As of December 7, 2025, green energy stocks are back on investors’ radar. After a brutal 2021–2023 slump, the sector is benefiting from surging electricity demand from AI data centers, ongoing electrification, and a renewed focus on energy security – even as political headwinds in the U.S. make the landscape more complicated than it was a few years ago. [1]
Below is a detailed, news-driven look at the best green energy stocks to watch right now, based on the latest earnings, forecasts and policy developments available on 7 December 2025.
Important: This article is for information and education only, not personalized investment advice. Always do your own research or consult a licensed financial adviser before investing.
1. The 2025 backdrop: AI, power scarcity and politics
AI data centers are super-charging power demand
In the last 12–18 months, the biggest new driver for clean energy has been AI infrastructure:
- BloombergNEF now expects U.S. data centers to draw about 106 gigawatts of power by 2035, a 36% upward revision from its April outlook – a sign of how quickly the sector’s load forecasts are rising. [2]
- That’s roughly the power needed for tens of millions of homes, and many new facilities are planned in the 100+ MW range, with even gigawatt-scale sites emerging. [3]
AI’s power hunger is driving:
- Fresh demand for utility-scale wind and solar
- New interest in nuclear as “always on” zero‑carbon baseload
- Creative solutions like on-site fuel cells (e.g., Bloom Energy) and large‑scale battery storage [4]
Renewables stocks are recovering from a deep slump
According to a recent Reuters analysis, dedicated renewable energy equity funds saw net outflows for much of 2022–2023, but 2025 has brought a sharp turnaround:
- Alternative energy funds have notched their strongest quarterly rise since the early‑2020s “green boom”, helped by an improving rate outlook and AI‑driven power demand.
- The MSCI Global Alternative Energy index trades at roughly 14–15x forward earnings, about 40% cheaperthan the broader world stock index – even after a mid‑year rally. [5]
This combination of better sentiment + discounted valuations + rising demand is exactly what long‑term investors usually look for.
But U.S. policy risk is back in a big way
The bullish story has a major caveat: Washington politics.
- A July memo from Interior Secretary Doug Burgum now requires his personal sign‑off on a wide range of solar permits, which U.S. developers say has created a “nearly complete moratorium” on new projects involving federal land or resources. [6]
- In early December, 143 U.S. solar companies wrote to congressional leaders urging them to overturn the policy, warning that more than 500 projects could be delayed or cancelled and that businesses need regulatory certainty to keep investing. [7]
- Earlier in 2025, new universal tariffs of around 10% on many imported solar modules forced First Solar and others to revise guidance, even as domestic U.S. manufacturing ramp‑up continues. [8]
At the same time, the White House has leaned hard into nuclear and gas, including an $80 billion plan to build new Westinghouse reactors and multiple moves to support gas‑fired power as a “bridge fuel.” [9]
So, in late 2025, the winners in green energy tend to be companies that:
- Can navigate policy risk (or benefit from it)
- Are plugged into data‑center and industrial power demand
- Have strong balance sheets and long‑term contracts
- Trade at reasonable valuations after the sector’s drawdown
2. How we picked the “best” green energy stocks
Across recent institutional and retail analyses, common filters for top renewable names include: [10]
- Majority of revenue or generation from low‑carbon energy (wind, solar, hydro, geothermal, storage, or nuclear)
- Scale and diversification, ideally across both generation and grids or infrastructure
- Contracted cash flows with utilities, large corporates, or governments
- Solid financials – reasonable leverage, positive earnings or clear path to them
- Visible growth pipeline (backlog of projects or long‑term power contracts)
With that in mind, here are seven of the most compelling green energy stocks to watch in December 2025, plus a few global and ETF ideas for diversification.
3. Seven best green energy stocks to watch right now
1. NextEra Energy (NYSE: NEE)
World’s largest wind/solar utility, now tied to AI‑driven nuclear
NextEra Energy is the largest producer of wind and solar power in the world and owns Florida Power & Light, the biggest regulated utility in the U.S. [11]
Recent catalysts:
- Q3 2025: NextEra beat Wall Street profit estimates as its renewables division benefited from surging power demand, particularly from AI‑focused data centers. [12]
- The company has a massive pipeline: it expects to add ~36.5–46.5 GW of new renewables and storage between 2024 and 2027 under its long‑term “Real Zero” plan. [13]
- In October 2025, NextEra and Google agreed to restart the Duane Arnold nuclear plant in Iowa to supply zero‑carbon power to Google’s data centers – a flagship example of AI demand reviving U.S. nuclear. [14]
Analysts at outlets like Kiplinger note that:
- NEE is still a go‑to core holding for green‑energy‑oriented investors.
