Look, I’ve been riding the clean energy rollercoaster since before it was mainstream, back when solar was for hippies and wind was just something that messed up your golf game. I’ve made fortunes, lost fortunes, and learned some hard lessons about timing this sector.
September 2025 feels different. The Federal Reserve is expected to resume rate cuts, which should boost these capital-intensive plays. Clean energy ETFs are finally showing life again, and some of the best companies are trading at beaten-down valuations. If you missed the first clean energy boom, this might be your second chance.
Why Clean Energy Is Having Its Moment (Again)
Interest rates are the lifeblood of clean energy investments. Solar and wind projects require massive upfront capital, so when borrowing costs drop, these investments suddenly make sense again. The Fed is widely expected to cut rates in September, and that could be the catalyst this sector needs.
Morningstar estimates that renewable energy will account for 45% of U.S. energy generation by 2032, three times what it is now. AI data centers are consuming massive amounts of electricity, and they need clean power to meet sustainability goals. NextEra Energy just announced they’re targeting hyperscalers and data centers with new large load tariffs.
My Current Clean Energy Holdings
NextEra Energy (NEE) – The Dividend King
This is my anchor position, and for good reason. NextEra has grown its dividend for 30 years straight and maintains a 10% dividend growth forecast through 2026. They’re the world’s largest producer of wind and solar energy, with 35,052 megawatts of generating capacity.
I started accumulating NEE during the 2022 sell-off and have been adding on dips. The stock delivered strong earnings and renewable growth recently, with their backlog growing to just under 30 gigawatts. Current dividend yield is around 3%, but the growth story is what matters.
NEE isn’t just a utility, it’s a clean energy infrastructure play with regulated cash flows. When rate cuts come, this thing should fly.
First Solar (FSLR) – The American Champion
This one’s been my best performer lately, up 32.5% since my last analysis. First Solar stands out as the greatest U.S. clean energy company of our time, and here’s why: they manufacture in America, use cadmium telluride technology that doesn’t rely on Chinese supply chains, and have a 64 GW backlog.
Management is forecasting EPS in the $13-14 range for 2024, nearly doubling from last year. They raised their 2025 sales outlook and analysts have a consensus “Strong Buy” rating with a $231 price target.
Wall Street now sees First Solar as an AI stock because data centers need clean power. That’s exactly the kind of narrative shift that creates big moves.
SolarEdge Technologies (SEDG) – The Contrarian Play
This one’s been painful. SolarEdge has been down 64% from its all-time highs, but I think the worst is behind them. They just reported narrower losses and 9.1% year-over-year revenue growth in Q2 2025.
The key difference between SolarEdge and Enphase? SolarEdge trades at a forward P/S multiple of 1.42X compared to Enphase’s 3.61X. That’s a massive valuation gap for companies in the same business.
SolarEdge also announced a strategic partnership with Schaeffler to deploy EV charging infrastructure across Europe. The intersection of solar and EV charging could be huge as both markets mature.
Enphase Energy (ENPH) – The Technology Leader
Enphase has been a disaster, down 68.4% over the past year while SolarEdge gained 26.3%. But here’s why I’m not giving up: they have 48% of the U.S. inverter market, their microinverter technology is superior, and they offer a 25-year warranty vs SolarEdge’s 7 years.
The company ended Q2 2025 with 15.8% year-over-year EPS growth and $1.53 billion in cash. They’re facing headwinds from European weakness and trade policy risks, but the technology moat is real.
Sometimes the best investments come when great companies hit temporary rough patches.
The Diversification Plays
Brookfield Renewable Partners (BEP)
The renewable energy rockstars from Canada. Hydro, wind, solar, they do it all with a global footprint. What I like about BEP is their focus on hydropower, which provides reliable baseload power that solar and wind can’t match.
Dividend yield is attractive, and they’ve got the balance sheet to keep acquiring assets as the sector consolidates.
Plug Power (PLUG) – The Hydrogen Bet
This is my speculation play on hydrogen fuel cells. Plug Power has been a rollercoaster, but hydrogen could be the solution for long-haul trucking and industrial applications where batteries don’t make sense.
Small position, high risk, potentially massive reward if hydrogen takes off. Sometimes you gotta bet on the technology that sounds crazy today but could be obvious tomorrow.
What’s Changed in 2025
The solar inverter market is consolidating around two players: Enphase and SolarEdge hold 95% of global market share, with Enphase at 48% and SolarEdge at 40% in the U.S. alone. That’s oligopoly pricing power.
Trump’s tariffs on Chinese solar components are actually helping U.S. manufacturers like First Solar. The One Big Beautiful Bill Act includes stricter domestic content requirements, which creates a moat around American clean energy companies.
AI and data centers are driving electricity demand through the roof. These facilities need clean power for sustainability goals, creating a new demand source that didn’t exist a few years ago.
The Risks Nobody Talks About
Interest rates could stay higher longer than expected, which would kill project economics. Chinese solar manufacturers could flood the market with cheap panels, destroying margins for everyone else.
Policy changes could eliminate tax credits and subsidies that make many projects viable. California’s changes to net metering already hurt residential solar demand.
Most importantly, clean energy is still a cyclical business disguised as a growth story. When times get tough, these “essential” projects get delayed or cancelled.
My Strategy for the Recovery
I’ve got 40% in established utilities with clean energy exposure (NextEra), 35% in pure-play solar companies (First Solar, SolarEdge, Enphase), 15% in diversified renewable infrastructure (Brookfield), and 10% in speculation plays (Plug Power).
The key is understanding that clean energy moves in cycles. We’ve been in a down cycle since 2021, but the combination of falling rates, AI demand, and policy support could trigger the next up cycle.
The Bottom Line
Clean energy isn’t just about saving the planet anymore, it’s about meeting the massive electricity demand from AI and data centers. Companies like NextEra and First Solar are positioned to benefit from this structural shift.
Will every clean energy stock make money? Hell no. But the sector is setting up for what could be its best run since the original boom. The question isn’t whether clean energy will grow, it’s which companies will survive and thrive as the industry matures.
I’ve been early before, and early looks a lot like wrong until it doesn’t. But this time feels different. The fundamentals are stronger, the technology is proven, and the demand is real.
The Fine Print
I’m a financial advisor, but I’m not YOUR financial advisor – there’s a difference. Clean energy stocks are volatile, capital-intensive, and dependent on government policy and interest rates. Do your own research, talk to people smarter than me, and never bet money you need for rent.
But if you believe the world needs more clean electricity, these companies are building the infrastructure to deliver it.
