In the short time President Joe Biden has been in office, he has made it clear that his administration will be pushing to drum up activity in the renewable energy and cleantech space throughout the country. He plans to make the electric grid carbon-free by 2035 as our “future lies in renewable energy.”
Numerous renewable energy stocks have already seen their share prices react positively to this, as one would expect, but the real gains will be made over the coming months and years. So, there’s undoubtedly potential for great returns for shrewd investors who are prepared to capitalize on this opportunity.
Read on to discover three great renewable energy stocks that you should consider investing in to reap gains under the Biden administration.
Our Top Picks For Renewable Energy Investing
Orbital Energy Group
Orbital Energy Group is active in several different fields of renewable energy, including solar power, in addition to some more traditional areas of the energy sector. This makes them a very well-diversified energy stock to invest in, and they are well-positioned to benefit from the Biden administration’s stance on green energy.
Many analysts and investment firms are bullish on this particular stock, and the firm is already in a good position with regards to profitability and cash flow.
In addition to its aforementioned projects, the company will be decommissioning a number of coal-powered energy plants across the US and working to convert them into large, high-capacity solar energy farms.
“These utility-scale projects, along with planned follow-on developments will enhance our presence in the renewable/alternative energy marketplace well into 2021 and beyond,” CEO Jim O’Neil said, commenting on the ambitious initiative.
VivoPower International is another well-diversified cleantech stock which is quickly emerging as a favorite among opportunist and eco-conscious investors. The company’s portfolio consists of solar energy farms, developing technology for use in electric vehicles (EVs) and broader battery tech.
VivoPower recently inked a $250 million deal with the Australia-based GB Auto Group, making the latter the exclusive distributor of VivoPower’s Tembo Toyota EV conversion kits in Australia.
Other company-specific developments and its 2020 performance – with it posting a record annual revenue of $48.7 million – have already propped up VivoPower International’s stock price, and it’s definitely one to watch over the coming months and years.
Last but not the least, Aemetis is an advanced renewable fuels and biochemicals development company, based out of California. Its various projects are centered around reducing the Earth’s carbon footprint, and its Carbon Zero biofuel production process recently received a grant from the government worth $16.8 million.
Furthermore, Aemetis replaces traditional petroleum-based products. It has indicated that it believes its renewable fuels could be suitable for use in hybrid electric vehicles – another rapidly growing market.
The company’s share price has enjoyed a very strong start to 2021, with it jumping from around $2.59 at year-end 2020 to over $7.65 as of mid-February.
A Quick Summary
- Joe Biden’s victory in the presidential election is a major boost to renewable energy and broader cleantech space.
- The industry is expecting significant investment, both at the federal, state and local level, and grants designed to encourage and incentivize research should also become more readily available.
- Our three top picks for cleantech companies to invest in are Orbital Energy Group, VivoPower International, and Aemetis.
- All of our top picks are well diversified and are in a good position to benefit from the Biden administration’s stance on clean energy.
- Investing in all three is a good way to further hedge your bets, though it’s also advisable to invest in other non-renewable energy stocks and even other asset classes, such as commodities, bonds and cryptocurrencies, to further diversify your portfolio.