Renewable energy is a hot topic right now. Sustainability continues to grow in importance, and combined with an oil and gas crisis, there are a lot of companies and individuals turning to renewables instead.
The world is continuing to move away from carbon-based fossil fuels in favour of cleaner alternative energy sources. Decarbonising the global economy will take an investment of over $100trn over the next three decades, experts have estimated.
So, with the rise of popularity in the renewable energy sector, is investing in renewable energy stocks a good idea? Let’s break it down.
What are renewable energy stocks?
Renewable energy stocks allow you to invest in companies at the centre of the green energy transition and will allow you to share in any successes these companies have along the way.
Renewable energy sources include solar power, wind, biofuels and even nuclear. These all aim to produce the energy we all require without emitting any (or much) carbon.
You may have seen examples of renewable energy in the form of wind turbines or perhaps solar panels on houses. These are becoming more and more common, demonstrating the rise in renewable energy, a largely emerging market.
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Top renewable energy stocks in the UK
Here are some of the top renewable energy stocks by highest market cap:
| Company name | Market Cap | Description |
| SSE (LSE:SSE) | £16.6bn | Multinational energy company focused on renewable energy sources. |
| Greencoat UK Wind (LSE:UKW) | £2.3bn | Investor in and operator of onshore and offshore UK wind farms. |
| ITM Power (LSE:ITM) | £176.3m | Energy storage and clean fuel company focused on green hydrogen. |
| Ceres Power Holdings (LSE:CWR) | £100.9m | A fuel cell technology and engineering company focused on clean energy. |
| AFC Energy (LSE:AFC) | £50.9m | Developer of alkaline fuel cells, which use hydrogen for electricity production. |
SSE
Part of the FTSE 100, SSE was previously known as Scottish and Southern Energy. It is a multinational energy company headquartered in Perth, Scotland and operates across the United Kingdom and Ireland.
SSE develops, owns and operates low-carbon infrastructure designed to support the zero-carbon transition. This includes onshore and offshore wind, hydropower, electricity transmission and distribution grids, and efficient gas-fired generation. And the company is a large generator of renewable electricity and one of the largest electricity network companies in the UK.
However, in 2025, management decided to adjust its ambitious investment strategy moving forward, cutting its planned spending by £3bn to approximately £17.5bn. This decision was primarily influenced by planning delays and increased costs in renewable energy projects as a result of shifting energy policies worldwide.
Despite these setbacks, the company remains a significant renewable energy business within Britain, employing around 14,000 workers. Most recently, it successfully delivered 208 megawatts of onshore wind capacity in Scotland, supporting the UK government’s goal to make the energy grid carbon-neutral by 2030.
Greencoat UK Wind
Greencoat UK Wind is a listed renewable infrastructure fund, invested in operating UK wind farms, which are generating income. The fund is a constituent of the FTSE 250. It offers an attractive, sustainable dividend, which increases in line with RPI, while preserving capital in real terms.
In the face of rising interest rates and falling energy prices, Greencoat has experienced higher levels of financial pressure in recent years. However, management has not sat idle. And in 2025, the company continues to optimise its portfolio, acquiring new assets while disposing of older, underperforming ones. And subsequently, the firm has reiterated new targets to resume increases to shareholder payouts as of 2026.
Greencoat UK Wind is currently invested in 49 wind farms, both onshore and offshore. Its net generating capacity is 2,007MW, and its assets have produced over 29.0TWh of power since the firm had its IPO in March 2013.
ITM Power
ITM Power’s aim is to help the world reach net-zero through the power of green hydrogen. It is the first hydrogen-related company to be listed on the London Stock Exchange.
For over 20 years, ITM Power has designed and manufactured electrolyser systems that generate green hydrogen based on proton exchange membrane (PEM) technology. Its systems use just renewable energy and water, with oxygen and water vapour the only by-products.
The company has made significant strides in 2025. Apart from being selected as a technology provider for a 50-megawatt green hydrogen project in Europe, it has also secured new contracts to supply electrolysis modules for Uniper. Combined, the firm is expecting to deliver double-digit revenue growth while simultaneously turning cash positive.
It also works with partners – including Linde, Shell, Snam, Hyundai, and Honda – to scale its impact, industrial reach, and market penetration.
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Ceres Power Holdings
Ceres Power Holdings’ main purpose is to help sustain a clean, green planet by ensuring there is clean energy everywhere in the world.
The company came out of Imperial College in London, where Professor Brian Steele invented the SteelCell. Since then, Ceres has been working to perfect this technology for almost 20 years, positioning itself as a global leader in fuel cells and electrochemistry expertise.
A fuel cell is a power generation unit that produces, without any burning, an electric current from a chemical reaction. Fuel cell generation results in energy with low or zero CO2 produced, as well as clean air with no particulates, SOx or NOx emissions.
Ceres wants to bring cleaner and cheaper energy to businesses, homes and vehicles. To do this, the company works with global partners to embed its technology in mass-market energy products.
The firm did run into a bit of trouble in 2025 when its partnership with Bosch was terminated in February due to a strategic restructuring. This has unsurprisingly caused significant share price volatility. However, the firm has still made some notable milestones since, particularly in India, where its demonstrator unit achieved its first hydrogen production.
AFC Energy Plc
Surrey-based AFC Energy is a developer of alkaline fuel cells which use hydrogen for electricity production. It does this to generate clean energy, offering strong performance and low operating costs as part of global efforts to decarbonise the industry.
Its Hydrogen Power (H-Power) systems use a patented design aimed at ensuring efficiency, robust quality and economic operation. It is also free of pollutants and greenhouse gases.
The company aims to help all customers achieve a net zero carbon future through continuous development and improvement of its product base.
It has undergone a transformation in recent years, which includes the launch of a strategic partnership with ABB in December 2020. This was designed to create the next generation of high-power electric vehicle (EV) charging solutions for grid-constrained locations across the globe. This was further extended in April 2021 when ABB made a strategic investment in AFC Energy and entered into a new development agreement.
In 2025, the firm continues to focus on hydrogen power generation with its H-Power system. Under the new leadership of John Wilson as CEO, the firm is seeking to expand its portfolio of hydrogen solutions, starting with the recent launch of its new Hy-5 containerised, portable cracking module with a production capacity of 500kg per day. This opens the door to new market opportunities, such as hydrogen fuel production for refuelling stations and off-grid power generation for recharging electric vehicles.
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Investing in US renewable energy stocks
You may also want to consider investing in US renewable energy stocks. A lot of platforms in the United Kingdom allow you to invest in US companies.
Here are some US renewable energy stocks to consider:
- Tesla (NASDAQ:TSLA)
- Enphase (NASDAQ:ENPH)
- NextEra Energy (NYSE:NEE)
- Clearway Energy (NYSE:CWEN)
- Brookfield Renewable (NYSE:BEP)
- First Solar (NASDAQ:FSLR)
Are renewable energy stocks right for you?
Clean energy stocks will not be right for everyone. Whether they are right for you will depend on the make up of your portfolio, your risk appetite, and your financial goals.
If you care about sustainability, climate change, and want to have a positive impact on the planet while hopefully making money too, then investing in renewable energy stocks may be right for you.
These are large companies with growth potential. However, the value of any company can go down or up. Make sure you do your own independent research before making any investment, including renewable energy stocks.
And if you want to gain exposure to the energy sector but don’t want to invest in individual energy stocks, check out the best UK energy ETFs.
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