The growth of renewable energy in America has been nothing short of phenomenal over the past decade. Renewable energy companies specializing in wind and solar power have rapidly increased their contribution to the U.S. electricity mix. Where wind and solar were once considered alternative niche sources, they now generate 16.9% of the country’s total electrical output as of Q1 2023 — a substantial rise in just a few years.
According to the most recent data, utility-scale wind capacity in the United States totaled 141 gigawatts (GW) by the end of 2022, up from 122 GW in 2020. Solar capacity also saw momentous growth, reaching 113 GW nationwide by the end of last year compared to 97 GW in 2020.
This momentum shows no signs of slowing down. Recent projections indicate the United States is on track to add over 200 gigawatts of renewable energy capacity by 2026, an immense increase driven by continuously improving technology economics, strong corporate clean power demand, and policy support. The renewable energy transition unquestionably presents enormous opportunities for investors. By positioning capital with the pioneering companies leading the charge, one could benefit tremendously from this clean energy transition.
This article will analyze key renewable energy companies that are driving America’s wind and solar expansion through their technology advancements, development expertise, and financing model breakthroughs. Understanding these industry leaders provides useful insights for those seeking to capitalize on the renewable energy future unfolding before our eyes.
NextEra: Investing Heavily to Lead the Renewable Transition
NextEra Energy (NYSE: NEE) has grown into the industry’s top renewable power generator through a combination of acquisitions, development projects, and strategic partnerships. The company has steadily acquired clean energy infrastructure like wind farms, solar plants, and battery storage facilities. It also directly develops new wind and solar assets leveraging its in-house engineering, procurement, and construction expertise.
Additionally, NextEra partners with other companies on co-development agreements to build out renewable projects and share costs and benefits. Through these approaches, NextEra now operates over 50 million solar panels and roughly 150 wind farms across North America.
A major factor underlying NextEra’s renewable energy dominance is its best-in-class site selection capabilities. The company has invested heavily in predictive data analytics tools to identify ideal locations for new wind and solar projects based on granular assessments of weather patterns, terrain, transmission infrastructure, and more. These analytics enable smarter site selection to maximize energy production. NextEra also leans on its regional market knowledge from operating utilities in 27 states and Canada when targeting new renewable developments.
NextEra started quickly growing its renewable energy in 2022. The company is working to add 30 million new solar panels and 11,000-15,000 more megawatts of wind power by 2025. This supports NextEra’s major clean energy growth goals. NextEra is spending $50-$55 billion on capital investments over this time as it works to be carbon neutral by 2045. About 15,000 NextEra employees focus on growing renewable energy to lead this expansion.
GE Renewable Energy: Driving Innovation Through Materials Science and Design
As a leading wind turbine manufacturer, GE Renewable Energy (NYSE: GE) has delivered over 43,000 turbines to customers across 90 countries. The company’s global footprint reflects its ability to engineer products for diverse wind and weather conditions. GE wind turbines are designed for onshore, offshore, and harsh climate applications.
The company also customizes tower height and turbine capacity based on site characteristics and grid needs. Recently, GE developed the first 5-megawatt offshore wind turbine and launched the largest onshore turbine for low wind speed sites.
GE applies its expertise in materials science, aerodynamics, and electrical systems to drive wind technology innovation. The company has created lighter, stronger composite materials for longer, more reliable blades. It utilizes 3D blade shaping for better efficiency. Within the turbine nacelle, GE incorporates automation, sensing, and analytics to optimize performance.
The company also integrates digital analytics across the asset lifecycle, from planning to maintenance. Through these technology improvements, GE looks to continue lowering the cost of wind energy for customers worldwide.
The Global Research Center, GE’s central technology innovation hub based in New York, houses hundreds of scientists and engineers dedicated to renewable energy. The center includes five labs focused on areas like materials, aeroacoustics, mechanical systems, and more.
This high-powered R&D enables GE to pioneer new wind power breakthroughs. Recent areas of focus include recyclable turbine blades, hydrogen-compatible generators, and floating offshore wind technologies.
First Solar: Well-Positioned for Large-Scale Solar Demand
As the largest U.S. solar manufacturer, First Solar (NASDAQ: FSLR) produces the Series 6 thin-film solar module. Designed and developed entirely in-house, the Series 6 module sets industry benchmarks for efficiency, temperature performance, degradation, and lifetime energy output.
It leverages a cadmium telluride (CdTe) photovoltaic thin film layer requiring a fraction of the crystalline silicon used in conventional panels. The CdTe semiconductor optimally converts sunlight to energy at high temperatures and low light. These factors give First Solar modules a competitive advantage in hot, humid climates.
First Solar concentrates on technological advances to preserve its competitive advantage. At its perovskite-based tandem PV labs in California and Ohio, the company is developing cell materials and architectures to substantially boost panel efficiency.
