2 renewable energy stocks I’d buy to boost my passive income

I’m searching for the best renewable energy stocks to buy as demand for green energy booms. Here are two top passive income shares on my watchlist.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Windmills for electric power production.

Image source: Getty Images

The key to receiving healthy passive income streams is to find shares that can pay big dividends reliably year after year. I think that renewable energy stocks could be some of the best shares to help significantly boost my wealth.

Energy producers tend to be some of the most stable stocks I can choose from. The essential service they provide means that their profits remain broadly unchanged during good times and bad. This sets them apart from most other UK shares where economic downturns can smack profits hard and deliver a hammer blow to dividends.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

I like renewable energy stocks in particular because of their critical role in tackling the climate crisis. This is a cause that is close to my heart. And it also provides exceptional investment potential as lawmakers take steps to help the switch to green energy to meet their net zero targets.

Two top renewable energy stocks

With this in mind here are two top renewable energy stocks I’d buy today. I think they could significantly boost my passive income over the long term.


It’s hard to look past SSE when talking about the best renewable energy stocks to buy. The FTSE 100 business is already a big player in the world of low-carbon power and intends to invest £12.5bn in clean energy by 2026. Under its accelerated strategy announced last autumn, SSE will double its renewable capacity to 8GW within five years. It will also help the firm generate a quarter of the UK’s offshore wind capacity target.

I think SSE’s 5.2% forward dividend yield makes it particularly attractive today. The main issue I have with the Footsie business is the unpredictable nature of wind power which can sometimes hit earnings. This is what prompted SSE to issue a profits warning in mid-2021.

Still, I think the long-term benefits of owning this UK share more than offset any temporary trouble investors like me could experience. And what’s more, I think it looks particularly cheap at current prices. Its forward price-to-earnings growth (PEG) ratio of 0.6 sits well inside bargain-basement territory below 1. 

The Renewables Infrastructure Group

The Renewables Infrastructure Group, meanwhile offers investors a chance to diversify with renewable energy stocks. This investment company has stakes in solar farms and onshore and offshore wind assets all over Europe (though predominantly in Britain and France). It also holds a 100% interest in the Broxburn battery storage project in Scotland.

TRIG’s presence all over Europe means that profits aren’t dependent on favourable weather conditions in one or two places. This helps reduce the risk for investors. A fly in the ointment here could be that the 30-plus solar projects it owns can be particularly expensive to run. But all things considered this is another top dividend stock to buy today. The yield here sits at a chunky 5.3% for 2022.

Our 5 Top Shares for the New “Green Industrial Revolution"

It was released in November 2020, and make no mistake:

It’s happening.

The UK Government’s 10-point plan for a new “Green Industrial Revolution.”

PriceWaterhouse Coopers believes this trend will cost £400billion…

…That’s just here in Britain over the next 10 years.

Worldwide, the Green Industrial Revolution could be worth TRILLIONS.

It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!

Access this special "Green Industrial Revolution" presentation now

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

More on Investing Articles

Lady researching stocks
Investing Articles

Here’s why I’m avoiding this dirt-cheap dividend penny stock!

A dirt-cheap, dividend-paying penny stock with a vast presence sounds good on the surface. This Fool isn't convinced, however.

Read more »

Asian Indian male white collar worker on wheelchair having video conference with his business partners
Investing Articles

These top income stocks look dirt cheap to me. I’d buy them now

I'm taking advantage of today's stock market weakness to load up on top value income stocks

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

Excessive stock trading erodes long-term gains!

Are high trading fees eating away at your returns? Research suggests that excessive stock trading could be to blame.

Read more »

Young woman sat at laptop by a window
Investing Articles

Pearson shares are up 25% since the market correction! Should I buy now?

Why have Pearson shares rallied since the market correction? This Fool looks at the educational provider in more detail and…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

Recession ready! I’d buy these FTSE 100 stocks for tough times

Jon Smith explains some of his favourite options for defensive FTSE 100 stocks that he's thinking of adding to his…

Read more »

A graph made of neon tubes in a room
Investing Articles

Down 45%, are these UK shares no-brainer bargains right now? 

Several top UK shares are down significantly and two companies on my list look like possible attractive buys right now.…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

I bought these 2 FTSE 100 shares two years ago. Should I now add to them?

Andrew Woods asks if he should add to his current holding in these two FTSE 100 shares ahead of a…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Has the Deliveroo share price bottomed?

The Deliveroo share price (LON:ROO) is down nearly 60% in 2022. Paul Summers asks whether it's now hit bargain territory.

Read more »