There are few other sectors that hold the same potential returns as these green penny stocks to buy now. The growth of green energy is a burgeoning opportunity that investors can see everywhere in their daily lives. 

It wasn’t long ago that solar arrays were an uncommon sight. Today most readers can easily think of a nearby solar array. The same is true of wind farms populated with dozens of massive wind turbines. It’s a consequence of the non-cyclical trends of renewable electricity capacity. That capacity is expected to increase by more than 80% between 2020 and 2026. And where there’s growth, there’s potential for impressive returns. That gives green energy stocks a strong runway moving forward.

Penny stocks are well-known for their ability to produce rapid, high returns as well. So low-priced, green energy stocks can create very attractive opportunities. 

Sunworks (SUNW)

Sunworks (NASDAQ:SUNW) is a jack-of-all-trades solar power systems company located in Provo, Utah. The company sells solar power systems to many types of customers, including  agricultural, commercial and industrial, state and federal government, public works, and residential. 

The growth outlook of Sunworks is what should interest investors. Sunworks’ revenues increased to $40.71 million in Q3, representing a 30.4% increase on a year-over-year basis. Meanwhile, its losses narrowed during the same period, falling to $5.39 million from $6.45 million. That is compelling growth which should interest investors seeking a cheap solar energy stock. 

Undoubtedly, SUNW stock will continue to exhibit volatility in these uncertain times and difficult market conditions. However, growth stock valuations have fallen dramatically, making strong growth shares like SUNW a bargain. 

The company maintains more than $14 million of liquidity on its balance sheet. That will be enough to see it through several more quarters in a worst-case scenario. However, given that the company is quickly narrowing its net losses, it is likely quite close to profitability. 

Solar Alliance Energy (SAENF)

Solar Alliance Energy (OTCMKTS:SAENF) is a prime example of the explosive potential of green energy penny stocks. It can soar 20 times over the next 12 to 18 months based on analysts’ average price target  of $1.15. The shares are risky,  but they provide  bold, risk-tolerant investors with a great  opportunity. 

But there’s actually quite a lot to like about Solar Alliance from a fundamental perspective. Its Q3 revenue growth was exceptional as the company recorded its highest-ever sales in a quarter. In fact, its sales increased 990% year-over-year last quarter, growing to $2.75 million. Through the first nine months of the year, revenue growth was more muted, though still very strong, at 94%.

That said, Solar Alliance recorded a relatively small net loss of $220,000 in Q3. And the company maintains liquidity reserves above $1 million, so it appears likely to easily survive for another year without any issues. Solar Alliance also has an order backlog of $2.5 million, suggesting that the demand for its products will be strong moving forward. 

SunHydrogen (HYSR)

SunHydrogen (OTCMKTS:HYSR) stock is arguably the risk name on this list. The company does not yet generate any revenue and costs a mere 2.6 cents per share. That price is a clear signal that the demand for its shares has yet to materialize to any substantial degree. The company doesn’t yet have a commercially available product either. 

On the other hand, SunHydrogen has built an attractive narrative around its yet-to-be-commercialized solar-powered nanoparticle system that separates hydrogen from water by mimicking photosynthesis. If its system is  successful, it will deliver hydrogen for renewable energy and fuel cells. Hydrogen energy is receiving a lot of attention of late as many companies are building green hydrogen plants. Hydrogen is getting closer and closer to becoming a widely used form of energy. 

Investing in SunHydrogen is essentially a bet on its ability to commercialize its technology. The fact that it recently received $45 million from an investor suggests it isn’t far from that goal. 

Orbital Infrastructure Group (OIG)

Orbital Infrastructure Group (NASDAQ:OIG) stock represents a company attempting to build utility-scale solar operations through acquisitions. It now trades at 16 cents per share and can more than double. 

Orbital Infrastructure Group basically quadrupled its revenue  last quarter to $100 million, compared with the same period a year earlier.  The company is quick to acknowledge that the impressive growth was due primarily to acquisitions, although it did grow by increasing the revenue of all of its existing businesses as well. 

The company is attempting to turn itself around. In the first nine months of 2021, the firm recorded $41.9 million of revenue, leading to a loss of $36.3 million. 

This year the company recorded $263.9 million of revenue during the same period, resulting in a $211 million net loss. Thus, the ratio of revenue to losses has improved as a consequence of the company’s acquisitions.

The stock is worth buying because the company has a chance to tremendously grow its electricity generation. 

ReneSola (SOL)

ReneSola (NYSE:SOL) stock has been relatively flat throughout 2022. That is quite an achievement for such a young, growing firm during this economy. The company constructs megawatt-scale solar arrays across the globe. ReneSola’s strong performance and cheap price should really pique the attention of investors. 

ReneSola also boasts very attractive fundamentals. The company reported that its sales soared 86% year-over-year to $28.9 million of sales in Q3.  Additionally,  its revenue came in above the high end of its guidance. 

Perhaps equally importantly, ReneSola reported $2.96 million of net income. That’s a positive sign as the company has gone above and below breakeven over the past several quarters. ReneSola had approximately $123 million of liquid assets at the end of the third quarter. Given that it makes money, its solvency is not in question whatsoever. 

I would argue that the only reason SOL stock isn’t currently trading several dollars higher is the macro environment. 

SPI Energy (SPI)

SPI Energy (NASDAQ:SPI) is a conglomerate of three firms; SolarJuice, SPI Solar, and Phoenix Motorcars. It’s somewhat unique, but SPI Energy believes it is significantly undervalued relative to its peers in the solar and EV industries.  The company also believes that its unique structure gives it significant advantages. 

SPI Energy is primarily a solar power firm. Its SolarJuice division is responsible for solar installations in both the former Staples Center and Sacramento King Stadium. In 2021, the company reported $162 million of revenues while nearly breaking even. 

SPI has also invested heavily in selling independently produced solar energy into the power grid in both the U.S. and Europe. SPI Energy has invested more than $100 million in that initiative so far. 

SPI Energy also has an EV brand called Phoenix Motorcars. The division has been retrofitting commercial vehicles with EV drivetrains since 2003, deploying over 100 vehicles during the period. It is also developing a line of light-duty EVs called EdisonFuture. 

Gevo (GEVO)

Gevo (NASDAQ:GEVO) is developing sustainable aviation fuel. The stock trades for under $2 currently but has the potential to soar in the coming years. Gevo is breaking ground on a large-scale production facility and is among the early contenders to carve out a leading position in the sustainable aviation fuel sector. 

Gevo was selected for a $30 million grant from the U.S. Department of Agriculture (USDA) in September. Much of its success is a result of the company’s ability to persuade influential airlines of its future commercial viability. 

To that end, Gevo secured a deal to provide 5 million gallons of sustainable aviation fuel to Qatar Airlines annually beginning in 2028. Similarly, Gevo will deliver 6 million gallons of sustainable aviation fuel to Iberia Airlines beginning in 2028.  

Gevo is really just getting started. It reported $0.3 million of revenue in Q3 leading to an operating loss of $43.7 million. That said, it maintains more than $500 million of liquidity and has the potential to become very valuable in a few years. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.