- Management expects to grow the dividend by about 10% annually at least through 2026, supported by a deep renewables backlog and growing transmission business. [15]
Why it stands out:
NEE offers a mix of defensive regulated utility cash flows and growth from renewables and nuclear tied directly to AI demand – a rare combination in this space.
Key risks:
- U.S. policy shifts that weaken tax credits
- Rising construction costs and permitting delays
- Political blowback around data centers and nuclear expansion
2. First Solar (NASDAQ: FSLR)
U.S. solar champion with a huge backlog – and tariff noise
First Solar is the leading U.S. thin‑film solar module manufacturer, focused on large‑scale projects rather than rooftop installations. It’s one of the biggest beneficiaries of domestic‑manufacturing incentives, but also one of the clearest examples of how 2025’s tariff environment can bite.
Recent developments:
- Q3 2025 results showed net sales around $1.6 billion and strong profits, with the company maintaining robust margins despite a choppy pricing environment. [16]
- First Solar’s contracted backlog is enormous: earlier in 2025, it exceeded 60 GW of modules worth over $16 billion, with additional bookings later in the year. [17]
- In April, First Solar cut its 2025 sales guidance because of new universal tariffs introduced by the Trump administration, assuming a 10% tariff on imported modules for much of the year. [18]
On the positive side, the company is rapidly expanding U.S. manufacturing capacity:
- New facilities in Alabama and Louisiana are set to push U.S. nameplate capacity beyond 14 GW by 2026, reducing reliance on overseas plants in India, Malaysia and Vietnam that are more exposed to tariffs. [19]
Why it stands out:
First Solar offers pure‑play exposure to utility‑scale solar build‑out, with a huge backlog and cutting‑edge technology (its CdTe thin‑film modules often perform well in hot climates and at scale). It’s one of the clearest long‑term winners if global solar capacity keeps compounding.
Key risks:
- U.S. trade and tariff policy is both a tailwind and a wild card
- Permitting “moratorium” on some U.S. solar projects could slow new orders [20]
- Ongoing concerns about past module quality issues and the need to prove reliability at scale [21]
3. Brookfield Renewable (NYSE: BEP / BEPC)
Global clean‑power platform with hydro, wind, solar – and nuclear upside
Brookfield Renewable operates a globally diversified portfolio of hydro, wind, solar and storage assets, and is increasingly positioned at the heart of the AI power build‑out.
Q3 2025 highlights:
- Generated about $302 million in Funds From Operations (FFO) in the quarter, up 10% year‑over‑year, with strong performance in hydro and wind/solar. [22]
- Management reiterated a long‑term total return target of 12–15%, driven by contracted cash flows and disciplined capital recycling. [23]
- Brookfield executed $7.7 billion in financings and commissioned ~1.8 GW of new projects in Q3 alone, while signing additional long‑term power contracts for around 4,000 GWh/year. [24]
Strategic AI and nuclear angles:
- Brookfield, via its ownership of Westinghouse, is a key partner in the U.S. government’s plan to invest at least $80 billion in new nuclear reactors, aimed partly at supporting AI‑driven power demand. [25]
- Brookfield has struck major long‑term hydro and renewables contracts with hyperscalers like Google and Microsoft, supplying low‑carbon baseload power for cloud and AI workloads. [26]
Why it stands out:
BEP/BEPC offers an integrated bet on “any-and-all” low‑carbon power – hydro, wind, solar, storage and nuclear – with explicit exposure to AI data centers through both nuclear (Westinghouse) and clean power PPAs.
Key risks:
- Complex structure and leverage typical of infrastructure partnerships
- Currency and policy risk across multiple geographies
- Execution risk in large nuclear and storage projects
4. Bloom Energy (NYSE: BE)
Explosive AI‑power growth play using fuel cells – high reward, high risk
If you want the highest‑beta AI + green‑power stock, Bloom Energy is hard to ignore.
