3 Green Energy Stocks That Will Dominate Through 2026

While sustainable energy infrastructure may not solve all of our energy problems, investors should still consider green energy stocks for the long term. Fundamentally, broader political and ideological winds are pushing toward holistic sustainability. It’s no longer just a buzzword, but increasingly a way of life. Companies must respond to real demand or be left behind.

Importantly, green energy stocks could also rise because of the urgent need for accretive infrastructure. As it stands, the U.S. power grid is struggling to keep up with a variety of advanced technologies. So we need all solutions—carbon, nuclear, renewables—to come together to solve this growing problem. Otherwise, the lights could go out when we can least afford to.

Finally, there’s big money in the space. According to Straits Research, the global renewable energy market could reach a valuation of nearly $2.45 trillion by 2032. If so, you’ll want exposure to these green energy stocks.

Ormat Technologies (ORA)

While this may not be unique, Ormat Technologies (NYSE:ORA) is certainly one of the most iconic green energy initiatives. Quite often, when people think “green,” they imagine images of solar panels and wind turbines. They’re not necessarily wrong. But Ormat approaches sustainability in a different way: through the Earth’s core.

Ground-source heat, or geothermal energy, offers a compelling potential solution to our broader energy needs. It is plentiful and everlasting. Furthermore, geothermal facilities are typically out of sight, out of mind. The same cannot be said for the ugly wind turbines that are visible in many communities.

Another advantage for Ormat is its financial resilience. Over the past four quarters, the company’s average earnings per share have reached 55.5 cents. That’s noticeably above analysts’ estimates of 47.8 cents. That result delivered an earnings surprise of almost 22%.

Experts predict revenue will reach $892.1 million in fiscal 2024. If so, that would represent a 7.6% increase, making ORA one of the green energy stocks worth considering.

Sun Run (RUN)

Based in San Francisco, California, Sun Run (NASDAQ:START) is part of the solar industry, as you might guess. It’s a large company with almost 11,000 full-time employees. Sunrun designs, develops, installs, and distributes residential solar systems in the U.S. It also sells various components, such as panels and racking. It also provides battery storage solutions.

Like other solar companies, Sunrun took a beating in 2022. Things didn’t get much better in 2023. Most of the problems were related to the broader economy and monetary policy. Inflation soared, weighing on households. And if that wasn’t enough, interest rates rose, forcing higher borrowing costs.

The numbers speak for themselves. Over the past four quarters, Sunrun has suffered an average loss per share of $1.67. Analysts, however, were predicting a loss of 28 cents. Unfortunately, the situation may not look good for fiscal 2024. However, in fiscal 2025, revenues could increase by 16.8% to $2.47 billion. Therefore, it is possible that Sunrun is preparing for a positive start to 2026.

Enphase Energy (ENPH)

Advertised as an energy technology company, Enphase Energy (NASDAQ:ENPH) and its subsidiaries design, develop, manufacture, and sell home energy solutions for the photovoltaic industry. It operates primarily in the United States, although Enphase has expanded its operations into the global arena in recent years. The company is perhaps best known for its semiconductor-based microinverter, which offers improved efficiency and capabilities.

While ENPH stock has posted some gains in 2022, it has taken stakeholders on a wild ride. Unfortunately, the past year has been a whirlwind for the company. Like other green energy stocks, Enphase has suffered from the dynamics of economic and monetary policy. Of course, runaway inflation and rising interest rates have not helped matters in the pain they have inflicted on Enphase customers.

Still, for optimists, ENPH stock is trading at 7.48X sales over the past year. Last year, that metric averaged around 8.64X. Therefore, it’s possible that Enphase could hit its previous valuation. However, that might not happen in fiscal 2024. Instead, analysts are targeting the end of fiscal 2025, when sales could jump 44.4% to $2.11 billion.

From here, Enphase could be in a strong position through 2026. It is, therefore, one green energy stock worth watching.

As of the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are the author’s own, subject to InvestorPlace.com Publication Guidelines.

On the date of publication of this article, the editor in charge did not hold (directly or indirectly) any interests in the securities referred to in this article.