Invest in renewable energy stocks

Renewable energy stocks have been investors' favourites in recent years.

As the world moves towards sustainability, renewable energy is becoming a major priority of governments and businesses around the world. For countries such as Australia, China and India where electricity is largely generated from high carbon-emitting coal, many see the future of renewable energy as critical.

If you're looking to invest in companies that support the growth of sustainable energy sources, you can start here.

How do I buy renewable energy stocks?

1. Choose a share trading platform. If you're a beginner, our table below can help you choose.
2. Open your account. You'll need your ID, bank details and tax file number (TFN).
3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
4. Find the shares you want to buy. Search the platform and buy your shares. It's that simple.

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Moomoo Share Trading

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eToro

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Tiger Brokers

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Why invest in renewable energy?

In the last century, we've come to rely on fossil fuels to create electricity, power our vehicles and drive manufacturing. But overwhelming evidence says the extraction and use of coal, oil and gas are causing irreversible environmental damage and global warming. Fossil fuels are also finite – over time, we'll be forced to rely on alternative energy sources regardless of our environmental views. This is driving investors towards renewable energy stocks.

This creates a big opportunity as economies look to decarbonise. According to McKinsey, net zero will cost the world $9.2 trillion every year. And that spending by big businesses and governments is creating opportunities for investors. After all, that money has to go somewhere and into something. So investors can purchase shares in the companies helping to create a net-zero planet.

Adding to the opportunity is simply population growth. Studies suggest the world's population is expected to reach almost 10 billion by 2050. Both environmental constraints and limited fuel and water supply (used in mining) will increase our need for renewable and clean energy sources. For these reasons, investing in renewable energy makes both environmental and money sense.

Finder survey: How many Australians take ethical/ESG considerations into account when investing?

How do I invest in renewable energy?

Several categories of renewable energy stocks include solar power, wind power, biomass, geothermal and hydroelectric. Some include nuclear energy to that list despite its controversy. In some cases, you can even invest in the metals that will be used in the net-zero transition.

Below is a list of ways that you can invest in companies that support renewable energy.

• ASX renewable energy stocks. You can buy shares in renewable energy companies listed on the Australian share market.
• International stocks. Some of the biggest renewable energy companies are listed on stock exchanges in overseas markets such as the US or Canada. Access these through a broker that offers international shares.
• Sustainability ETFs. ETFs contain a bundle of stocks, usually hundreds, and these often track an index of stocks. The renewables sector is still very small in Australia so there are few options to date for renewable energy ETFs on the ASX. There are many to choose from on global exchanges.
• Micro-invest. Some investment apps such as Raiz and CommSec Pocket offer sustainability funds that may support renewable energy companies. However, keep an eye out for what you actually own to make sure it aligns with your personal values.
• Superannuation. You might also be able to invest in renewable energy through your superannuation, depending on what options it offers. Most of the big funds will have an ethical option that contains some renewable equities in it while some smaller funds are exclusively related to environmental, social and governance (ESG).

Compare share trading platforms to buy stocks

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Name	Product AUFST	Price per trade	Inactivity fee	Asset class	International
eToro Exclusive		US$2	US$10 per month if there’s been no log-in for 12 months	ASX shares, Global shares, US shares, ETFs	Yes	Exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account. T&Cs apply. Trade stocks, commodities and currencies from the one account and get access to social trading.	Go to siteMore Info Compare	loading Fetching your data...
CMC Invest Finder AwardExclusive		$0	$0	ASX shares, Global shares, Options trading, US shares, ETFs	Yes	Finder exclusive: Get $100 trading credit when you transfer $10k+ of either Australian or international stocks to CMC Invest. Only available for the first 50 new clients to participate. Use promo code “100CMC”. T&Cs apply. Trade over 45,000 shares and ETFs from Australia and 15 major global markets. Plus, buy Aussie shares or ETFs for $0 brokerage up to $1,000 (First buy order of each security, each day - excludes margin loan settled trades).	Go to siteMore Info Compare	loading Fetching your data...
Tiger Brokers Finder AwardExclusive		US$1.99	$0	ASX shares, Global shares, Options trading, US shares, ETFs	Yes	Finder exclusive: Get 4 brokerage-free trades and pay no FX fees on the first $2,000 you exchange each month with first deposit of any amount + plus get an $80 cash voucher when you deposit up to $2000. T&Cs apply. Trade US, Asian and CHESS-sponsored ASX stocks and US options.	Go to siteMore Info Compare	loading Fetching your data...
Moomoo Share Trading Exclusive		US$0.99	$0	ASX shares, Global shares, Options trading, US shares, ETFs	Yes	Finder exclusive: Unlock up to AUD$4,000 AND US$4,000 in $0 brokerage over 60 days. T&Cs apply. Trade US, Asian and CHESS-sponsored ASX stocks and get access to social trading.	Go to siteMore Info Compare	loading Fetching your data...
Superhero share trading Exclusive		$2	$0	ASX shares, US shares, ETFs	Yes	Sign up with code ‘finder24’ and get US$10 of Nvidia stock when you fund your account with $100 or more within 30 days. T&Cs apply. Enjoy US$2 brokerage (other fees may apply) on US stocks and buying ETFs as well as $2 fee to trade Australian shares up to $20,000.	Go to siteMore Info Compare	loading Fetching your data...

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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Frequently asked questions

• What are the best renewable energy stocks to buy?

  Some of the best renewable energy stocks to consider in Australia include companies like Fortescue Future Industries, AGL Energy and Infigen Energy. These companies are involved in various renewable sectors such as wind, solar and hydrogen energy. As the sector grows, these stocks may offer long-term potential for investors.

• Is it worth investing in renewable energy?

  Yes, investing in renewable energy is considered promising due to the increasing global shift towards sustainability. Governments and corporations are ramping up efforts to transition to cleaner energy and the sector is expected to see significant growth in the coming years. However, as with any investment, it is important to consider market volatility and long-term potential.

• What is the fastest growing renewable energy market?

  Globally, solar energy is one of the fastest-growing renewable energy markets, driven by decreasing costs and increased government support. In Australia, the solar industry is expanding rapidly, with rooftop solar installations and large-scale solar farms contributing significantly to the nation's energy grid. Wind energy is also growing steadily, offering further diversification in renewable energy investments.

• Can I use any bank account for my business?

  If you're a sole trader, you can use a personal bank account to make and receive payments. But it is advisable to use a dedicated bank account to keep personal and business finances separate, so you can make sense of your deductions and income easily at tax time.

To make sure you get accurate and helpful information, this guide has been edited by Joselle Delos Reyes as part of our fact-checking process.

Written by

Kylie Purcell

Investments analyst

Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs. See full bio

Kylie's expertise

Kylie has written 134 Finder guides across topics including:

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Co-written by

Cameron Micallef

Writer

Cameron Micallef was an investment and utilities writer for Finder. He previously worked on titles including Smart Property Investment, nestegg and Investor Daily, reporting across superannuation, property and investments. Cameron has a Bachelor of Communication and Media Studies/ Commerce from the University of Wollongong. Outside of work Cameron is passionate about all things sports and travel. See full bio

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Cameron has written 161 Finder guides across topics including:

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