The Renewables Energy Market Can Still Thrive in 2025

2025 appears to be a challenging year for renewable energy stocks and ESG initiatives as a whole. As geopolitical policy shifts and suspicions of greenwashing impact environmental, social, and governance investing, some of the industry’s brightest stocks are showing remarkable signs of resilience.

Even before the famously climate-sceptical Donald Trump returned for his second term as President of the United States, a clear pullback on ESG investing had interrupted the growth potential of sustainability-focused stocks on Wall Street.

According to the Association of Investment Companies’ annual ESG Attitudes Tracker, the number of private investors who say they consider environmental, social, and governance when investing fell for the third year in a row to 48% in 2024.

This downward trend is striking when considering that the figure stood at 66% in 2021, 60% in 2022, and 52% in 2023.

President Trump’s bid to de-incentivize ESG firms by offering expedited approvals, including ‘all Environmental approvals’, has served as an indication that sustainability initiatives will carry no special favor in the White House for the foreseeable future.

We’ve also seen more investors become wary of ‘greenwashing’, which occurs when businesses add bogus ESG claims to their brand with little tangible evidence of sustainable practices. In 2023, investor concerns over greenwashing grew by 15% while unfounded claims undermined faith in the firms that had sought to ramp up their ESG credentials.

Although these factors point to a challenging playing field for renewable energy stocks, there are clear examples of sustainability stocks that are thriving despite low ESG investor sentiment. At a time when Wall Street is struggling to keep up with volatility and growing competition in the AI industry, it may be a perfect time for renewables to make a timely comeback.

With this in mind, let’s explore the three brightest renewable energy stocks for investors to load onto their portfolios today:

1. Enovix Corporation (ENVX)

It’s been a challenging start to 2025 for silicon lithium-ion specialists, Evonix Corporation (NASDAQ: ENVX), which saw its stock fall 26% lower over the first two months of the year. However, the battery manufacturer may prove to be available at a discounted price for investors.

The stock reported Q4 2024 revenue of $9.6 million, while revenues for the full year climbed to $23.1 million, representing a substantial increase from $7.6 million in 2023.

Crucially, Enovix is a source of optimism because of the receipt of a pre-paid order for its silicon batteries from an unidentified technology company.

The batteries, which are intended for use in headset-based mixed-reality wearables, will begin shipping in mid-2025 and could be the beginning of more lucrative orders as wearable technology like smart glasses begins to become a more pervasive consumer technology.

Interestingly, Enovix also has meme stock credentials, and ranks 11th in Yahoo! Finance’s list of the best meme stocks to buy. This helps to provide another frontier in which ENVX can secure growth in 2025.

2. Sunrun Inc. (RUN)

Another stock that’s experienced a weak start to 2025 but is packed with potential is solar energy small-cap stock Sunrun Inc. (NASDAQ: RUN).

With a market capitalization of around $1.46 billion, Sunrun is a smaller player on this list with plenty of room for growth.

With a recent stock downgrade from Jeffries, which saw the stock cut from a ‘buy’ to ‘hold’ rating along with its price target falling from $14 to $8, it’s clear that Sunrun is more of an addition with the future in mind.

Despite its challenges, Sunrun remains one of the United States’ biggest residential solar energy providers and almost doubled its market share in California alone in recent years.

The company’s strong innovation pipeline has seen developments like the attaching of battery storage to 60% of its new projects, helping RUN to expand its addressable market as the execution of storage solutions climbed 126%.

With Sunrun expecting to generate between $350 to $600 million in cash throughout 2025, this stock could become a growth leader in the renewable energy market.

3. NANO Nuclear Energy Inc. (NNE)

One renewable energy firm that’s experienced an exceptionally strong start to 2025 is NANO Nuclear Energy Inc. (NASDAQ: NNE).

The stock has rallied more than 20% in the opening two months of the year and appears to be building momentum.

“The company is advancing projects such as the ZEUS Solid State Storage Reactor and the ODIN Low-Pressure Salt Reactor, which aim to offer portable and reliable clean energy solutions,” explained Maxim Manturov, head of investment research at Freedom24.

“The recent acquisition of key nuclear technologies not only strengthens NNE’s product portfolio but also enhances its competitive advantage in the nuclear energy sector. With significant capital raised and a strong cash position, NNE is well-positioned to fund its research and development initiatives while coping with potential market challenges.”

NANO is already making big moves in 2025, and recently appointed Dr. Florent Heidet as chief technology officer and head of reactor development, who is richly experienced and expected to become a driving force in refining the company’s innovations.

The Renewable Comeback

Although renewable energy stocks have been caught up in the wider ESG downturn in recent years, stock market volatility may provide an opportunity for more sustainable companies to prove their worth on a global scale.

This could see the brightest renewables stocks generating more sustainable levels of growth even in the challenging investment landscape that 2025 is proving to be.

The sustainability boom may have been on the back burner, but its best stocks could be primed for impressive results over the coming months and years.