An Expert Guide on the Best Renewable Energy Stocks in Canada

Recently, the world has been fumbling to switch power sources due to climate change concerns. Fortunately, world leaders have realized the damage of carbon-based fossil fuels and desperately hope to reverse these harmful effects. 

Thus, more and more Canadians invest in energy stocks in Canada that come from renewable sources. 

We’ve looked into the best renewable energy stocks found in Canada to bring you a detailed review and hopefully broaden your interest in the topic. We assure you this won’t be a waste of your energy!

7 Best Renewable Energy Stocks 

Luckily, Canada’s renewable energy companies are some of the best in the world. In the list below, we’ve compiled the best green energy stocks in Canada to help you choose where to invest.

1. Algonquin Power & Utilities Corp

Founded: 1988

Gross revenue for 2021: $2.11 billion

Algonquin Power & Utilities Corp is one of the leading Canadian renewable energy companies. With this said, the company is committed to providing reliable, safe, and inexpensive natural gas, electricity generation, and water. 

At the time of writing, Algonquin’s stock price sits at $17.74. Unfortunately, according to their financial statements, the company saw a market value decrease of 19,29% in 2021. Additionally, their clean energy stocks show significant dips, followed by slight increases in value. 

So, should you buy their shares?

Considering the different factors we covered, our verdict is yes, as they’re one of the lowest stock prices on this list. Moreover, as market values are relatively fluid, your stocks might be worth much more down the line.

2. TransAlta Renewables

Founded: 2013

Gross revenue for 2021: N/A ($332 million in Q3)

If you’re on the hunt to invest in some Canadian green energy stocks, you’re bound to come across TransAlta Renewables. This company immensely contributes to the renewable energy sector and focuses on advancing cleaner energy technologies for the future. Additionally, they have facilities that generate power from natural gas, wind, and water.

As of 17th February 2022, TransAlta’s stock value was $16.78. Regarding market value, financial statements show a relatively steady decline of 20,29% since August of 2021. 

Since our current economy sees daily fluctuations, TransAlta’s clean energy stocks should not be overlooked. Moreover, the company’s plans to fund $3 billion in renewable energy projects should bring about high revenues that support increasing dividends.

3. Northland Power

Founded: 1987

Gross revenue for 2021: N/A ($79.78 million in Q3)

One of Canada’s best renewable energy companies is none other than Northland Power. This firm has been developing green power facilities since 1987 and currently owns over $10 billion power generating assets

Currently, analysts gauge Northland Power’s stocks at $36.55. During the course of 2021, the company’s stock value has been steadily decreasing, as share prices were $48.72 on the 17th of February 2021. Therefore, market value has decreased 24,98% since then. 

So, if you’re considering investing in clean energy stocks, consider Northland Power, as the company has some of the best solar energy stocks in Canada. Additionally, share values are expected to grow exponentially, which would give investors a real bang for their buck.

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4. Innergex Renewable Energy

Founded:1990

Gross revenue for 2021: N/A ($184.56 million in Q3)

Innergex Renewable Energy has been on the frontlines in the fight against climate change by possessing a diverse portfolio, including hydroelectric facilities, wind farms, and solar farms. What’s more, the company has developed its own sustainable business model that focuses on the people and the planet. 

Moreover, Innergex’s shares have kept up with the popular energy stocks in Canada, with a price of $17,61 per stock. Financial reports have shown an overall steadiness trend, with mild dips and surges in market value. However, during 2021, the company witnessed a 34,32% decrease in stock prices since the 17th of February last year, when values sat at $26.81.

So what’s the verdict?

Business analysts suggest investors should snatch up Innergex’s stocks because earnings are forecast to grow 104,36% per year. That sounds like a steal!

5. Brookfield Renewable Partners

Founded: 2011

Fross revenue for 2021: $3.95 billion

Investors looking for Canadian clean energy stocks should seriously consider Brookfield Renewable Partner’s shares. The company owns wind, solar, hydroelectric, and storage facilities in different countries and a diverse portfolio of renewable power assets. Over the last five years, Brookfield Renewables’ share price is up roughly 200%.

Brookfield’s stock prices sit at $43.35 at the time of writing. Although its share values are among the highest on this list, they have been experiencing a steady decline since February 2021. Therefore, market value has decreased by 24,74% so far. 

