2 Top Stocks in Renewable Energy
The prospects for solar and wind energy have never been better. According to the U.S. Energy Information Administration (EIA), new utility-scale solar projects with trackers entering into service in 2022 will have a lower levelized cost of energy (LCOE) than natural-gas-fired power plants (which used to be the cheapest form of power generation). Array Technologies (NASDAQ: ARRY) went public in October of last year and dominates the U.S. solar tracker market.
Like the solar industry, wind energy investments are growing in popularity. Utility-scale wind energy costs have come down by over 70% since 2009. TPI Composites (NASDAQ: TPIC) fills a niche role as the largest independent manufacturer of wind blades. Based on research by Lazard, the LCOE of new wind projects is cheaper than sustaining operations at combined-cycle natural-gas-fired power plants, nuclear plants, and coal plants. According to TPI Composites CEO William Siwek, "utility-scale wind LCOE remains at or below that of utility-scale solar on an unsubsidized basis and, in the best locations, significantly cheaper on a subsidized basis." Although solar has been growing faster than wind in some regions, wind energy is the largest source of renewable power generation in the U.S. -- generating four times more power than solar.
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Source Fool.com