Westward Group Alternative: Top 10

Alternative Energy Stocks for 2015

With global energy demand continuously on the rise, fossil fuels

alone will not be sufficient to meet the demand. Alternative

energy, which is defined as any energy source other than fossil

fuels, is gaining interest. This segment addresses a lot of

concerns linked to fossil fuel usage, including carbon-dioxide

emissions, climate change, and other harmful effects on the

environment. Companies operating in the alternate energy

space include business operations in products, services, and

research associated with alternative energy, and in production

and supply of alternative energy. As development in technology

continues amid high fluctuations in oil prices, this sector is

expected to see high volatility.

This article discusses the top alternate energy stocks that look

promising for 2015. The list is in alphabetical order with market

capitalization, revenue, relative past performance for last one

year, a brief description of primary business streams, and future

prospects. Sun and wind rule the popularity list, while others

forms of energy like biomass, geothermal, hydroelectricity are

limited due to operational constraints and less efficiency. (See

related: Why You Should Invest in Green Energy Right Now)

1. Canadian Solar Inc. (CSIQ): Founded in 2001 and

headquartered in West Guelph, Canada, Canadian Solar is in the

business of designing, developing, and producing solar cells,

solar wafers, solar modules, and solar power products. It

operates globally with a presence in Canada, the US, China,

Germany, India, and Japan. Its market cap is around $1.9 billion

and revenues are $914.38 million. Investors looking for

investments in a global solar energy business will find this

company a good fit.

2. Enphase (ENPH): Founded in 2006 and headquartered in

Petaluma, California, Enphase Energy, Inc. is in the business of

developing and designing of microinverter systems for the solar

photovoltaic industry internationally. Associated businesses

include the Enlighten software portal that acquires, processes,

and relays information that helps customers to monitor and

manage their solar power systems. Enphase has a market cap of

$537 million and revenues of $105.21 million.

3. First Solar (FSLR): Founded in 1985 and headquartered in

Tempe, Arizona, First Solar, Inc. is in the business of designing,

manufacturing, and selling photovoltaic solar equipment and

solar power systems through its two segments: components and

systems. It has a market cap of $5.98 billion and revenues of $1

billion. It operates globally, serving commercial and industrial

clients.

4. NextEra Energy (NEE): Founded in 1984 and headquartered in

Juno Beach, Florida, NextEra is in the business of renewable

energy generation from sun and wind. It operates in the US and

Canada through two subsidiaries: Florida Power & Light

Company and NextEra Energy Resources, LLC. The company

offers wholesale and retail electrical service to almost five

million customers and owns generation, transmission, and

distribution facilities to support its services. Its market cap is

around $46.43 billion and revenues are $4.664 billion. Investors

looking for a company with operations in both wind and solar

space will find this company a good fit.

5. Plug Power Inc. (PLUG): Founded in 1997 and headquartered

in Latham, NY, Plug Power provides technology for the

alternative energy sector. Its business operations are in design,

development, commercialization, and manufacture of fuel cell

systems for the industrial off-road market. Its market cap is

around $454.32 million and revenues are $21.45 million.

Although ranking lower in terms of market cap compared to the

other stocks mentioned, Plug Power is a leader in fuel-cell

technology and one of the pure technology players in the

alternate energy space.

1. SolarCity Corp (SCTY): Founded in 2006 and headquartered in

San Mateo, California, SolarCity is designs, installs, and sells and

leases solar systems for commercial and residential customers.

It also operates the sale of electricity that is generated by solar

systems. Other businesses include energy storage, charging

services for electrical vehicles, home energy evaluations, and

energy efficiency upgrades. The companys market cap is around

$4.81 billion and revenues are $71.81 million. With a wide

variety of businesses based on solar energy, this company is

firmly placed in the list of top alternative energy stocks.

2. SunEdison, Inc. (SUNE): Founded in 1984 and headquartered

in Maryland Heights, Missouri, SunEdison Inc. is into renewable

and solar energy. Through its three segments (solar energy,

semiconductor materials, and TerraForm Power), it is in the

business of developing, manufacturing and sales of silicon

wafers, photovoltaic cells, and other energy solutions. It has a

market cap of $6.47 billion and revenues of $610.5 million.

3. SunPower Corp. (SPWR): Founded in 1985 and headquartered

in San Jose, California, SunPower Corp. is an energy services and

technology company. Its customer base is spread across

residential, industrial, and utility segments with operations in

North and South America, Europe, the Middle East, and Asia

Pacific. Its product range includes ground mounted and rooftop

solar systems, panels, and inverters. Its market cap is $41.7

billion and revenues are $1.17 billion. This company offers a

good investment option with business serving a diversified

customer base globally.

4. TerraForm Power (TERP): Founded in 2014 and headquartered

in Bethesda, Maryland, TerraForm Power Inc., owns and

operates the contracted clean power generation assets of

SunEdison, Inc. and other entities. It is a wholly-owned

subsidiary of SunEdison. The company operates wind and solar

power plants in Canada, Chile, the UK, and the US. It plans to

expand further into wind, geothermal, natural gas,

hydroelectricity, and hybrid-energy solutions, which can make it

a good long-term good investment option. Its market cap is

$4.47 billion and revenues are $42.57 billion.

5. Viviant Solar, Inc. (VSLR): Founded in 2011 and

headquartered in Lehi, Utah, Viviant Solar follows the

distributed model for selling electricity generated by a solar

energy system installed at customers locations to other

residential energy customers, based on contract pricing. It

operates in Arizona, California, Hawaii, Maryland,

Massachusetts, New Jersey, New York, and Utah. Viviant also

offers photovoltaic installation software products and

equipment. It has a market cap of $1.3 billion and revenues of

$6.86 billion. Investors looking for a US-focused solar energy

company might find this a good fit.

The Bottom Line

The alternative energy sector has seen a few challenges in last

few years and growth has not met expectations. For example,

the US Department of Energys loan program to fund solar

industries had initial failures with companies like Solyndra and

Abound Solar going bankrupt. However, the program was

reported to break even in December 2014, showing signs of

success and justifying the claims that supporters of alternative

energy will benefit in the long-term. Moreover, the sector

continues to evolve and is expected to see good growth in the

mid- to long-term. (A good number of companies listed above

are less than a decade old.) One can also explore alternate

energy ETFs as an investment option.

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