Alan Kennedy
2024-05-28 08:10:40
www.visualcapitalist.com
The Growth of Clean Energy Stocks
Over the last few years, energy investment trends have shifted from fossil fuels to renewable and sustainable energy sources. Long-term energy investors now see significant returns from clean energy stocks, especially compared to those invested in fossil fuels alone.
For this graphic, Visual Capitalist has collaborated with EnergyX to examine the rise of clean energy stocks and gain a deeper understanding of the factors driving this growth.
Sustainable Energy Stock Performance
In 2023, the IEA reported that 62% of all energy investment went toward sustainable sources. As the world embraces sustainable energy and technologies like EVs, it’s no surprise that clean energy companies provide solid returns for their investors over long periods.
Taking the top-five clean energy stocks by market cap (as of April 2024) and charting their five-year cumulative returns, it is clear that investments in clean energy are growing:
| Company | Price: 01/04/2019 | Price: 12/29/2024 | 5-Year-Return % |
|---|---|---|---|
| First Solar, Inc. | $46.32 | $172.28 | 272% |
| Enphase Energy, Inc. | $5.08 | $132.14 | 2,501% |
| Consolidated Edison, Inc. | $76.55 | $90.97 | 19% |
| NextEra Energy, Inc. | $43.13 | $60.74 | 41% |
| Brookfield Renewable Partners | $14.78 | $26.28 | 78% |
But how does this compare to the performance of fossil fuel stocks?
When comparing the performance of the S&P Global Oil Index and the S&P Clean Energy Index between 2019 and 2023, we see that the former returned 15%, whereas the latter returned an impressive 41%. This trend demonstrates the potential for clean energy stocks to yield significant returns on an industry level, sparking optimism and excitement for potential investors.
A Shift In Returns
With global investment trends moving away from traditional, non-sustainable sources, the companies that could shape the energy transition provide investors with alternative opportunities and avenues for growth.
One such company is EnergyX. The lithium technology company has patented a groundbreaking technology that can improve lithium extraction rates by an incredible 300%, and its stock price has grown tenfold since its first offering in 2021.
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