First Solar intends to achieve costs below $0.20 per watt, which requires continued advances in manufacturing processes and scaling. Its newest production lines in Ohio employ Industry 4.0 intelligent automation, machine learning, and wearable technology to increase throughput. The company is also investing in recyclability, recently achieving a 90% recycling rate for end-of-life panels.
With a pipeline of over 40 gigawatts and a global project development platform, First Solar is well-positioned for the utility-scale solar boom. Its technology innovations and focus on comprehensive lifecycle solutions help First Solar partner with leading project developers, operators, and investors worldwide. Key markets include the U.S., India, Australia, and the Middle East where its high-temperature module performance provides advantages.
Sunrun: Pioneering Solar-as-a-Service for Homeowners
Sunrun (NASDAQ: RUN) pioneered the solar-as-a-service model for residential energy consumers. Its solar leasing arrangements require no large upfront investment from homeowners. Instead, customers pay little to nothing for the system installation and secure a low monthly rate for the solar power produced.
Sunrun handles the financing, maintenance, and monitoring of the rooftop system while families benefit from solar and lower utility bills. This breakthrough business model enabled solar adoption growth by expanding access.
Sunrun looks to further increase accessibility through its innovative virtual power plant platform. By networking home solar and battery systems to form a large-scale grid resource, Sunrun aggregates and coordinates their capabilities.
This solar-generated power and stored capacity can help stabilize the grid during periods of high electricity demand. Sunrun’s virtual power plant thus turns distributed home solar into a valuable grid resource — opening revenue opportunities that help offset costs.
With customers now exceeding 800,000 households, Sunrun is the dominant national residential solar provider. The company utilizes field energy advisors and a digital sales platform to guide more families to choose solar. Sunrun’s expertise in siting, installing, and maintaining home systems position it to lead as rooftop solar expands. The company is bringing clean, resilient, and affordable solar energy to more communities nationwide.
Vestas: Leveraging Four Decades of Global Experience
As a leading global manufacturer, Vestas Wind Systems (OTCMKTS: VWDRY) has installed over 140 GW of wind turbines worldwide across 80 countries since 1978. This unparalleled experience has made Vestas an expert in designing and siting turbines to maximize performance across diverse environments. The company leverages wind data analytics, advanced testing, and over 44 years of field deployment learning to inform its technology innovation.
Vestas continuously works to enhance turbine efficiency, reliability, and grid integration capabilities for improved cost of energy. The company has played a key role in scaling turbine size and power ratings through advancements like lighter and stronger blades, advanced controls, and load management systems. Recent focuses include recyclable blade technologies and sustainable manufacturing processes to increase sustainability.
With over 29,000 employees focused on wind energy, Vestas provides complete wind power solutions. The company has extensive experience transporting, installing, operating, and servicing projects across continents — including remote and challenging sites. Vestas also helps address grid integration complexities as wind penetration increases. Its comprehensive capabilities make Vestas a strategic partner for developers worldwide.
Ørsted: The Industry’s Most Experienced Offshore Wind Developer
Ørsted (OTCMKTS: DNNGY) has firmly established itself as the global leader in offshore wind power with over 7.5 GW in offshore wind assets in operation. The Denmark-based company spearheaded the scale-up of offshore wind since erecting the world’s first offshore turbine in 1991. Ørsted now has over 30 years of expertise in building complex offshore wind farms and supplying clean power to European grids.
A key focus for Ørsted is creating innovative technologies and infrastructure for efficiently installing, operating, and transmitting offshore wind. The company has developed some of the first purpose-built offshore installation vessels. It also works closely with supply chain partners and universities to iteratively enhance foundations, substations, and cabling needed for larger turbines situated farther from shore.
In the United States, Ørsted is bringing its offshore technical knowledge and operational experience to catalyze the nascent market. The company was awarded the first two commercial-scale offshore wind contracts in federal water auctions. Ørsted’s status as a proven pioneer positions it well to unlock America’s vast offshore wind potential. Its investments intend to build an enduring U.S. offshore wind supply chain.
Key Takeaways: The Integral Importance of Renewable Energy Companies
For those interested in learning more about capitalizing on the renewable energy investment opportunities highlighted here, a useful primer is the book Investing 101: From Stocks and Bonds to ETFs and IPOs by Michele Cagan. This crash course on building a profitable portfolio provides a hands-on lesson in core investing principles from value investing to risk tolerance.
The book intends to engage learning with hundreds of entertaining insights that can help any new investor master the basics. With renewable energy companies positioned for major growth, Investing 101 may prove a valuable resource for taking the first steps toward participating in this expanding market.
With determined action from pioneering companies and constructive collaboration among all stakeholders, a decarbonized energy future empowered by renewables is within reach. And through thoughtful investing education, more people can position themselves to reap the benefits of this clean energy transition unfolding before our eyes.
Check out Michele Cagan’s Book on Amazon
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