Bloom makes solid oxide fuel cells that provide on‑site power for data centers and industrial facilities. While fuel cells can run on natural gas as well as hydrogen, they’re pitched as a lower‑carbon, highly reliable alternative to conventional grid power, especially in grid‑constrained markets. [27]
Key 2025 catalysts:
- In October, Brookfield and Bloom announced a $5 billion strategic AI infrastructure partnership. Brookfield will deploy Bloom fuel cells across new “AI factories”, starting with a European data center site, making Bloom a preferred onsite power provider for Brookfield’s AI infrastructure platform. [28]
- Bloom has already deployed roughly 1.5 GW of low‑carbon power across more than 1,200 installations worldwide, including facilities for American Electric Power, Equinix and Oracle. [29]
- The company is riding a wave of AI‑related deals – from Oracle data centers to a planned 900 MW Wyoming power facility using Bloom fuel cells, which helped spark a major stock re‑rating. [30]
Performance and sentiment:
- One recent analysis notes that Bloom stock is up well over 200% in 2025 and had gained more than 500% year‑to‑date by early November, driven by a string of record quarters and AI partnerships. [31]
- Q3 2025 marked Bloom’s fourth consecutive record for quarterly revenue, with sales up ~57% year‑on‑year, according to commentary cited by Nasdaq. [32]
Why it stands out:
Bloom is essentially a “picks-and-shovels” AI power play that still has a strong sustainability narrative. It sits squarely at the intersection of decarbonization, grid constraints and AI.
Key risks:
- Extremely volatile stock; analysts describe unusual frequency of ±5% daily moves. [33]
- High expectations are priced in after the huge run‑up; any slowdown in AI data‑center build‑out could hurt. [34]
- Fuel‑cell economics depend on fuel costs and regulatory treatment of low‑carbon fuels.
5. Vestas Wind Systems (CPH: VWS)
Wind‑turbine leader coming out of its downturn
Vestas is the global leader in wind turbines, with a strong footprint in both onshore and offshore markets and a growing service business.
Q3 2025 snapshot:
- Revenue of €5.3 billion, up 3% year‑on‑year.
- EBIT margin of 7.8%, its highest profitability metrics in about five years.
- Order intake of 4.6 GW, up 4% year‑on‑year, with strong demand in the U.S. and Germany. [35]
- Backlog climbed to about €31.6 billion, and Vestas launched a €150 million share buyback on the back of improved results. [36]
Strategic moves:
- Vestas is expanding manufacturing in Poland, doubling capacity at a blade factory to support its latest onshore turbines and creating hundreds of new jobs, reflecting robust European demand. [37]
- Management has highlighted that AI‑driven electricity demand is reinforcing the case for large volumes of new wind capacity, especially in the U.S. and Europe. [38]
Why it stands out:
After several years of margin pressure from inflation, supply‑chain issues and poorly structured contracts, Vestas is back to healthy profitability with a massive backlog – and is one of the purest ways to play global wind deployments.
Key risks:
- Sensitive to tariffs and trade spats affecting turbine components [39]
- Offshore ramp‑up still weighs on margins
- Permitting and grid bottlenecks can delay projects, especially in Europe
6. Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI)
Financing the transition: an income‑oriented play on clean infrastructure
Hannon Armstrong (branded HASI) is a specialized financier that invests in sustainable infrastructure – including utility‑scale renewables, energy‑efficiency projects, and grid‑related assets – typically under long‑term contracts.
Q3 2025 results were particularly strong:
- Record adjusted EPS of $0.80, beating forecasts by roughly 16% and marking the highest quarterly EPS in company history. [40]
- Revenue of about $103 million, ahead of consensus estimates. [41]
- Adjusted recurring net investment income grew 42% year‑over‑year in Q3 and 27% year‑to‑date. [42]
- HASI closed a $1.2 billion structured equity investment in a major North American clean‑energy project, its largest investment to date, helping push managed assets to roughly $15 billion. [43]
Management continues to guide for 8–10% compound annual EPS growth through 2027, banking on a multi‑billion‑dollar pipeline of projects. [44]
Why it stands out:
HASI is effectively a “picks-and-shovels” lender and equity partner to the broader energy transition, with exposure across solar, wind, storage and efficiency – and a track record of growing recurring income.
Key risks:
- It’s a highly leveraged financial stock; GuruFocus rates its financial strength as relatively weak, with a debt‑to‑equity ratio near 1.9. [45]
- Sensitive to interest rates and credit conditions
- Regulatory shifts in clean‑energy incentives could affect its pipeline
7. Clearway Energy (NYSE: CWEN)
Contracted renewables yieldco with steady cash flows
Clearway Energy owns and operates contracted renewable and conventional power assets – primarily wind and solar farms along with some gas plants and district heating.
