2 of the best renewable energy stocks to buy right now

I’m on the hunt for the best renewable energy stocks to buy today. Here are two UK shares near the top of my shopping list.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

It’s becoming increasingly difficult to open a newspaper without hearing something about the worsening climate crisis. In the past seven days alone, we’ve heard about floods sweeping through China and Germany and wildfires erupting in Siberia. And, closer to home, the Met Office issued an extreme heat warning for the first time ever last Monday.

Against this backdrop, it’s no surprise that responsible investing — Environmental, Social and Governance (ESG) — is booming. According to M&G’s Pru brand, some 46% of its clients have shown an interest in ESG investing, with one in two saying their appetite for sustainable investments (such as renewable energy stocks) has grown since the Covid-19 outbreak.

Describing the “dramatic” growth in the popularity of ESG investments, M&G said the trend “has largely been fuelled by the climate emergency, growing scrutiny of company practices”. It also noted that “some governments [were] adopting carrot and stick policies to change consumers’ and companies’ behaviours in line with their commitments to the international community”.

Should you invest £1,000 in Invinity Energy Systems right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Invinity Energy Systems made the list?

See the 6 stocks

The FTSE 100 firm also said the pandemic “has prompted a re-evaluation of ‘what matters most’.” This has prompted a change in investors’ financial priorities and has certainly boosted my interest in responsible investing.

5.4% dividend yields!

There are a number of top renewable energy stocks I’m looking to buy to ride the ESG train. One of these is Greencoat UK Wind (LSE: UKW), an investor in onshore and offshore wind farms across the country. The FTSE 250 company has a strong track record of acquisitions and its appetite for splashing the cash remains undimmed. Kepler Trust Intelligence notes that Greencoat UK Wind has “a significant pipeline of assets that it has committed to buy”.

This UK share will play a critical role in helping the government reach its goal of carbon neutrality by 2050. And despite the threat that operating in a highly-regulated environment brings, I think stock investors like me could do well with it in the process.

One final reason I love Greencoat UK Wind — today, this renewable energy stock boasts a 5.4% forward dividend yield.

Hand holding pound notes

Another top renewable energy stock I’d buy

Invinity Energy Systems (LSE: IES) isn’t involved in the business of producing green energy. But its role as a manufacturer of vanadium flow batteries still makes it an exciting renewable energy stock to buy.

Energy storage systems like Invinity’s are essential in the production of wind, solar and tidal energy. They can capture generated energy and distribute it when the wind stops blowing and the sun stops shining. This ensures a constant supply of power.

Lithium-ion batteries are hugely popular for this purpose, but vanadium-based ones are quickly growing in popularity. This is due to their superior durability, greater safety profile, and better cost effectiveness over the life of a project. This explains why Invinity’s commercial opportunity pipeline increased an impressive 30% between early March and late May. That said, the vanadium flow battery market is likely to face intense competition from iron flow batteries going forward.

We think earning passive income has never been easier

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Greencoat UK Wind. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

These FTSE 250 shares could soar over the next year

FTSE 250 stocks could surge with more rate cuts looming. History tells us that stocks tend to perform extremely well…

Read more »

Man smiling and working on laptop
Investing Articles

2 high-yield dividend stocks to consider for a £2k passive income in 2025

With a lump sum investment, these UK dividend stocks are worth considering for a brilliant second income this year and…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

These FTSE stocks could surge in 2025

FTSE stocks have broadly disappointed investors in recent years. However, with interest rates falling, some stocks may receive a much-needed…

Read more »

Investing Articles

2 New Year resolutions for ISA investors to consider!

Looking to put the fizz back into ISA investing? These top tips could help turbocharge the returns UK investors make…

Read more »

Close-up of British bank notes
Investing Articles

Fancy supercharging your passive income? Here are 2 cheap FTSE 250 shares to consider!

The dividend yields on these FTSE 250 shares are MORE THAN DOUBLE the index average! Here's why they could be…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

Here’s how a stock market beginner could get going in 2025 with a spare £300!

Our writer considers some approaches and principles he thinks might help someone with a few hundred pounds spare to start…

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

Here’s how I’ll aim for a million in 2025 and beyond buying just a few shares!

Our writer thinks that by investing regularly in proven blue-chip companies, he can aim for a million in coming decades.…

Read more »

Investing Articles

I asked ChatGPT to name the best UK growth stock and it picked this red-hot blue-chip

Harvey Jones asked generative artificial intelligence to name the very best growth stock on the entire FTSE 100. He wasn't…

Read more »