Energy penny stocks refer to shares of small-cap companies in the energy sector, typically trading below $5 per share. These stocks can be highly volatile but offer significant growth potential, especially in emerging areas like renewable energy. They are popular among traders for their low entry cost and the possibility of substantial returns, although they come with higher risks due to market fluctuations and dependency on geopolitical factors
With the Biden administration announcing massive grants for electric vehicle and green energy companies, it looks like the green energy sector is about to make big leaps soon.
Read this article because it’s your one-stop resource for understanding the green energy sector, complete with actionable tips and sector trends for 2023.
I’ll answer the following questions …
- What Are Energy Penny Stocks?
- Why Should You Invest in Energy Penny Stocks?
- What Types of Energy Penny Stocks Are Available?
- How Do You Choose the Right Energy Penny Stocks to Invest In?
- How Do Government Policies Affect Energy Penny Stocks?
- How Do You Manage Risks When Trading Energy Penny Stocks?
- Are Energy Penny Stocks in Oil and Gas or Renewables?
- How Do You Use a Stock Screener to Find Energy Penny Stocks?
Table of Contents
- 1 What Is a Green Energy Stock?
- 2 What Qualifies a Stock as “Green”?
- 3 Green Energy Sector Trends in 2023
- 4 Green Energy Companies You Should Know About
- 5 What To Consider When Investing in Green Energy Penny Stocks
- 6 Green Energy Industry in the US
- 7 7 Top Green Energy Penny Stocks 2023
- 7.1 1. VinFast Auto Ltd (NASDAQ: VFS) — The EV IPO That’s Moving Like a Penny Stock
- 7.2 2. Mullen Automotive Inc. (NASDAQ: MULN) — My Troll Meme Stock Pick for the Bagholders Out There
- 7.3 3. Nikola Corporation (NASDAQ: NKLA) — The Hydrogen Fuel Cell EV Stock
- 7.4 4. Eos Energy Enterprises, Inc. (NASDAQ: EOSE) — The Energy Storage Billionaire Play
- 7.5 5. Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) — The EV Penny Stock That Also Wants to Be an AI Penny Stock
- 7.6 6. American Battery Technology Co. (OTCQB: ABML) — The EV Battery Penny Stock Spiker
- 7.7 7. Vision Energy Corp (OTCQB: VENG) — A Penny Stock Reinventing Itself
- 8 Best Online Brokers for Energy Penny Stocks
- 9 Risks of Investing in Renewable Energy Penny Stocks
- 10 Are Clean Energy Stocks Worth Watching?
- 11 When To Buy Clean Energy Penny Stocks
- 12 Green Energy Penny Stocks Watch List 2023 FAQs
- 12.1 How do I trade green energy stocks?
- 12.2 What are the best energy stocks to trade?
- 12.3 Can you get rich quickly with penny stocks?
- 12.4 Are energy penny stocks in oil and gas or renewables?
- 12.5 Are energy penny stocks volatile?
- 12.6 What investment opportunities exist in green penny stocks?
- 12.7 How do dividends and revenues factor in?
- 12.8 Can I trade these stocks on OTC markets?
- 12.9 How are these stocks countering fossil fuels?
- 12.10 What types of firms are listed in this category?
- 12.11 What does the financial media say about green penny stocks?
- 12.12 What should you consider for portfolio addition?
- 12.13 How can sales performance impact stock value?
- 12.14 What role do partnerships play in green penny stocks?
What Is a Green Energy Stock?
A green energy stock is just what its name implies: stock sold by companies in the green energy sector.
As a refresher, stocks are divided into several sectors or industries. Certain sectors get hot all at once — this means that all stocks in the sector can run on catalysts like the Biden grants.
Sympathy plays are also something to look for. When sector leaders run, their success can boost other stocks in the sector.
The green energy sector has sector leaders like Brookfield Renewable Partners (NYSE: BEP), First Solar (NASDAQ: FSLR), and Plug Power (NASDAQ: PLUG). The stocks I trade are less prominent, cheaper stocks — they can make big gains fast!
What Qualifies a Stock as “Green”?
