Table of Contents
Investing in wind energy involves putting money into companies or funds focused on some aspect of the wind energy industry. Individuals can invest in the wind energy industry directly by investing in companies that operate wind farms or indirectly by putting money into companies that manufacture wind turbines or components.
Wind energy is one of the cornerstones of the renewable energy industry, providing a cost-effective source of electricity generation. As more attention is paid to the effects of climate change and the need to reduce dependence on fossil fuels, many investors are turning to wind energy investments.
Key Points
• Wind energy investments put money into companies or funds that make, operate, or support wind power projects.
• Wind power is a growing segment of electricity production in the U.S., and is divided into two main market segments: distributed wind and utility-scale wind.
• Investors can get exposure to wind energy through stocks, mutual funds, exchange-traded funds (ETFs), and corporate or government bonds.
• In addition to environmental benefits, wind energy investments have the potential to offer steady long-term performance, given the length of energy contracts and renewability of the resource.
• Wind energy investments also involve risk from technology uncertainty, competition from other energy sources, and possible community opposition to projects.
What Are Wind Energy Investments?
Wind energy investments are financial stakes in companies and projects focused on generating electricity through wind power. Wind turbines, sometimes called windmills, harness this power by collecting the energy created by wind and converting it into electricity. Wind energy is often divided into two market segments, distributed wind and utility-scale wind.
Distributed Wind Market Segment
The distributed wind market is usually made up of smaller-scale projects, where wind turbines are used to generate electricity for homes, businesses, and even entire communities.
Utility-Scale Market Segment
Utility-scale wind energy, in contrast, consists of turbines that generate more than 1 megawatt of energy. The power generated by utility-scale wind projects is added to the electrical grid. Companies involved in utility-scale wind energy draw the most interest from individual investors.
Utility-scale wind energy projects can be land-based, where a group of wind turbines is grouped in a wind farm on land. Offshore wind farms built off the coast are another type of utility-scale wind energy, taking advantage of powerful ocean winds to generate large amounts of energy.
Individuals can invest in wind energy by putting money into companies involved in some portion of the wind energy industry or, more rarely, by investing in specific wind energy projects.
Increased Popularity
Wind energy and other socially responsible investments have grown in popularity in recent years as the focus on the need for sustainable energy grows. Because they rely on wind power rather than fossil fuels, these investments and projects cut down on emissions and pollution.
Further, wind energy is becoming more common because of declining costs, technological improvements, and government tax incentives. In 2025, wind power supplied about 10% of all energy in the United States and totaled 464,000 gigawatt-hours of power, a 3% increase from 2024.
3 Ways to Invest in Wind Energy
Investors can invest in wind energy by putting money into the stocks and bonds of companies in the wind energy industry. Mutual funds and exchange-traded funds (ETFs) with wind energy or renewable energy-focused strategies are also potential investment vehicles for those interested in adding wind energy to their portfolio.
Regardless of the type of investment, investors need to remember that many companies and funds are diversified, meaning that they may be involved in sectors other than wind energy. For investors wanting to invest in purely wind energy companies or funds, it’s essential to do research into potential investments.
1. Stocks
Investors can put money into various publicly traded companies involved in some aspect of the wind energy industry. These companies may include wind farm operators, which own and operate wind turbines to produce energy for customers and end-users, and manufacturers of turbines and other components of wind farms. Some utility companies may also be an option for wind energy investors.
Some companies involved in the wind energy industry include:
• Orsted: This Denmark-based power company is the largest developer of offshore wind power in the world.
• Vestas Wind Systems: Also based in Denmark, it is one of the world’s largest manufacturers of wind turbines.
• GE Vernova: This U.S.-based company was spun off from General Electric’s main business in 2024, specializing in generation, transfer, orchestration, conversion, and storage of electricity.
• NextEra Energy: This American energy company has 119 wind farms in operation.
• Alliant Energy: This American energy company owns and operates wind farms across Wisconsin, Minnesota, and Iowa.
2. Mutual Funds and ETFs
Investors who don’t want to pick individual stocks to invest in can always look to mutual funds and exchange-traded funds (ETFs) that provide exposure to wind energy companies and investments. A growing number of index funds invest in a basket of companies involved in the wind energy industry.
These funds allow investors to diversify their holdings by investing in one security. However, not all wind energy funds follow the same criteria and may focus on different aspects of wind energy. These funds may also have holdings in traditional energy and utility companies that are only partially involved in the wind energy industry.
3. Bonds
Wind energy-related bond investments are another option investors may consider. The bonds of corporations involved in wind energy business practices can be a good option for investors interested in fixed-income securities. Green and climate bonds are bonds issued by companies to finance various environmentally friendly projects and business operations.
Additionally, government bonds used to fund wind energy projects can be an option for fixed-income investors. These bonds may come with tax incentives, making them a more attractive investment than traditional bonds.
