In recent years, investment trends have increasingly favored renewable and sustainable energy sources over fossil fuels. Long-term investors in clean energy stocks are now seeing substantial returns, far outpacing those who remain focused on fossil fuels.
For this analysis, Visual Capitalist partnered with EnergyX to explore the rise of clean energy stocks and the key factors driving their growth.
Performance of Sustainable Energy Stocks
According to the IEA, 62% of all energy investments in 2023 were directed toward sustainable sources. With the global shift towards sustainable energy and technologies such as electric vehicles (EVs), clean energy companies are delivering impressive long-term returns for their investors.
Here’s a look at the five-year cumulative returns of the top-five clean energy stocks by market cap as of April 2024:
| 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% |
Comparing Clean Energy and Fossil Fuel Stocks
When comparing the S&P Global Oil Index and the S&P Clean Energy Index from 2019 to 2023, the S&P Global Oil Index returned 15%, while the S&P Clean Energy Index delivered a remarkable 41%. This stark contrast highlights the potential of clean energy stocks to provide significant returns, generating optimism among investors.
A Shift in Investment Returns
As global investment trends increasingly move away from traditional fossil fuels, companies at the forefront of the energy transition present investors with new growth opportunities.
One such company is EnergyX. Known for its groundbreaking lithium extraction technology, which enhances extraction rates by up to 300%, EnergyX has seen its stock price increase tenfold since its initial offering in 2021. This success exemplifies the lucrative potential of investing in innovative clean energy solutions.