A stock qualifies as “green” if the company works in the renewable energy sector — basically, anything related to environmentally-friendly efforts and renewable energy sources. Some companies that fall into the green energy sector include:
- Electric vehicle battery makers
- Solar panel manufacturers
- Wind power providers
- Renewable power plant operators
- Biodiesel producers
Green Energy Sector Trends in 2023
With the 2020–2021 run on green energy in the rear view mirror, the market has been waiting on real results — big contracts, government grants, and high earnings. There are also some less publicized green energy trends to watch for in 2023:
Wind and Solar Power Growth
As the push to cleaner energy continues, wind and solar companies will keep getting investors and grants. We’ll likely see some spikes from this sector in the coming year.
Increased Energy Storage Demands
When you generate power, you need a place to store it. That’s why energy storage businesses like battery companies are getting government grants, and running in response.
Rise in Cleantech
Cleantech is a catch-all term for renewable energy, carbon capture, recycling, and other technologies meant to reduce carbon consumption and reverse environmental damage. As regulators demand more sustainable and environmentally-friendly business practices, companies will likely follow suit and invest in more cleantech initiatives.
Green Energy Companies You Should Know About
The renewable energy sector is large, so you shouldn’t keep every company on your watchlist. But it does make sense to keep these sector leaders on your radar as we enter 2023.
Brookfield Renewable Partners LP (NYSE: BEP)
Brookfield Renewable is a renewable power asset company from Canada. It owns and operates various hydroelectric, wind, and solar power plants worldwide.
First Solar Inc. (NASDAQ: FSLR)
First Solar is a solar power system design and manufacturing company. It uses thin-film semiconductors to create its products and sells them to customers worldwide.
Enphase Energy Inc. (NASDAQ: ENPH)
Enphase creates clean energy solutions that merge solar generation, energy storage, and power management on one platform. This California-based company is one of the fastest-growing residential solar providers in the U.S.
Ormat Technologies Inc. (NYSE: ORA)
Unlike most companies in the sector, Ormat Technologies specializes in geothermal energy. Compared to solar and wind power, geothermal power has a more predictable power output since it comes from heat produced from inside the earth. However, it’s expensive — and can cause earthquakes!
SPI Energy Co., Ltd. (NASDAQ: SPI)
SPI Energy made its name in the renewable energy industry in the solar power, energy storage, and electric vehicle fields. It’s a jack-of-all-trades player with high potential. And it’s a penny stock, so you know I’ve got my eye on it.
What To Consider When Investing in Green Energy Penny Stocks
When you’re looking to invest in green energy penny stocks, there are several factors to consider. First, you need to understand the company’s financials. Look at revenue growth, profitability, and stability. Don’t just go by what analysts are saying; do your own research. I’ve been trading for years, and I can’t stress enough the importance of due diligence.
Next, consider the growth potential in the sector. With climate change becoming a global concern, alternative energy is gaining momentum. Companies involved in solar energy, nuclear power, and other forms of alternative energy have a lot of room to grow. Finally, look at the geopolitical landscape. Policies in countries like China and Europe can significantly impact the green energy sector.
After you’ve done your due diligence on a company’s financials and sector growth, consider the role of technology. Artificial Intelligence (AI) is becoming increasingly important in the green energy sector, from optimizing energy storage to predictive maintenance. Companies leveraging AI could have a competitive edge. If you’re intrigued by the intersection of AI and green energy, check out this guide on AI penny stocks.
Green Energy Industry in the US
The green energy industry in the U.S. is booming, thanks in part to a shift in policies and growing awareness about climate change. Solar panels, wind turbines, and other alternative energy projects are popping up all over the country. From my experience, this sector offers a lot of trading opportunities, especially for those who keep their risk tight and cut losses quickly.
However, it’s essential to understand the role of utility companies and the supply chain in this industry. Utility companies are increasingly investing in renewable energy, which can be a good sign for green energy penny stocks. Also, keep an eye on the supply chain, as disruptions can impact production and, consequently, stock prices.
While we’re talking about the booming green energy industry in the U.S., it’s worth noting the significance of where these stocks are listed. Nasdaq-listed stocks often come with a certain level of credibility and are subject to stringent regulations. If you’re looking to add some Nasdaq-listed green energy stocks to your watchlist, here’s a comprehensive guide.
