Top 5 UK green stocks

Written by Lori Campbell on 23rd Feb 2021

Investing sustainably is increasingly being seen as not just an ethical move, but a potentially smart and profitable one too.

New data from Money.co.uk has revealed that many ‘green’ stocks have experienced incredible growth in 2020, even with it being such an uncertain year.

Here are the eco-friendly companies have seen their shares perform best:

 

Top 5 UK green stocks with the biggest growth in 2020

Rank Company Ticker Symbol Sector Start of Year Share Price End of Year Share Price 2020 Increase
1 PowerHouse Energy Group PHE Renewable Energy £0.52 £9.80 1,785%
2 EQTEC EQT Renewable Energy £0.18 £2.59 1,339%
3 Ceres Power CWR Alternative Energy £273 £1,320 384%
4 Drax Group DRX Renewable Energy £309.40 £375.00 21%
5 SSE plc SSE Energy £1,445 £1,500 4%

 

2020 proved to be a year of fantastic growth for PowerHouse Energy Group (PHE), which saw its share price grow £0.52 to £0.52 – a substantial 1,785 per cent increase. The renewable energy company was followed by EQTEC with an increase of 1,339 per cent (£0.18 to £2.59) and alternative energy company Ceres Power (384 per cent).

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However, some other green companies analysed either stalled, or saw their share price drop, including Good Energy (-13 per cent) and Greencoat UK Wind (-12 per cent).

When looking on a global basis, hydrogen fuel cell company Plug Power saw its share price skyrocket by over 940 per cent, from $3.24  (£2.30) at the start of the year to $33.91 (£24.08) by the end of 2020.

 

Top 5 green sectors with the biggest growth in 2020

Rank Sector Average Start of Year Share Price Average End of Year Share Price Average 2020 Increase
1 Green Transport $26.54 (£18.85) $198.25 (£140.80) 647%
2 Alternative Energy $4.83 (£3.43) $22.92 (£16.28) 375%
3 Solar Power $33.00 (£23.44) $106.86 (£75.89) 224%
4 Renewable Energy $20.66 (£14.67) $38.05 (£27.02) 84%
5 Wind Power $35.10 (£24.93) $63.69 (£45.23) 81%

 

Eco-friendly stocks have had a good year across the board globally, with just eight out of the 50 companies analysed seeing their share price drop in 2020. Green transport took the lead with the biggest growth of 647 per cent. This was largely driven by the stocks of Tesla, although other companies in this sector which had a good year include BYD Company and FuelCell Energy.

The second fastest-growing green sector was alternative energy, which grew by 375 per cent in the last year and encompasses areas such as hydrogen and solid oxide fuel cell systems.

Solar power also enjoyed notable growth in 2020. This was partially fuelled by the potential changes that the recent US election has brought about, with many investors speculating that greener policies would follow Joe Biden’s win.

Big winners in the solar sector included Enphase Energy (+498 per cent), Daqo New Energy (+421 per cent), SunPower (+400 per cent) and Sunrun (+389 per cent).