What are the energy storage stocks? Investment guide to popular concept stocks in 2026

The global energy structure is accelerating its transformation, and energy storage stocks have become a focal point for capital markets. From the widespread adoption of electric vehicles to large-scale deployment of renewable energy sources like wind and solar power, energy storage technology is evolving into the “heart” of every energy system. So, which energy storage stocks are worth paying attention to? Which companies in the U.S. and Taiwan markets are leading in this field? This article will provide a detailed analysis of the core opportunities for energy storage stock investments by 2026.

Why Are Energy Storage Stocks Becoming a New Investment Hotspot?

The rise of energy storage concepts is driven by the dual forces of global climate policies and energy transition efforts.

According to the United Nations Intergovernmental Panel on Climate Change (IPCC), to keep global warming within 1.5°C above pre-industrial levels, countries must halve their carbon emissions by 2030 and achieve net-zero emissions by 2050. To reach this goal, nations are investing heavily in developing renewable energy sources like wind and solar power.

However, renewable energy faces inherent challenges—namely, output instability. For example, in the UK, wind turbines contributed 32.4% of electricity in the first three months of 2023, but during periods of low electricity demand at dawn, electricity prices even turned negative to incentivize consumption. As a result, energy storage systems have become an essential component for the widespread application of new energy sources. Moreover, since this field is primarily driven by government policies, energy storage stocks benefit from policy support and have strong predictive investment characteristics.

According to forecasts by energy research firms BloombergNEF and DNV, by 2030, the cumulative global energy storage capacity (excluding pumped hydro) will surpass the terawatt-hour (TWh) mark, with most of it supplied by lithium-ion batteries. This indicates that over the next four years, the industry represented by energy storage stocks will face sustained and robust demand growth.

How Are Energy Storage Stocks Categorized?

Understanding the energy storage industry chain is the first step in investing in energy storage stocks. From upstream to downstream, related stocks can be divided into four main categories:

Battery Manufacturers

Batteries are the core of energy storage systems. Companies developing lithium batteries, solid-state batteries, sodium-ion batteries, and other technologies are among the most technically barrier-rich in energy storage stocks. Leading companies include New Strong (4931), Changyuan Technology (8038), etc. Their advantage lies in directly benefiting from increased shipment volumes, but they face fluctuations in raw material prices and international competition pressures.

System Integrators

These companies not only supply batteries but also integrate inverters, battery management systems, energy management systems, etc., delivering complete energy storage solutions. Examples include Huacheng (1519), Yali (1514), and ZTE Electric (1513). As system integrators, they hold client relationships and tend to have more stable profit models.

Power Equipment and Renewable Energy Integration

This segment includes companies that assist in integrating energy storage systems into the grid, providing transformers, distribution panels, and other basic equipment. Representative companies include ZTE Electric (1513), Huacheng (1519), and Yali (1514), which are downstream participants in the energy storage industry chain.

Materials and Component Supply Chain

Upstream raw materials include cathode materials (nickel, cobalt, manganese, lithium iron phosphate, etc.), electrolytes, separators, etc. Downstream, there are battery management systems, cooling equipment, and power conversion systems. Formosa Plastics (6505, investing in electrolytes) is a representative stock in this category. This segment has high technical barriers but is heavily influenced by international raw material market trends.

What Are the Notable Energy Storage Stocks? An Overview of U.S. and Taiwan Markets

Below is a selection of well-known energy storage-related stocks based on market capitalization, stock price, and recent performance:

In-Depth Analysis of Leading U.S. Energy Storage Stocks

Enphase Energy — Leader in Solar Microinverters

Enphase Energy (NASDAQ: ENPH) is a key supplier of solar microinverters and energy storage systems, often regarded as a representative U.S. energy storage stock. Since 2025, influenced by energy policy adjustments, its stock price has fallen sharply to about $36.98, with a P/S ratio between 3.2 and 3.7.

Financially, in 2024, revenue was $1.46 billion. For 2025, forecasts vary: conservative estimates project around $1.48 billion (flat year-over-year), while optimistic forecasts exceed $2 billion. The latest earnings report shows Q2 revenue of $363 million, beating expectations, but Q3 guidance is only $330–370 million, indicating short-term demand softness.

Note that U.S. residential solar subsidies may end by year’s end, posing a significant risk to Enphase’s demand. Firms like TD Cowen have downgraded the stock to Hold, with a target price of $45–$55. If U.S. monetary policy loosens and subsidies continue, revenue could rebound. Currently, investors should adopt a cautious stance and monitor as a medium- to long-term candidate.

Generac Holdings Inc. — Leader in Backup Power Equipment

Generac Holdings Inc. (NYSE: GNRC) is a leading manufacturer of residential and industrial backup power equipment, including home and industrial generators. In its Q2 report, adjusted EPS was $1.65, well above expectations, with a 22% quarter-over-quarter increase; revenue of $1.06 billion also exceeded estimates.

The market expects full-year 2025 EPS to reach $7.54, indicating steady growth potential. The average target price among analysts is $206.67, about 15% above the current stock price of $179.50, suggesting a relatively clear upside.