7 Top Green Energy Penny Stocks 2023
My top green energy penny stock picks for 2023 are:
- NASDAQ: VFS — VinFast Auto Ltd — The EV IPO That’s Moving Like a Penny Stock
- NASDAQ: MULN — Mullen Automotive Inc. — My Troll Meme Stock Pick for the Bagholders Out There
- NASDAQ: NKLA — Nikola Corporation — The Hydrogen Fuel Cell EV Stock
- NASDAQ: EOSE — Eos Energy Enterprises, Inc. — The Energy Storage Billionaire Play
- NASDAQ: FFIE — Faraday Future Intelligent Electric Inc. — The EV Penny Stock That Also Wants to Be an AI Penny Stock
- OTCQB: ABML — American Battery Technology Co. — The EV Battery Penny Stock Spiker
- OTCQB: VENG — Vision Energy Corp — A Penny Stock Reinventing Itself
Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.
The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.
1. VinFast Auto Ltd (NASDAQ: VFS) — The EV IPO That’s Moving Like a Penny Stock
My first green energy penny stock pick is VinFast Auto Ltd (NASDAQ: VFS).
VinFast is a Vietnamese EV manufacturer.
On August 15 it IPOed and started trading at $22 per share.
IPOs are historically volatile.
I had eyes on it, but I don’t usually trade stocks above $5. It spiked a bit on day one and then sank lower.
I wrote it off as another failed IPO and was hoping to see it enter the penny-stock territory soon.
But the week of August 21 it spiked more than 370%. That’s usually a move we see from penny stocks …
And it’s likely due to the float.
There are only 1.3 million shares outstanding. A low share supply like that ensures the price will spike higher when demand increases.
It’s dipped in the weeks since its big run. Because of its low float, it has a chance at another one.
2. Mullen Automotive Inc. (NASDAQ: MULN) — My Troll Meme Stock Pick for the Bagholders Out There
My second green energy penny stock pick is Mullen Automotive Inc. (NASDAQ: MULN).
You’ve heard me say it a few times already …
One more time for the people in the back.
These spikes don’t last forever.
To help illustrate my point, I included MULN on this watchlist.
This was a popular EV spiker in 2020 and 2021. The price launched over 1,000% at one point.
People who bought at the top thought it was going to the moon. Maybe they believed in the company. Either way, they didn’t exercise enough caution. Now they’re holding a heavy bag …
On September 7 the company announced its upcoming delisting from the Nasdaq.
That’s the final nail in the coffin for any bag holder.
While MULN’s meme potential may have a stock army in the making, this might not be enough to salvage the scraps of the nosedive. Thankfully, I never make the kinds of bets that newbie shorts are prone to — I just keep stocks like MULN on the watchlist.
In total, I’ve already profited $2,200 from it (click the link for individual trades). Past spikers can spike again …
If it starts to pop, I’ll be ready.
3. Nikola Corporation (NASDAQ: NKLA) — The Hydrogen Fuel Cell EV Stock
My third green energy penny stock pick is Nikola Corporation (NASDAQ: NKLA).
Talk about a hot sector…
NKLA is making waves in the hydrogen fuel cell market, and they’re not messing around. On September 15, they celebrated the commercial launch of their hydrogen fueling station.
If you’re not sure why that’s a big deal, let me break it down for you…
Hydrogen fueling stations are the infrastructure backbone for hydrogen-powered vehicles. Without them, there’s no market. So, this launch is a significant catalyst for bullish momentum in the stock.
It already showed signs of volatility on September 13, with the price jumping more than 20% in less than two days.
4. Eos Energy Enterprises, Inc. (NASDAQ: EOSE) — The Energy Storage Billionaire Play
My fourth green energy penny stock pick is Eos Energy Enterprises, Inc. (NASDAQ: EOSE).
Eos Energy Enterprises recently announced their Z3 energy storage system will be used in Dominion Energy’s Darbytown Storage Pilot Project.
This is also one of billionaire investor — and Mets baseball team owner — Steve Cohen’s recent investments. News of his investments have worked as catalysts in the penny stock market.
At the beginning of September, the stock spiked over 50%.
Then the company announced a public stock offering that tanked the share price.
This is a highly volatile stock that I approach with extreme caution. Though not enough to keep out of the negative (click the link for individual trades).
This one’s still on my watchlist. Past spikers can spike again.
