We recently published a list of 12 Best Renewable Energy Stocks to Buy in 2025. In this article, we are going to take a look at where Enphase Energy, Inc. (NASDAQ:ENPH) stands against other best renewable energy stocks to buy in 2025.

Governments are focused on clean energy worldwide. In 2024, a record 30 GW of utility-scale solar power to the U.S. grid was produced, accounting for almost 61% of capacity additions last year. The expansion of green energy holds much promise for clean energy stocks in 2025 and ahead.

READ ALSO: 10 Best Clean Energy Stocks to Buy According to Billionaires

President Trump’s focus on domestic energy production is expected to boost local production. Solar and storage energy, which will account for 84% of new grid capacity in 2024, are major sources of realizing this vision. According to the U.S. Energy Information and Administration (EIA), around 63 GW of new utility-scale electric generating capacity is expected to be added to the U.S. power grid in 2025. This will mark a 30% growth from 2024. Solar and battery storage combined account for 81% of the expected total capacity additions, with solar driving 50% of the growth.

In 2025, the buildout of big solar and battery plants is estimated to reach an all-time high. The wind projects will also add to the new power capacity in renewable and battery energy sources, which are expected to reach 93%. EIA expects 7.7 GW of wind energy capacity to be added to the U.S. grid in 2025.

“Renewables will be the biggest beneficiary of growing electricity demand because they are the cheapest option, and [electricity buyers] will always absorb as much of the cheapest source of power before turning to more expensive forms of power,” Bruce Flatt, Brookfield’s chief executive, told Wall Street analysts.

According to IEA, renewable energy consumption in the power, transport, and heat sectors is expected to rise by over 60% from 2024 to 2030. This reflects the share of renewables in final energy consumption to reach almost 20% by 2030. The growing electricity demand will also drive the production of renewable energy. Electricity generation from clean sources makes up almost three-quarters of the overall growth, driven by policy changes in more than 130 countries.

Our Methodology

We used the Finviz screener and renewable energy ETFs to shortlist renewable energy companies with a market capitalization of more than $500 million. We then looked for renewable stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey’s database, updated as of Q4 2024. Finally, the 12 best renewable energy stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them.

Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A solar panel array stretched across a large open field, its glimmering panels reflecting the sun.

Enphase Energy, Inc. (NASDAQ:ENPH)

No. of Hedge Fund Holders: 39

Enphase Energy, Inc. (NASDAQ:ENPH) is one of the largest global energy technology companies famous for solar microinverter systems. It also offers energy storage solutions and monitoring software designed for residential and commercial solar installations. The company’s systems have been deployed in over 160 countries, and it has shipped nearly 80 million microinverters around the world.

Enphase Energy, Inc. (NASDAQ:ENPH) is expanding its European presence. Recently, the company launched its most powerful battery system in Poland. Enphase’s IQ Battery 5P with FlexPhase is an energy system with a storage capacity of 5 kWh and can be configured up to 70 kWh. This battery system can support diverse home energy needs. The company earlier launched FlexPhase batteries in Germany, Austria, Switzerland, and Luxembourg. These launches were followed by Enphase’s announcement of production shipments of its latest EV charger, the IQ EV Charger 2, in 14 European markets last month.

On April 3, Sean Milligan from Jefferies downgraded the price target on ENPH shares from $54 to $44 and kept an Underperform rating on the stock. Whereas, Wells Fargo maintained an Overweight rating on ENPH with a price target of $75 per share. The analysts share mixed views on Enphase due to the U.S.’s strict policy on the renewable industry, while the company’s growing presence in Europe creates hope for growth.

Overall, ENPH ranks 9th on our list of best renewable energy stocks to buy in 2025. While we acknowledge the potential of ENPH to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than ENPH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.