Rising concern about climate change and renewable energy growth targets has created an uptick in non-oil energy investment.
Back-to-back natural disasters cost the Australian economy $2.2 billion in the first half of 2025 alone, according to a Climate Change Authority (CCA) report.
The Federal Government is doing its bit to help – it has set a target of achieving 82% of renewable energy electricity in the National Electricity Market by 2030 – and Australian businesses are also making the shift to green energy.
It's unsurprising, then, that Australian investors are also increasingly turning their attention to more sustainable stocks.
Here's a rundown of two ASX-listed non-oil energy investments for investors to watch in FY 2026.
Meridian Energy Ltd (ASX: MEZ)
Meridian Energy Limited is a New Zealand-based renewable energy company that generates electricity through 100% renewable sources, including hydro, wind, and solar.
The business is a significant player in the non-oil energy sector with operations across New Zealand, Australia, and the UK.
The company's shares are trading 3.01% higher at lunchtime today, at $5.48 each.
The share price has recovered some losses shed during a dip to $4.83 in March this year. Its monthly update revealed that national electricity demand in New Zealand was 5.2% lower in February. This led to a 1.9% drop in Meridian's retail sales volumes compared to the same period in 2024.
For the year, the Meridian share price is down 7.12%.
Analyst views on the stock are mixed – some are positive on long-term growth while others are wary of a short-term negative valuation.
Meridian's is forecast to have a 2% revenue deficit for 2025. However, there is forecasted earnings growth of around 8.3% by July 2026, and 15.7% growth the following year.
Overall, Meridian stock holds buy signals and positive forecasts for both long-term growth.
Meridian Energy's share price forecast suggests a potential one-year target of $6.65, with forecasts ranging from $6.19 to $7.46, according to Fintel. This represents a potential maximum 4.77% increase from today's trading price.
CommSec currently holds a 'moderate buy' consensus rating on the stock.
AGL Energy Ltd (ASX: AGL)
AGL Energy is a diversified energy company involved in both fossil fuel and renewable energy generation. But while AGL has historically relied heavily on coal-fired generation, it is actively transitioning towards cleaner energy sources and aims to achieve net-zero emissions by 2035.
AGL acquired Firm Power and Terrain Solar for $250 million in August 2024. The deal added a significant development pipeline of storage, solar and wind projects to its existing portfolio. The company is developing renewable energy hubs and also plans to develop 1.4 gigawatts of grid-scale battery storage within the next year to support renewable energy integration.
The company share price has taken a downhill tumble over the past few months, shedding 15% since mid-February this year. As of lunchtime today the shares are trading 1.43% higher at $9.96 a piece.
The decline followed the company's solid FY25 half year-result earlier in the month. The market appeared to react to the company performance, which was 8% higher than expectations, rather than the numbers themselves.
UBS is still optimistic on the stock and the company's ability to grow profit.
The broker has a neutral rating on AGL's share price but maintains an $11.50 target price. This represents a potential 15.46% increase from the current trading value.
UBS also forecasts that AGL can generate $690 million of net profit in FY25 and $971 million of net profit by FY29. This could drive AGL's share price higher in the coming years.