I’m waiting for the next trade setup.
5. Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) — The EV Penny Stock That Also Wants to Be an AI Penny Stock
My fifth green energy penny stock pick is Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE).
This is another double-sector stock.
It’s an EV penny stock but it’s also an AI penny stock.
And it has a host of past spikes with news …
On May 30, FFIE launched its FF 91 2.0 Futurist Alliance — a $309,000 AI tech luxury car — which it bills as a game-changer in the EV industry.
At the same time, the company released its product aiHypercar+, which it plans to sell in the U.S. and China.
By mid-June, the price spiked more than 120%.
Then we saw the company announce a reverse split while simultaneously selling $300 million of stock. That’s two catalysts working against each other. And the sellers won out.
Prices fell more than 30% over the weekend. And it only sank lower after that.
But there’s a light on the horizon.
On August 25 the company announced a new reverse split without including a sale of stock.
That hasn’t stopped its descent. Maybe a new press release will.
6. American Battery Technology Co. (OTCQB: ABML) — The EV Battery Penny Stock Spiker
My sixth green energy penny stock pick is American Battery Technology Co. (OTCQB: ABML).
ABML is a lithium-ion battery recycling powerhouse that extracts and recycles battery parts to lower waste.
You’ve got to pay attention to this stock’s habitual news-based hype and predictable fall… ABML has short-lived spikes in response to sensational news.
It’s always a good idea to keep a past runner like this one on the list.
Specifically when they start announcing press release after press release …
- August 14: White House meets with ABML
- August 17: A third drill program to boost production
- August 21: Purchases battery recycling facility
- August 22: Partnership for recycled batteries
The company is cooking up some spicy news that should spike the price sooner or later.
I’ve already made $21,903 in total earnings trading ABML (click the link to see individual trades).
And I’m ready for more …
7. Vision Energy Corp (OTCQB: VENG) — A Penny Stock Reinventing Itself
My seventh green energy penny stock pick is Vision Energy Corp (OTCQB: VENG).
This penny stock was one of the stories of late 2022. It was manipulated, and eventually came crashing down…
It even went to trading jail — it was slapped with the caveat emptor designation, preventing most traders from buying it.
In late April, we saw the hype cycle restart — for a two-week gain of 1,000%!
So far, I’ve profited a total of $2,800 from this stock alone (click the link for individual trades).
Right now it’s consolidating above $2. And that could be a sign of things to come. We know what this stock can do when it’s being pushed.
I’m waiting for a press release to get people interested. We need volume to trade these plays.
Once it starts to move with volume I’ll start to plan an entry and potential exit points.
Best Online Brokers for Energy Penny Stocks
Choosing the right broker is crucial for trading energy penny stocks. Look for brokers that offer extensive research and data tools. The more information you have, the better your trading decisions will be. I’ve been teaching trading for years, and I always tell my students to use platforms that provide real-time data and have a user-friendly app.
Also, consider the fees and commissions. High fees can eat into your profits, especially when you’re trading penny stocks. Some brokers offer commission-free trades, which can be a significant advantage. Make sure to read the fine print and understand all the costs involved.
Risks of Investing in Renewable Energy Penny Stocks
Investing in renewable energy penny stocks is not without risks. Market volatility is one of the primary concerns. These stocks can be highly volatile, making them risky investments if you don’t know what you’re doing. I’ve seen many traders who fail because they don’t understand the risks involved.
Another risk factor is the dependency on government policies and subsidies. A change in policy can significantly impact the industry. Also, consider the company’s operations. Are they involved in exploration or production? Each has its own set of risks and advantages.
Market volatility is a concern, but what about those penny stocks that are priced under 10 cents? These ultra-low-priced stocks can be even more volatile, offering both high risks and high rewards. If you’re considering diving into this end of the penny stock pool, make sure you’re well-informed. Here’s a detailed article on penny stocks under 10 cents.
Are Clean Energy Stocks Worth Watching?
Clean energy stocks are worth watching, just like stocks in other sectors. I maintain watchlists in multiple sectors, so I’m always prepared when one of these sectors gets hot.
I recommend you do the same and keep sector-specific lists of penny stocks. Organizing your preferred stocks into watchlists helps you prepare for stocks to trade when you spot unusual volume or news catalysts.
