8 Of The Best Renewable Energy Stocks in Canada

What are renewable energy stocks in Canada and why is it all over the news? It is because Canada is trying to become a world leader in newer, cleaner energy.

Due to the looming threat of climate change, renewable energy has become important for saving our environment. The federal government has the Climate Action Incentive Payment, aka the carbon tax, to convince Canadians to adopt cleaner energy.

The only problem is that producing clean energy usually requires higher upfront costs than other energy sources. That is why many companies are developing their own investment programs to finance their operations. 

That means you can potentially help the planet and make a profit by investing in those kinds of companies. Read this to discover the best renewable energy stocks in Canada.

Types Of Renewable Energy Stocks

Renewable energy refers to resources that can be replenished quickly over a longer period of time than fossil fuels. While Canada’s energy sector used to be based mainly on the production of fossil fuels (which aren’t renewable), it seems that climate change has finally brought about a more environmentally-friendly way of thinking in that regard.  

True to their name, renewable energy stocks are publicly-traded companies that invest heavily in the generation of clean, low-emission, and reliable energy sources, including:

• Bioenergy 
• Solar Power 
• Wind Power
• Geothermal Energy
• Hydro/Ocean Power  

Tips On Choosing So-Called Green Energy Stocks

No matter how experienced you are when it comes to Canada’s stock market, there are always ways you can expand your portfolio by investing in renewable energy, such as:  

• Diversification – Since renewable energy is an industry that’s still growing, it’s a good idea to diversify your portfolio by investing in a wide variety of stocks from multiple companies. Consider your long and short-term financial goals, do lots of research, and remember that past performance doesn’t guarantee future results.  

• Keeping Up With International News – To make the most out of your renewable energy stocks, it’s also smart to keep track of global financial news. For instance, while Canada and the U.S. are world leaders in the generation of clean energy, there are many countries in Asia, South America, and Europe that surpass them. 

Best Renewable Energy Stocks For Canadians

Before you invest in any type of market or stock, it’s important to consider every factor, including its price volatility,  historical data, profit margins, dividends, and revenue growth.     

Polaris Infrastructure Inc.

Even though Polaris has a smaller market cap than many other stocks in Canada, they own and operate 5 renewable energy projects in Latin America, with 2 more solar developments on the way. They’re also highly concentrated geographically and produce far less electricity than their peers. 

Largo Resources Ltd.

Formerly known as Consolidated Kaitone Holdings Inc, Largo Resources is a natural resource development and exploration company based in Canada, with additional operations in Brazil. They mine primarily for industrial metals, such as iron, vanadium, tungsten, and molybdenum deposits.     

TransAlta Renewables Inc.

Transatlanta is a renewable energy company with wind, solar, natural gas, battery, and hydropower facilities in Canada, the US, and Australia. They are the largest producer of wind energy in Canada, with 27 facilities countrywide. Most of their cash flow comes from wind and natural gas.    

Northland Power Inc.

Northland Power has been building renewable energy facilities in Canada since 1987. They’re characterized as a core stock, falling between value and growth, and offer common and preferred shares outstanding, which is why they are a great renewable energy stock to add to your portfolio.    

Boralex Inc.

Borax is a publicly-traded company with operations in Canada, France, the UK, and the US. They’re the largest independent onshore wind energy producer in France and are focused mainly on corporate responsibility (CSR) and environmental, social, and corporate governance (ESG) objectives.    

Innergex Renewable Energy

Headquartered in Quebec, Innergex is 100% focused on clean energy, with interests in 84 facilities and 13 projects across Canada, the US, Chile, and France. Since they’re a growth stock, they trade at high valuation multiples compared to other renewable energy stocks in Canada.    

Brookfield Renewable Partners

BRP is the largest renewable energy stock in Canada by market capitalization. They own almost 6,000 facilities across North and South America, Asia and Europe. Those facilities have lowered emissions of an estimated 28 million metric tons of Co2, with 39 million more tons on the way.    

Enbridge

Although they still invest heavily in fossil fuels, Enbridge is another of Canada’s largest clean energy producers. Based in Calgary, they now have 23 wind farms and 17 solar energy operations across North America. They’ve also invested more than $8 billion into clean energy projects over the past 20 years. 

How To Buy Green Energy Stocks In Canada

Choosing the right stocks can be somewhat difficult if you’re not an experienced trader. Don’t worry, because there are plenty of investment brokerage platforms you can use to research, buy, and manage the best renewable energy stocks in Canada, including:   

• Questrade – This easy platform is a great choice for Canadian traders due to its fair prices and user-friendly web/mobile apps. Questrade stock trading fees start as low as $4.99, which is on par with what most brokerages charge in Canada. Plus, subscribers don’t need to pay trading commissions when they buy exchange-traded funds (ETFs).

• Wealthsimple Trade – Wealthsimple is another simple investment platform that’s cheap and easy to navigate. It offers zero-commission trading for most stocks listed on Canadian markets, making it appealing for new and experienced traders alike. That means you can invest in renewable energy stocks in Canada for free.    

• CIBC Investors Edge – If you’d prefer to go with a more trusted company, you can also invest in the best renewable energy stocks in Canada through many of our banks. For example, CIBC’s Investors Edge, which features comparable commission fees to other Canadian investment platforms (at $6.95 per trade).  

Are Green Tech Stocks Right For Your Investing Strategy?

Only you know if you are ready to invest in green tech stocks. You have to do your own research and invest only what you don’t need in the next few years or are OK losing. Like any other investment, renewable energy stocks can make or break your portfolio.

Frequently Asked Questions