This has been a bad year for clean energy stocks. It has destroyed many investors’ hopes of a shift to green energy worldwide. Interest rates remain high, pushing investors to look for better returns in other segments. As a result, clean energy is having a difficult time finding relevance to investors. 

While clean energy still holds promise in the future, investors want quicker returns. Those profits are not forthcoming in 2024. Clean energy companies are delivering dismal earnings, causing investors to abandon them.  

A major driver of this trend is falling consumer demand. For instance, a solar system is a significant investment for most homeowners. Installation can cost up to $27,000 before investments. 

That means that most solar installations need a loan. The high interest rates make investing in solar too expensive for most people. Many people bought into solar energy when rates were low, but those rates are no longer available.  

As people wait for interest rates to drop, it has hurt many solar stocks. Until interest rates come down, clean energy will continue to dip.  With no end in sight for the Federal Reserve rate hike, the trend will continue into 2025 and beyond.

Based on the facts above, divesting from clean energy would be a great move. Next year is shaping into another disappointing year for the sector. If you do not want to be the one holding the bag, remove the three stocks from your portfolio by 2025. 

Here is a close look at why these three clean energy stocks will be the worst performers in 2025. 

Plug Power (PLUG)

Plug Power (NASDAQ:PLUG) is working to advance hydrogen fuel cell technology. Since its founding, it has come up with many commercial products. Some notable examples are the GenSure and the GenDrive hydrogen-based batteries. 

Despite its many achievements, Plug Power continues to report losses. The losses have increased in the past three years, growing almost every quarter.  

A major reason for the rising losses is that hydrogen fuel cars are not yet competitive. For example, producing hydrogen is only efficient up to 75%. During transportation, another 10% gets lost. That is in the most optimal conditions, and losses could be higher.

Once the hydrogen goes into the car, it generates electricity at an efficiency of 60%. The whole process is thus inefficient compared to other clean energy sources. For example, converting wind power to electricity leads to lower losses.

Hydrogen energy cannot compete in the market without large subsidies. So far, governments worldwide have not given the industry those subsidies. Most of them have instead gone to solar and wind.

Plug Power stock has dipped in 2024, losing 45% of its value this year. 

The stock price trend and the existing high interest rates show that PLUG is not attractive. Investors lack interest in the stock, and you should sell it, too. Otherwise, you could face huge losses in the coming months and 2025.

Sunnova Energy (NOVA)

Sunnova Energy (NYSE:NOVA) works on commercial and home solar installations. It also allows its customers to use solar to charge their electric vehicles.

NOVA stock rose quite high after Covid-19 lockdowns in 2022 and early 2023. By the end of 2023, its net income dropped by 158% compared to the previous year.

Adding to its problems, the company has been in a prolonged period of negative cash flow. As demand for new systems has fallen because of high interest rates, its future is uncertain. The stock has continued to fall amid the poor financial results. This year, NOVA lost 51% of its value. 

NOVA is a stock in decline. This is especially true when considering interest rates and the company’s financial situation. It would be wise to consider selling it by 2025. it could save your investment from going down the drain. 

JinkoSolar (JKS)

JinkoSolar (NYSE:JKS) makes solar-related products, including solar modules, solar cells, silicon wafers and silicon ingots. It markets its products worldwide. 

The company saw its profitability drop dramatically. For example, in its last quarterly results, gross profit fell 35% year over year. Meanwhile, the operating loss margin was 1.5%, compared to 5.2% in the same period in 2023. 

The first signs of trouble began in the fourth quarter of 2023. At the time, JinkoSolar missed earnings estimates, sending investors reeling. It reported an earnings per share of $1.21, against an expected $2.32. 

Declining margins also signal a bleak future for the company’s growth. 

JKS stock has been in free fall in 2024, sliding 40% year to date. The company faces declining financial performance and high interest rates. As a result, JKS stock’s future is not promising. It should be one of the stocks to remove from your portfolio by 2025.

On the date of publication, Joel Lim 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.