I also keep a NO-COST penny stock newsletter if you’re curious about which green energy stocks I watch weekly. As always, these aren’t buy recommendations. Self-sufficient traders watch more than they trade.
When To Buy Clean Energy Penny Stocks
As I’ve said time and time again: I react to the market, I don’t try to predict it. Predicting stock movements is for fraudsters, and you won’t be able to adjust if your prediction is wrong. Learn a stock’s patterns and history — and be ready to cut losses quickly when you’re wrong.
Learn more about buying penny stocks and all things trading in my Trading Challenge! Here, I share the knowledge earned during my 20-plus years in trading to help you become a self-sufficient trader.
Here’s what you get from the Challenge:
- Interactive webinars with me and my top students
- Over 7,000 video lessons
- Access to my community chat room
- So much more!
Are there green energy stocks you’re keeping an eye on? Let me know in the comments!
Green Energy Penny Stocks Watch List 2023 FAQs
How do I trade green energy stocks?
You trade green energy stocks just like any stocks — keep a close eye on their news and react to chart movements. Always do your due diligence and study the stock’s history and chart to ensure you make the right trades.
What are the best energy stocks to trade?
There’s really no “best” energy stock to trade because circumstances change and prices move. However, you can keep a watchlist of your preferred energy companies and monitor each of them closely. When you see a good setup it might be a good time to trade.
Can you get rich quickly with penny stocks?
You can get rich with penny stocks, but not necessarily quickly. Penny stock trading is a great way to build your trading account, knowledge, and experience — all things you need to become a successful and smart trader.
Are energy penny stocks in oil and gas or renewables?
Energy penny stocks can be in both oil and gas as well as renewables. However, with the global focus shifting towards combating climate change, renewable energy stocks are gaining more attention. From my trading experience, I’ve found that renewables often offer more long-term growth potential.
Are energy penny stocks volatile?
Yes, energy penny stocks can be highly volatile. This volatility can offer significant returns but also comes with increased risks. It’s crucial to have a solid trading plan and stick to it. I’ve been right about 70% of the time in my trades, and it’s all about managing risks effectively.
What investment opportunities exist in green penny stocks?
Green penny stocks present an investment opportunity for those interested in diversifying their portfolio. You can take various positions in companies focused on sustainable energy, such as SUNW, which deals in electricity production. ETFs specifically tailored for green energy are also available.
How do dividends and revenues factor in?
For the most part, green penny stocks do not offer dividends due to their focus on growth. However, their revenues can indicate the performance of these companies. It’s important to consult an author specializing in the green energy sector for the most reliable details.
Can I trade these stocks on OTC markets?
Yes, many green energy penny stocks are OTC (Over-The-Counter) traded. Before making any investment, check the exchange where the stock is traded and be mindful of the disclaimer usually associated with OTC stocks. A financial fund that focuses on OTC green energy stocks might be an opportunity for investment.
How are these stocks countering fossil fuels?
Companies like SUNW are making strides to reduce dependency on fossil fuels. They create infrastructure for renewable energy, which can be a great addition to your investment portfolio. The global focus is shifting toward sustainability, creating a chance for these stocks to excel.
What types of firms are listed in this category?
Different types of firms are included, offering various services related to green energy. From waste management systems to energy storage assets, the range is diverse. Some even forge partnerships with established companies to expand their services and scale their operations.
What does the financial media say about green penny stocks?
Reputed media outlets like CNN cover these stocks and their performance. It’s advisable to keep track of the news for any significant reasons that could impact these stocks. Always pay attention to the interests discussed in such articles to better understand the landscape.
What should you consider for portfolio addition?
Before making an addition to your portfolio, consider the company’s value compared to its revenues. It’s also important to assess the money invested in infrastructure and applications for renewable energy. Diversification through ETFs is also an option.
How can sales performance impact stock value?
Sales figures and revenue generation play a significant role in determining the stock’s value. In the green energy sector, revenues mostly come from applications like energy storage, solar installations, and waste management services.
What role do partnerships play in green penny stocks?
Partnerships are crucial for these companies to expand their assets and services. Strategic alliances can substantially increase sales and improve the overall performance of the stock in the market. Such details are often covered by financial media.