Solar, wind & co. with a breakthrough in 2025: Is now the time to buy Nordex, JinkoSolar, or RE Royalties stock?

The industry is booming, but stocks are struggling, except for Nordex

The science magazine "Science" has declared the global boom in renewable energy the "Breakthrough of the Year 2025." The award was explicitly not given to a single laboratory innovation, but to a systemic tipping point in the real world. In an accompanying editorial, editor-in-chief Holden Thorp emphasizes that 2025 was the first year in which more electricity was generated from renewable sources than from coal worldwide. He says this is the result of years of cost and scale effects in photovoltaics, wind power, and battery storage, and a sign that electricity generation can be decarbonized faster than many had long assumed. The award is also a political and economic statement: the competitive advantage is shifting to where production, grid expansion, financing, and regulation most consistently enable expansion.

However, stocks in the sector often struggled in 2025. Nordex shares are among the few winners, gaining around 150% last year. Most recently, the German wind turbine manufacturer received a boost from a "Buy" recommendation by Kepler Cheuvreux. However, the price target of EUR 32 is only slightly above the current level of EUR 29.90. In the update, the experts significantly raised their revenue and profit estimates for 2026. They expect operating profit to be well above the average of their colleagues. They also expect a dividend payment.

RE Royalties: 16% dividend

RE Royalties is a real dividend gem in the renewable energy sector. The Canadian company has successfully transferred the license financing model from the raw materials industry to the renewable energy sector. Project developers receive capital without having to give up shares. In return, RE Royalties receives interest on the loans and a small share of future revenues. Revenue from the projects is often secured by 20- to 40-year power purchase agreements, making it easy to plan. RE Royalties shares are also listed on the Frankfurt Stock Exchange, and trading volumes are currently picking up.

At the end of 2025, RE Royalties provided an operational update, which was very positive. The short-term deal pipeline is very well filled with around USD 50 million for new investments in solar, wind, storage, and distributed generation projects. The announced transactions are spread across the US, the Maldives, and Canada and include both existing and new customers. Management emphasizes disciplined capital allocation and risk management in order to expand the asset base and scale recurring revenues across a diversified portfolio. At the same time, the Company is strengthening existing cash flow sources. A secured loan of USD 3 million to a PowerBank Corp. subsidiary was extended by one year, the interest rate was raised to 12% p.a., and the royalty was increased to 0.80%.

On the financing side, RE Royalties reports the extensive repayment of maturing Series 1 green bonds totaling approximately USD 10 million. Only a final installment of USD 300,000 is due in the first quarter of 2026. The Company points to its five-year green bond program and a "dark green" rating of the green bond framework by S&P Global Ratings as a seal of quality for the climate impact of the financed projects.

Important for shareholders: A dividend of CAD 0.01 per outstanding share will again be paid for the fourth quarter of 2025. Payment will be made on January 21, 2026. This means that RE Royalties will have distributed a total of CAD 0.04 to shareholders in 2025. Based on the share price of CAD 0.25, this corresponds to an impressive return of 16%. In the future, the dividend will no longer be distributed quarterly, but annually. This is intended to increase financial flexibility for additional investment opportunities. There is currently no apparent reason for a dividend reduction.

JinkoSolar: Strong second half, but visibility difficult

JinkoSolar's share price has had a turbulent year. On Friday, the Chinese solar group's stock was trading at USD 28, barely higher than at the beginning of 2025. In April 2025, the price briefly slipped below USD 14. Since then, it has doubled. From UBS's perspective, this means that the price potential has been exhausted for the time being. Although analysts have raised their price target from USD 20, they see the fair value at USD 25, slightly below the current level. They therefore rate the solar stock as "Neutral." In its reasoning, UBS points to the significant price strength of recent months. According to experts, the competitive and margin pressure that has persisted in the industry for years is unlikely to change for the time being. This limits the visibility of profitability for Jinko and the solar sector as a whole.

Technologically, Jinko still had some good news to report at the end of the year. A certified power conversion efficiency of 34.76% was achieved for a perovskite-silicon tandem cell, as verified by the Chinese National PV Metric & Testing Center. The Company attributes this progress to a series of its own process and material innovations in perovskite and tandem technology. In a global comparison, Jinko is thus just behind Longi, which has held the world record for perovskite tandem cells at 34.85% since April 2025. In addition, JinkoSolar points to another milestone. A world record of 27.79% was reported for N-type TOPCon solar cells. This was verified by the German ISFH. The efficiency was made possible by an ultra-thin silicon oxide tunnel layer, doped polysilicon passive contacts, and further optimizations in passivation, optical losses, and metallization.

Despite industry growth, renewable energy stocks are struggling. However, this also creates opportunities. One example of this is RE Royalties. The Company has a proven business model that has been successful for many years and offers a dividend yield of 16%. The stock is slowly gaining traction in Germany. JinkoSolar is the largest solar company, but overcapacity and margin pressure make forecasts difficult. Nordex shares have had a great run. But now the upside potential is becoming more limited.