According to recent coverage from Benzinga:
- Most of Clearway’s revenue comes from selling power and capacity under long‑term, fixed‑price agreementswith local utilities and counterparties. [46]
- The portfolio is heavily skewed toward renewables, making CWEN a hybrid of a yield play and a green‑power owner. [47]
While the stock is interest‑rate‑sensitive – and got hit hard during the 2022–2023 rate spike – its contracted nature means cash flows are relatively predictable, making it a favourite for income‑oriented investors seeking exposure to renewables.
Why it stands out:
CWEN isn’t as flashy as AI‑linked plays, but it provides steady dividends backed by long‑term PPAs, with meaningful exposure to U.S. wind and solar.
Key risks:
- Higher‑for‑longer interest rates can compress valuations for yield‑oriented names
- Counterparty risk if off‑takers run into financial trouble
- Regulatory risk around contract renewals and market design
4. Global champions and ETFs for diversification
If you don’t want to pick individual U.S. names only, there are several global utilities and ETFs that analysts highlight in late 2025.
Iberdrola (BME: IBE) – Spain’s renewables giant
A recent deep‑dive points to Iberdrola as a standout global utility:
- 5‑year total return of about +50% and 1‑year return around +16% as of mid‑September 2025.
- Dividend yield around 4%, with a long history of payouts. [48]
- One of the world’s largest owners of onshore/offshore wind, solar and hydro, plus transmission networks, with operations across Europe and the Americas. [49]
Ormat Technologies (NYSE: ORA) – Geothermal specialist
Benzinga and others highlight Ormat as a differentiated green‑power play:
- Focused on geothermal energy and related technologies, providing baseload, low‑carbon power rather than intermittent output. [50]
- Solid long‑term return profile with meaningful growth in the past five years. [51]
Clean‑energy ETFs – for broad exposure
For investors who don’t want to pick single stocks, renewable‑energy ETFs remain a popular approach:
- The LiteFinance review notes that curated baskets of renewables and clean‑tech stocks have delivered average gains of around 20% over the past year, though with high volatility. [52]
- Well‑known examples (not an exhaustive or endorsed list) include global clean‑energy and solar‑focused ETFs that spread risk across dozens of companies and regions. [53]
5. Key risks for green energy investors in late 2025
Even with powerful tailwinds, green energy is not a straight‑line story.
Political and regulatory whiplash
- The solar permitting freeze at the U.S. Interior Department shows how quickly policy can change and stall hundreds of projects at once. [54]
- Some recent laws have cut or reshaped green‑energy support while boosting gas and nuclear, forcing companies to pivot their strategies. [55]
AI power forecasts could be too optimistic
- A Breakingviews column from Reuters warns that AI‑related power‑demand projections may be “hallucinating”, with some estimates calling for data centers to consume about 12% of U.S. electricity by 2030 – numbers that may encourage over‑building and later disappointments. [56]
- If AI spending slows or efficiency improves faster than expected, companies priced as pure AI‑power winners(like Bloom) could face sharp corrections. [57]
Technology and execution risk
- Manufacturing issues (such as earlier module concerns at First Solar) or cost overruns in offshore wind or nuclear can quickly erode profitability. [58]
- Grid bottlenecks and local opposition to large projects can delay or cancel investments.
Interest rates and capital markets
- Many of these companies are capital‑intensive and rely on issuing debt and equity; higher rates or tighter credit can squeeze returns (especially for yieldcos and finance platforms like CWEN and HASI). [59]
6. How to use these ideas in a portfolio
If you’re building or refreshing a green‑energy allocation, one way to think about it is by “role” rather than just ticker:
- Core, relatively defensive holdings
- NextEra Energy (NEE) – regulated utility + renewables + nuclear
- Iberdrola – diversified global clean‑energy utility
- Diversified infrastructure owners
- Brookfield Renewable (BEP/BEPC) – hydro/wind/solar/storage + nuclear exposure
- Growthier technology and equipment plays
- First Solar (FSLR) – utility‑scale solar manufacturing
- Vestas (VWS) – wind‑turbine leader
- Ormat (ORA) – geothermal
- High‑beta AI‑power and financing names
- Bloom Energy (BE) – AI‑driven on‑site fuel cells
- Hannon Armstrong (HASI) and Clearway (CWEN) – infrastructure and yield plays linked to the broader energy transition
For many investors, a core position in a clean‑energy ETF, supplemented by a small number of individual names, strikes a reasonable balance between diversification and conviction.
Again, none of this is a recommendation to buy or sell specific securities. The right mix depends on your risk tolerance, time horizon, broader portfolio and tax situation.
References
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