ASX trading
Key takeaways
- Compare brokers using Finder’s platform tool to find one that offers access to both ASX and international renewable energy stocks.
- Check whether your chosen investments include genuine renewable or ESG holdings before committing funds.
- Diversify with ETFs or micro-investing apps if you prefer indirect exposure to the renewable energy sector with lower upfront costs.
Renewable energy stocks have been investors' favourites in recent years.
As the world moves towards sustainability, renewable energy is becoming a major priority of governments and businesses around the world. For countries such as Australia, China and India where electricity is largely generated from high carbon-emitting coal, many see the future of renewable energy as critical.
If you're looking to invest in companies that support the growth of sustainable energy sources, you can start here.
How do I buy renewable energy stocks?
- Choose a share trading platform. If you're a beginner, our table below can help you choose.
- Open your account. You'll need your ID, bank details and tax file number (TFN).
- Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
- Find the shares you want to buy. Search the platform and buy your shares. It's that simple.
Our top picks for trading platforms
Copy trading
Beginners
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For our top picks, we compared our Finder partners using a proprietary algorithm. We update the list regularly. Keep in mind that our top picks may not be the best for your individual circumstances and we encourage you to compare for yourself. Read our full methodology to find out more.
Finder survey: How many Australians take ethical/ESG considerations into account when investing?
| Response | |
|---|---|
| Never | 53.49% |
| Sometimes | 36.45% |
| Yes always | 10.06% |
Why invest in renewable energy?
In the last century, we've come to rely on fossil fuels to create electricity, power our vehicles and drive manufacturing. But overwhelming evidence says the extraction and use of coal, oil and gas are causing irreversible environmental damage and global warming. Fossil fuels are also finite – over time, we'll be forced to rely on alternative energy sources regardless of our environmental views. This is driving investors towards renewable energy stocks.
This creates a big opportunity as economies look to decarbonise. According to McKinsey, net zero will cost the world $9.2 trillion every year. And that spending by big businesses and governments is creating opportunities for investors. After all, that money has to go somewhere and into something. So investors can purchase shares in the companies helping to create a net-zero planet.
Adding to the opportunity is simply population growth. Studies suggest the world's population is expected to reach almost 10 billion by 2050. Both environmental constraints and limited fuel and water supply (used in mining) will increase our need for renewable and clean energy sources. For these reasons, investing in renewable energy makes both environmental and money sense.
How do I invest in renewable energy?
Several categories of renewable energy stocks include solar power, wind power, biomass, geothermal and hydroelectric. Some include nuclear energy to that list despite its controversy. In some cases, you can even invest in the metals that will be used in the net-zero transition.
Below is a list of ways that you can invest in companies that support renewable energy.
- ASX renewable energy stocks. You can buy shares in renewable energy companies listed on the Australian share market.
- International stocks. Some of the biggest renewable energy companies are listed on stock exchanges in overseas markets such as the US or Canada. Access these through a broker that offers international shares.
- Sustainability ETFs. ETFs contain a bundle of stocks, usually hundreds, and these often track an index of stocks. The renewables sector is still very small in Australia so there are few options to date for renewable energy ETFs on the ASX. There are many to choose from on global exchanges.
- Micro-invest. Some investment apps such as Raiz and CommSec Pocket offer sustainability funds that may support renewable energy companies. However, keep an eye out for what you actually own to make sure it aligns with your personal values.
- Superannuation. You might also be able to invest in renewable energy through your superannuation, depending on what options it offers. Most of the big funds will have an ethical option that contains some renewable equities in it while some smaller funds are exclusively related to environmental, social and governance (ESG).
Compare share trading platforms to buy stocks
Looking for other options? Check out these similar products.
How we picked theseFinder Score for share trading platforms
We've scored over 30 share trading platforms assessing them for their core features, fees, customer experience and accessibility. Our experts give each platform a score out of 10.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Frequently asked questions
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Some of the best renewable energy stocks to consider in Australia include companies like Fortescue Future Industries, AGL Energy and Infigen Energy. These companies are involved in various renewable sectors such as wind, solar and hydrogen energy. As the sector grows, these stocks may offer long-term potential for investors.
