In this article, we explore the 10 Best Energy Storage Stocks to Buy According to Hedge Funds.
The events in the Middle East are ushering a generational growth phase into the global energy storage market. According to Kevin Zhang, a battery storage industry analyst and founder of Energy Storage AC Club, the recent geopolitical conflict, which led to the closure of the Strait of Hormuz shipping route, is a trigger for a “$150B Storage Supercycle.” Zhang argued that battery energy storage systems (BESS) have “graduated from ‘nice-to-have’ to strategic national infrastructure” and is now the “ultimate energy insurance” for governments, corporations, and investors.
This was also the key takeaway from Fitch Ratings’ analysis of the US-led hostilities in Iran. The Iran conflict is shifting battery-sector upside away from passenger EVs and toward BESS, plus broader electrification uses, noted Fitch. Why Fitch sees the conflict’s repercussions that way is because oil and LNG supply shocks make energy security more urgent for many countries. The firm added that the strongest incremental demand driver for BESS is likely to be overseas investment in “solar plus battery storage,” especially in energy-importing emerging markets with less reliable power systems.
“Demand for BESS should rise even if the Iran conflict is resolved shortly, as the related gas disruptions make electricity supply more expensive and less stable in markets reliant on gas-fired generation, and energy security becomes a more immediate policy priority,” Fitch stated.
However, even before the Iran conflict, the sector was already scoring some important milestones. In the US, for instance, battery energy storage installations surpassed 57 GWh in 2025, a 29% year over year growth, according to the Solar Energy Industries Association. SEIA anticipates the installations to reach 70 GWh this year, which will equate to about $25.2 billion in capital investment. Globally, InfoLink Consulting projects energy storage system installations to reach 353 GWh this year, and that China, the US, and Europe will continue to dominate.
Given this reality, this article highlights some of the best energy storage stocks to buy, especially those with substantial interest from hedge funds.
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Our Methodology
To compile our list, we used financial media sources, including CNN and Bloomberg, as well as energy storage-focused ETFs such as the iShares Energy Storage & Materials ETF and the Global X Lithium & Battery Tech ETF, to build an initial pool of U.S.-listed energy storage companies. From this pool, we filtered for stocks with a positive analyst consensus upside potential as of April 9, 2026. We also considered hedge fund sentiment for each stock, using Q4 2025 holdings data from Insider Monkey’s 13F database. The final list is ranked in ascending order based on the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Energy Storage Stocks to Buy According to Hedge Funds
10. T1 Energy Inc. (NYSE:TE)
Number of Hedge Funds Holding: 12
Stock Upside: 103.84%
T1 Energy Inc. (NYSE:TE) is one of the best energy storage stocks to buy according to hedge funds. On March 31, BTIG analyst Gregory Lewis reiterated a Buy rating on T1 Energy Inc. (NYSE:TE) with a $7 price target. The decision came after T1 Energy shared its Q4 FY2025 earnings.
Lewis noted that T1 Energy’s Q4 earnings sent its stock down 15% in the week during which it shared the report. The trigger of the selloff, noted Lewis, was a quarterly EBITDA loss of roughly $51 million, which outweighed the $12 million recorded in Q4 FY2024.
On why he reaffirmed his stance on the stock despite the disappointing earnings, Lewis said the losses were not a sign that the business is breaking down. Instead, they were largely the result of one-time costs tied to achieving Foreign Entity of Concern (FEOC) compliance under the One Big Beautiful Bill Act. This is a requirement companies must meet to qualify for IRA solar tax credits. To be compliant, T1 Energy made three costly but deliberate moves during the quarter: it transferred Trina Solar intellectual property to a Singaporean distributor, purchased certified non-FEOC solar cells to cover part of its 2026 module production, and paid down Trina-linked debt through new capital raises, the analyst noted.
The analyst also acknowledged that tariff uncertainty may weigh on interim merchant sales during the construction phase of T1 Energy’s flagship G2 Austin manufacturing facility. Though the analyst is aware that the company is working toward an April close for the remaining $350 million in Phase 1 funding for that project.
T1 Energy Inc. (NYSE:TE) is a renewable energy manufacturing company that provides solar modules and energy storage supply chain solutions. It develops and sales battery energy storage systems designed for utility-scale, commercial, and industrial applications. Its storage business utilizes advanced cell architectures, such as SemiSolid technology, intended to improve the safety and density of long-duration storage products.
9. Energy Vault Holdings, Inc. (NYSE:NRGV)
Number of Hedge Funds Holding: 14
Stock Upside: 41.07%
Energy Vault Holdings, Inc. (NYSE:NRGV) is one of the best energy storage stocks to buy according to hedge funds. On March 24, Energy Vault Holdings, Inc. (NYSE:NRGV) acquired the McMurtre Battery Energy Storage System from Belltown Power. The McMurtre BESS is a 175 megawatt (MW) or 350 megawatt-hour (MWh) project near Dallas, Texas.
The project sits within the ERCOT North market, one of the fastest-growing power demand zones in the US, Energy Vault detailed in the release. It added that the project already has an executed small generator interconnection agreement and full site control, which significantly de-risks the path to construction.
The company said it will deploy its latest B-VAULT AC Technology Platform 3 at the site. This is Energy Vault’s most advanced system to date that is engineered for rapid deployment and high availability in ERCOT grid conditions. The company anticipates the project’s commercial operations to commence by December 2027, and that the Notice to Proceed should be ready in Q4 2026. Once the project reaches Ready-to-Build status, Energy Vault will contribute it to its Asset Vault investment platform, which is a fully consolidated subsidiary dedicated to owning and operating storage assets globally.
Over the project’s lifetime, Energy Vault projects it to generate $350-$375 million and above in total revenues, or roughly $15-$20 million annually. The company is currently evaluating investment-grade offtake structures to secure bankable, front-loaded revenue.
Energy Vault Holdings, Inc. (NYSE:NRGV) is an energy storage technology company. It specializes in gravity-based and hybrid energy storage solutions designed to support grid-scale applications.