NextEra Energy — Largest Utility in the World

NextEra Energy (NYSE: NEE) is the world’s largest publicly traded utility by market cap, owning regulated Florida Power & Light and focusing on wind, solar, and energy storage through NextEra Energy Resources. In 2024, revenue was approximately $24.75 billion, with a total generation capacity of 73 GW, making it a benchmark in green energy stocks.

In Q2 2025, adjusted EPS was $1.05, up about 9% year-over-year, exceeding expectations. Its renewable energy segment’s net profit increased significantly, with 3.2 GW of new renewable and storage projects (over 1 GW for data centers) added, and total capacity surpassing 10.5 GW, demonstrating leadership in AI and data center energy solutions.

Analysts are bullish, with MarketBeat’s average target at $84 (up 15.7%) and TipRanks’ target at about $86.20 (potential ~20% upside). This stock’s growth momentum is relatively clear.

Fluence Energy — Global Leader in Storage Solutions

Fluence Energy (NYSE: FLNC) is a leading global provider of energy storage solutions. Launched in 2018 as a joint venture between Siemens and AES, leveraging their scale in storage. Headquartered in Arlington, Virginia, it operates in 47 markets worldwide.

Q3 2025 results show EPS of $0.01, exceeding expectations, but revenue plunged to $603 million, well below the forecast of $770 million, causing a stock drop of over 13%. Gross margin compressed to 15.4%, mainly due to delays in U.S. capacity expansion and supply chain issues.

However, management maintains the full-year revenue target of around $2.7 billion and expects existing orders to convert into actual revenue in 2026. While short-term pressures exist, the long-term outlook remains promising.

EnerSys — Leader in Industrial Energy Storage Solutions

EnerSys (NYSE: ENS) is a global leader in industrial energy storage solutions, headquartered in the U.S., with regional offices in Europe and the Middle East, employing over 11,000 staff across more than 100 countries. Its main products include energy systems, power batteries, specialty batteries, chargers, and power supplies.

Q1 2025 results were strong: adjusted EPS of $2.08, beating expectations, with revenue of $893 million. Market cap is about $3.86 billion, with a P/E ratio of only 11.8 and a dividend yield of nearly 1%, making it attractive for conservative investors. This type of energy storage stock combines growth and defensive qualities.

Leading Taiwan Energy Storage Stocks

Delta Electronics — Global Power Management Pioneer

Founded in 1971, Delta Electronics is a top-tier provider of switching power supplies, offering battery management and thermal solutions worldwide. In Q2 2025, revenue reached NT$124.035 billion (up 20%), a quarterly record, with net profit of NT$13.948 billion (up 40%), and EPS of NT$5.37, a new high.

Gross margin reached 35.5%, operating margin 15.1%, both significantly better than previous quarters and years, reflecting strong performance in high-margin products and process optimization. The company plans to increase R&D and expand U.S. capacity in the second half, with clear growth momentum.

Tatung — Cross-Field Energy Solutions Group

Founded in 1956, Tatung started as an electric motor manufacturer and has evolved into a comprehensive enterprise with business units in motor systems, smart energy, and smart living. Its products include industrial motors, air conditioners, and energy solutions.

In Q2 2025, consolidated revenue was NT$15.6 billion (up 7.4%), but due to costs and exchange losses, EPS was NT$0.69, down from last year; for the first half, EPS was NT$1.23, down 8%. The company maintains a solid financial structure, reasonable debt levels, and paid a cash dividend of NT$2.2 per share (about 4.2% yield), attractive for long-term investors.

Tatung is actively pursuing AI data center and smart energy opportunities through acquisitions like NCL Energy and strategic partnerships with Hon Hai, with high growth expectations for energy storage.

Key Considerations for Investing in Energy Storage Stocks

Risk Awareness

Investors should carefully select energy storage stocks, as some companies lack strong technological competitiveness, especially new entrants with weak fundamentals. If a company fails to reach profitability over the long term or experiences declining revenue, its stock price can be severely impacted. Regular assessment of fundamentals and technical indicators is essential.

Policy Sensitivity

While the outlook for energy storage stocks is generally positive, policy changes can significantly influence performance. Adjustments in government subsidies, energy planning, or regulatory frameworks—such as the potential termination of U.S. residential solar subsidies—may quickly alter individual stock prospects.

Stock Selection Tips

• Focus on industry chain position: upstream battery raw material suppliers face raw material price volatility; midstream system integrators tend to be more stable; downstream equipment providers have controllable growth.
• Compare financial quality: gross margins, cash flow, R&D investment reflect competitiveness.
• Evaluate policy dependence: companies driven mainly by subsidies carry higher risks; those driven by market demand tend to be more resilient.
• Monitor supply chain risks: chip shortages, raw material prices, and logistics issues can impact delivery and profitability.

Conclusion: Seize Investment Opportunities in Energy Storage Stocks

The transition to clean energy relies heavily on energy storage technology, ensuring continued investment from countries worldwide in the coming years. Major policy announcements or industry milestones can trigger market speculation in energy storage stocks. Investors should seize these opportunities to participate and profit.

However, as with many high-tech sectors, not all R&D efforts in energy storage will succeed in commercialization or profitability. When fundamentals or technological prospects change, disciplined execution and risk management become crucial. By thoroughly researching the industry chain and selecting fundamentally solid energy storage stocks, investors can make wise investment decisions.