Considering the factors above, we can confidently say that Brookfield’s shares are some of the top renewable energy stocks in Canada. Moreover, analysts deem the company well-positioned in a long-term global shift in the energy sector, leading to substantial revenue growth from solar and wind power.

6. Enbridge

Founded: 1949

Gross revenue for 2021: $35.03 billion 

Up next is another noteworthy energy company in Canada, Enbridge. This firm’s on the path to becoming the leading energy delivering company in North America, with the continent’s third-largest natural gas utility by consumer count. Thanks to Enbridge’s early investment in clean energy, it has a diverse and growing wind portfolio.  

Enbridge’s stock value was $52.75 when we were writing this article. Moreover, the company seems to be going against the trend of declining market value, as its shares saw a steady increase in 2021 and a growth of 20,68% during the year. 

According to analysts, Enbridge offers some of the most reliable dividends within the energy sector. What’s more, these shares are forecast to grow in the coming years and provide significant investment returns. Plus, with the highest price on our list, it’s evident demand is high. So, get on it!

7. Boralex

Founded: 1990

Gross revenue for 2021: N/A ($7 million in Q3)

To close off our list, we’d like to talk a bit about Boralex. This company has been providing affordable and accessible renewable energy for over 30 years. Their portfolio is comprised of multiple wind, solar, and storage projects.

As an established company, it offers some of the best energy stocks in Canada. As of February 2022, Boralex’s stocks are $32.89. Unfortunately, stock values have been steadily declining since May of 2021, when they were $43.56. Accordingly, market value decreased by 27,25% in 2021. 

Analysts predict that Boralex will have a prosperous future ahead of it. Investors are looking at a profitable opportunity with company earnings expected to grow by 51,43% per year. And, with only around $32 per stock, you won’t be paying through the nose for it! 

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Renewable Energy Stocks 101

Before we dive deeper into the topic of clean energy stocks, let’s brush up on our knowledge of what they are. 

Also known as the alternative energy sector, these companies generate, distribute and sell renewable energy and other related products. Therefore, investors can purchase these services and take part in the company’s profits. 

Apart from this, investors can choose the type of stock they want to buy. For example, you can pick between solar, wind, geothermal, and hydroelectric sources. Recently, solar stocks in Canada have been booming, with investors flocking to buy more shares. 

Fortunately, clean energy stocks are inexpensive. With stock prices sitting in ranges between $16 and $52, there seems to be something for everyone. Whether you’re looking to go all out or just dip your toes in this exciting investment opportunity, you’re bound to find the best stock for you. 

What is Green Tech?

Green Tech is an umbrella term that encompasses all types of environmentally-friendly technology. To determine whether a technological product deserves the epithet “green,” environmentalists look at its production process or supply chain. 

Even though the green-tech market is still relatively young, investors have shown more interest due to the increasing awareness about the harm fossil fuels inflict on our planet. Therefore, business people have been investing in green energy stocks more often, as many wish to reduce their environmental footprint. 

Conclusion

That’s all, folks!

We hope you learned all you needed about investing in energy stocks in Canada, and you’re ready to put your money down for a great cause. Before settling on a stock, think about which company shares your values, and pride yourself on being a new fighter against climate change!

FAQ

What are the best Canadian renewable energy stocks?

The best Canadian energy stock can look different for everyone, as there is no one-size-fits-all. To determine which stocks you should invest in, consider how much money you’re willing to put down and which company shares your values.

Is it worth investing in renewable energy?

According to business analysts, renewable energy investments can become quite lucrative. Moreover, green energy stocks are expected to rise exponentially over the coming years. 

What’s the best renewable energy stock?

The best renewable energy stock depends on many different factors and the values of the individual investor. When looking to invest in energy stocks, consider what’s important to you and weigh the offers accordingly. 

 

ABOUT AUTHOR

Despite her formal background in linguistics, Maja has always been fascinated by the world of finance. She has spent years and years analyzing the market, including trades, investments, pitfalls to avoid as well as the stock exchange. As of recent, she has been studying some non-mainstream stocks in Canada. When I’m not immersed in numbers, I like to spend time with my dog and plan my next trip.

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