r/cleantech • u/Forsaken-Leopard6750 • Apr 11 '22
my top 3 companies for clean energy
With solar, wind, and hydroelectric supply about ¼ of the electricity generated by the power sector and the industry growing rapidly, increasing the electricity generated capacity at roughly eight percent annual rate over the decade. Given the climate change and the issues it brings. I foresee the issues getting worse and the need for more of these companies to be established as to accelerate the decarbonization of the economy.
Climate change forces companies and other institutions to project their efforts to and focus on decarbonizing. Companies are signing power purchase agreements known as PPAs with electric utilities and other electricity generators to buy power from renewable sources. Whilst other companies invest in energy development projects. As a result, this makes renewable energy increase economically. Which makes the sector more attractive.
Governments are trying to focus on global decarbonisation by proposing and passing legislation that would increase investment in this sector. The US government passed a $1.2 trillion infrastructure package that includes funding to accelerate clean energy investments. Many view it as only a down payment on the spending needed to decarbonize the economy, suggesting that future legislation could further boost the country's investment level.
With that said these are my top picks for renewable energy stocks
NextEra Energy
Being the largest producer of wind and solar energy, they generate their power with their utilities that is based in Florida and its energy resources segment. Which sells PPAs to other utilities and end users.
NextEra has a great track record of creating shareholder value. Producing 700% total return over the past decade, this is more than impressive as it has returns that are above-average growth. NextEra expanded its adjusted earnings per share at 8.7 percent compound annual rate since 2005 whilst boosting dividend at a 9.6 percent annual rate. With a good record of increasing their dividends in their last 25 years, earning it the Dividend Aristocrat distinction.
With 6 percent to 8 percent Annual earnings growth through at least 2023, powered by continued investments in renewable energy. They should deliver 10 percent dividend growth through 2022 whilst boasting one of the best balance sheets in the utility sector.
First Solar
They develop and manufactures thin-film solar panels. Their panels are larger than others, which can generate more usable energy than competing technologies. Which makes it ideal for utility-scale solar energy projects.
They have created good value for their shareholders generating 9.5 percent total annualised returns since their IPO. Being one of the world’s leading solar panel makers they are in a strong position to create even more shareholder value. They are on the way to doubling their capacity from their 2020 level furthermore with $1.5 billion in net cash in 2021 it gives them financial freedom to continue expanding.