Recommended: How to Buy Bonds: A Guide for Beginners
Benefits and Risks of Investing in Wind Energy
The trend of investing in renewable energy sources such as wind energy is rising as the public becomes more aware of the environmental and economic benefits of doing so. However, before investing in this sector, there are benefits and risks to consider.
Benefits
A benefit of investing in wind energy is that it’s a renewable resource, so it will never run out as long as the sun shines and the wind blows. Additionally, wind energy is cost effective and tends to be one of the lowest-priced energy sources. And because the power generated from wind farms is sold at a fixed price over a long period of time, it may provide reliable returns for investors — though there are no guarantees.
Wind power is also a clean energy source, meaning it doesn’t produce emissions that can harm the environment the way fossil fuels do. This can be attractive for investors focused on building a portfolio of green investments.
Risks
One primary risk of investing in wind energy is that it’s a relatively new technology, so there is little data available on its long-term performance. Wind energy and all renewable energy sources must compete with traditional energy sources such as oil, coal, and natural gas. Because of this, the long-term outlook for wind energy investments may change. Wind energy investments may be harder to stomach for investors who aren’t comfortable with the risk of newer technologies.
Additionally, wind energy projects may get pushback from communities where companies want to operate.
How to Build a Wind Energy Portfolio
If you’re ready to start investing and want to build a portfolio of wind energy investments, you can follow these steps.
Step 1: Open a Brokerage Account
You will need to open a brokerage account and deposit money into it. Once your account is funded, you can buy and sell stocks and other securities.
Step 2: Pick Your Assets
Decide what type of investment you want to make, whether in a company’s stock, a wind energy-focused ETF or mutual fund, or bonds.
Step 3: Do Your Research
It’s important to research the different companies and funds and find a diversified selection that fits your desires and priorities.
Step 4: Invest
Once you’re ready, make your investment and then monitor your portfolio to ensure that the assets in your portfolio have a positive social and financial impact.
It’s important to remember that you should diversify your portfolio by investing in various asset classes. Diversification may help to reduce your risk and increase growth potential.
The Takeaway
Wind energy is a renewable resource that’s becoming increasingly popular and is expected to grow significantly in the coming years. This makes it a potential growth investment for those looking to diversify their portfolios and reduce their reliance on traditional energy sources.
While the outlook is promising, investments in wind energy may not always produce positive returns. When considering a wind energy investment, it’s important to do your research and understand the risks and rewards involved with this nascent industry.
Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.
Opening and funding an Active Invest account gives you the opportunity to get up to $3,000 in the stock of your choice.¹
¹The probability of a member receiving $3,000 is 0.028%. If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Members must fund their account with a minimum of $50.00 to qualify. The probability percentage is subject to decrease. Members are only eligible for the Stock Award promotion upon opening their first brokerage account; subsequent cash brokerage accounts are ineligible for the promo, including for members with multiple accounts.
FAQ
Is wind energy a good investment?
Wind energy may be a good long-term investment depending on an investor’s portfolio goals and risk tolerance. Wind energy investments may benefit from a growing global demand, low operating costs, and policy support. Wind projects also tend to have long lifespans which may translate into a steady cash flow. However, wind energy is a relatively young industry with operational challenges, so returns are never guaranteed.
Why do people invest in wind energy?
Investors are often drawn to wind energy because it’s renewable and cost-effective. It’s a rapidly growing sector of energy production that may offer the potential for stable, long-term returns. However, wind energy faces hurdles such as high upfront costs and infrastructure challenges, so it is not without risk.
What are the risks of investing in wind energy?
The main risks of investing in wind energy are high upfront capital expenditures and operational challenges such as mechanical failures and expensive maintenance. Another major risk is intermittency, which is the fact that wind is not constant, so power generation can stop or slow down when the wind does.
Photo credit: iStock/XtockImages
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.
Exchange Traded Funds (ETFs): Before investing in Exchange Traded Funds (ETF), always read the fund's prospectus. It contains important information about the fund’s objectives, risks, and fees. You can get a prospectus from the fund company’s website or by emailing our customer service at [email protected].
Mutual Funds (MFs): Investors should read and carefully consider the information contained in the prospectus, which contains the Mutual Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or SoFi's customer service at: 1.855.456.7634. Mutual Funds must be bought and sold at NAV (Net Asset Value); unless otherwise noted in the prospectus, trades are only done once per day after the markets close. Investment returns are subject to risks. Shares may be worth more or less their original value when redeemed. The diversification of a mutual fund will not protect against loss. A mutual fund may not achieve its stated investment objective. Rebalancing and other activities within the fund may have tax implications.
Investment Risk: Diversification can help reduce some investment risk, but cannot guarantee profit nor fully protect in a down market.
Options involve substantial risk of loss and the possibility an investor may lose the entire amount invested. Before starting options trading, investors should be familiar with the Characteristics and Risks of Standardized Options . TTax implications with options should be considered. Consult your tax advisor to understand any impacts to your taxes.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SOIN-Q126-153