How to start investing in renewable energy
Investing in renewable energy can be a great way of supporting projects that help the environment and reduce carbon emissions. Here’s what you need to know to get started.
More people are looking to invest in a way that reduces harm and supports the environment.
That makes investing in renewable energy a great option for ethical investors.
So how do you get started, and what are the best ways to invest in renewable energy?
Renewable energy investments support sustainability, with sources like solar, wind, and hydropower offering long-term potential and lower carbon emissions.
Governments globally are backing renewable energy, creating growth opportunities and increasing demand for investment in green technologies.
Investment options include stocks, renewable energy funds, and private investments, each with varying risks and potential returns.
A financial adviser can assess the risk for you and help you invest in a way that works for you.
What is renewable energy?
Renewable energy is generated from sources that can regenerate indefinitely.
Unlike fossil fuels, (like coal, oil and gas), which could eventually run out, renewable energy sources like the sun, wind, rivers and oceans have almost infinite power potential.
Renewable energy sources also produce far fewer emissions than burning fossil fuels, making them more sustainable power solutions.
Some types of renewable energy are better for a low-carbon future than others.
Solar power has the potential to meet the world’s energy demands and produces virtually no carbon emissions.
Biomass fuel, on the other hand, can lead to deforestation and generates carbon emissions — albeit fewer than fossil fuels.
What are the different types of renewable energy?
People have been harnessing renewable energy for hundreds of years, but energy suppliers first began to offer renewable energy solutions at the start of the 21st century.
Even though the technologies were extremely expensive at first, the cost of wind and solar energy has dropped massively — making them a similar price to fossil fuels.
There are a few different types of established renewable energy, such as:
Solar: Using solar (photovoltaic) panels to convert the sun’s rays into electricity and other forms of energy
Wind: Onshore and offshore turbines that harness wind to generate electricity
Geothermal: Using the Earth’s natural heat from reservoirs
Hydropower: Harnessing energy from running water
Scientists are also exploring other renewable power options.
Using the energy of the ocean, for example, is just one of the most exciting new areas of renewable energy research.
Why invest in renewable energy?
Here are some of the top reasons to consider investing in renewable energy:
Ethical impact: invest in line with your values and contribute to a greener future
Tech revolution: ride the wave of innovation as renewable energy leads in cutting-edge advancements
Global support: governments worldwide back renewable energy, driving its expansion and success
Economic boost: the creation of new job opportunities, especially in rural areas, while reducing reliance on fuel imports
Is renewable energy a good investment?
The ongoing climate crisis won’t go away on its own and it’s clear the world needs to do more to limit climate change.
The UK now gets more than half (50.4%) of its energy from renewable sources and has committed to getting 95% of its electricity from low-carbon sources by 2030, and decarbonising electricity fully by 2035.
Governments across the world have made similar pledges.
But without continued investment into renewable energy and new technologies that help us extract more energy from carbon-neutral sources, these targets will be difficult to hit.
It’s estimated the UK alone needs an extra £500 million in renewable energy investment to meet its goals — most of which will come from non-government investors.
It's clear that renewable energy isn’t a flash in the pan, but it is still considered a niche sector for investors.
While no investment is risk free, the future of energy has to be more sustainable, making renewable energy a savvy and ethical investment.
How to invest in renewable energy
If you’d like to keep it simple, buying stocks in an energy company that offers renewable energy is an obvious route.
Large, proven businesses have a lower chance of failure than a renewable startup — but the chance is never zero and since the 2021 energy crisis 65 energy suppliers have gone bust.
In 2025, some of the most interesting renewable energy companies to invest in according to IG include:
NextEra Energy (NYSE - NEE): A Fortune 200 company committed to shaping the future of energy through innovation and investments in clean energy throughout North America.
GE Vernova (NYSE - GEV): Formerly known as GE Power and GE Renewable Energy, is an American energy technology company based in Massachusetts. GE Vernova’s ambition is to transform the global energy industry by advancing the shift to cleaner and more sustainable energy.
Sungrow Power Supply (SZ - 300274): Sungrow Power Supply is a Chinese solar photovoltaic inverter manufacturing company. They are a global leader in the development and production of solar inverters, which convert the direct current electricity captured by solar panels into usable alternating current electricity.
Disclaimer: the above should not be considered investment advice and it's recommended you get professional advice before making any investment decisions.
But investing in single stocks is always higher risk than investing in a portfolio of investments.
For that reason it may make more sense for everyday investors to support the future of green energy by investing in renewable energy funds.
They’re also typically managed by investment managers who understand the complexity of this niche sector and can maximise your chance of returns.
What are the best renewable energy funds?
If you’d prefer to diversify your investment a bit more, you can invest in a fund or investment trust that invests in renewable energy companies.
No investment is ever risk free, but a fund or trust lets you add to a pool of money that is spread across a range of stocks, assets and Commodities.
Fidelity cites the following as three high yielding renewable energy trusts:
The Renewables Infrastructure Group
Foresight Solar Fund
Bluefield Solar Income
Alternatively you can buy renewable energy exchange traded funds (ETFs).
The Motley Fool tips these three renewable energy ETFs for 2026:
iShares Global Clean Energy
Wisdom Tree Energy Transition Metals
Global X Clean Tech
The future of renewable energy
Exciting times lie ahead in the realm of renewable energy.
As technology continues to evolve and governments unite for a greener planet, this sector's potential continues to grow.
From ethical investments to technological innovations, from global sustainability to local economic growth, the future of renewable energy looks bright.
By joining the renewable revolution, you're not just investing – you're shaping a cleaner, more prosperous world for generations to come.
How can a financial adviser help?
Before you look to invest in renewable energy, it’s sensible to research the most recent performance of funds you’re interested in.
And if you’re really not sure where to put your money, reach out to a professional.
A financial adviser will look at the entire market, rather than solutions from one provider, and give you an unbiased view of the best options for you.
They’ll assess your appetite for risk and direct you towards investment options that are aligned with your outlook and goals.
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