, driven by government support, technological innovation and cost reduction. The global renewable energy market is projected to reach $2 trillion by 2030. Investments in green energy can provide long-term returns and contribute to the sustainable development of the global economy.