The article presents the results of diagnostics of the energy balance of Ukraine for 2015-2020, the results of the analysis of the Ukrainian experience of obtaining energy from renewable sources. It was determined that Ukraine has a powerful potential of renewable energy sources (solar, wind and bioenergy), and the introduction of both basic and improving innovative technologies in the energy industry opens up wide opportunities for the development of Ukrainian alternative energy and green business. The defining advantages of renewable energy sources in the face of depletion of fossil fuel resources and growing rates of environmental pollution are the availability of their inexhaustible resource base and environmental friendliness. However, the focus on a coal-nuclear strategy, large hydropower, a lack of understanding of the importance of introducing innovations and solving environmental problems hinders the development of the alternative energy sector. It is shown that the transition to a «green» economy is the main driving force behind sustainable economic processes. The paper emphasizes that the «green» economy is an integral part of the innovation economy, since their development requires similar coordination mechanisms and innovation infrastructure. In this regard, innovative ways of developing a «green» economy are considered on the example of the renewable energy sector. To accelerate the development of alternative energy, it is necessary to actively attract foreign and domestic investments, coordinate the interaction of local government and executive authorities, implement international standards, and involve green energy innovators, representatives of green business, science and education, etc. In addition, in the current crisis conditions, it is necessary to intensify the development of innovative and investment projects for the development of the renewable energy sector, using design and differentiated approaches, to optimize the phased implementation process, taking into account new forms of interaction between the state and developers in the energy sector.