Amid concerns over a green-tech investment bubble, Sanford Bernstein analysts issued a report on Tuesday, C-Net reported.
Consistently high fossil fuel prices and environmental regulations mean that alternative energy technology companies are poised for growth in the coming years, the analysts said.
Though renewable stocks might not be so hot right now, there's no end in sight to increasing oil and gas prices and the electricity generation business, which relies heavily on fossil fuels, will also see higher prices.
Also, coming federal regulations to curb greenhouse gas emissions will significantly affect the economics of the business.
Renewable energy technology providers and utilities with expertise in nuclear power are set to benefit from high fuel costs and impending regulations, C-Net reported.
Right now, solar and wind represent just about 2 percent of power generation but are expected to grow drastically as mandatory targets are set.