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Yes, investing in renewable energy is considered promising due to the increasing global shift towards sustainability. Governments and corporations are ramping up efforts to transition to cleaner energy and the sector is expected to see significant growth in the coming years. However, as with any investment, it is important to consider market volatility and long-term potential.
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Globally, solar energy is one of the fastest-growing renewable energy markets, driven by decreasing costs and increased government support. In Australia, the solar industry is expanding rapidly, with rooftop solar installations and large-scale solar farms contributing significantly to the nation's energy grid. Wind energy is also growing steadily, offering further diversification in renewable energy investments.
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If you're a sole trader, you can use a personal bank account to make and receive payments. But it is advisable to use a dedicated bank account to keep personal and business finances separate, so you can make sense of your deductions and income easily at tax time.
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Like any investment, renewable energy stocks and funds carry risk. Factors such as government policy changes, commodity prices and technological developments can all affect returns. However, as the sector continues to mature, many companies are becoming more established and profitable, helping to reduce overall risk.
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You can invest directly in renewable energy companies listed on the ASX, global clean energy ETFs, managed funds with a sustainable focus or via crowdfunding platforms that finance clean energy projects. Each option offers different levels of risk, return and involvement.
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Yes. Many international renewable energy companies are listed on overseas exchanges such as the NYSE. You can access these through Australian brokers that offer global market trading, or via international ETFs that bundle multiple renewable energy stocks.
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Government incentives, subsidies and emissions targets can influence renewable energy company performance. Supportive policies can drive growth, while changes or reductions in subsidies may impact profitability. It’s worth keeping an eye on policy trends both in Australia and globally.
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Renewable energy ETFs provide instant diversification by spreading your investment across several companies within the sector. This can lower risk compared to buying individual stocks, making them a popular choice for newer investors looking for exposure to clean energy.
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Consider your investment goals, risk tolerance, time horizon and personal values. Review the company’s financials, project pipeline and market position, as well as broader factors like energy demand and government regulation.
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Yes. Many superannuation funds now offer sustainable or ethical investment options that include allocations to renewable energy assets. Check with your fund provider or switch to one that aligns with your sustainability goals.
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The transition to net zero, declining technology costs and increased corporate and government commitments to sustainability are all fuelling long‑term growth. While short‑term volatility is possible, demand for clean energy is expected to continue increasing over the coming decades.
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Performance varies over time. Traditional energy stocks often benefit from commodity pricing cycles, while renewable companies rely more on innovation, policy support and project pipelines. Over the long term, renewables have been gaining ground as costs fall and global demand strengthens.
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You can monitor performance through your trading platform, financial news sources and market indices that track renewable energy sectors, such as the S&P Global Clean Energy Index. Many brokers also provide analytical tools to compare performance against benchmarks.
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Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.
Kylie Purcell is an experienced investments analyst and finance journalist with over a decade of expertise in a wide range of financial products, including online trading platforms, robo-advisors, stocks, ETFs and cryptocurrencies. She is a sought-after commentator and regularly shares her insights on the AFR, Yahoo Finance, The Motley Fool, SBS and News.com.au. Kylie hosts the Investment Finder video series and actively contributes to the investment community as a judge and panellist. She holds a Master of Arts in International Journalism, a Graduate Diploma in Economics, and ASIC-recognised certifications in securities and managed investments. See full bio
- Investment strategies
- Financial platforms
- Stockbrokers
- Robo advisors
- Exchange traded funds (ETFs)
- Ethical investing
- ASX stocks
- Stock and forex markets
Cameron Micallef is a personal finance journalist with eight years of experience, specialising in investing, property and household bills. He has written for Smart Property Investment, nestegg and Investor Daily. Cameron holds a Bachelor’s degree in Communication and Media Studies and Commerce, as well as a Tier 1 Generic Knowledge certification (RG146), ensuring compliance with ASIC standards. See full bio
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