As the clean energy space continues to evolve and grow, investors have become interested in scooping up some undervalued renewable energy stocks. These stocks offer the potential for massive gains down the road. However, these renewable energy stocks also offer environmental sustainability, something everyone should be concerned about. Nevertheless, navigating the green energy sector can be difficult, given the hype surrounding these businesses and the complexity of investing in the industry.

The Inflation Reduction Act offers over $400 billion in subsidies for clean technology, marking the most significant climate and renewable energy investment in the U.S. Yet, identifying promising investment opportunities remains no easy feat.

Green energy stocks have been experiencing a downturn since early 2021, but surprisingly, the sector proved resilient last year. The iShares Global Clean Energy ETF (NASDAQ:ICLN) outperformed the S&P 500, which dropped more than 9.3% over the past year, compared to the ETF’s decline of 8%.

The investment firm Raymond James (NYSE:RJF) projects an impressive 30% to 40% growth for green energy stocks in 2023. Accordingly, with this sort of growth, these undervalued clean energy stocks are worth a look right now.

JinkoSolar (JKS)

JinkoSolar (NYSE: JKS) is a Chinese solar energy giant serving customers in over 160 countries worldwide. It is the top dog in this sphere, with a leadership position in producing solar panels.

It’s operated a hyper-growth business, generating revenue growth of more than 23% over the past five years, on average. Secular and structural tailwinds intensified last year, which saw operating results surpass historical standards.

Its business in China witnessed a three-fold increase in module shipments, while European shipments doubled from the prior-year period in 2022. These results comfortably offset lackluster growth from the U.S., which is expected to improve substantially in the upcoming quarters.

Despite the company’s solid outlook and robust performance in the past year, JKS stock is down more than 33% from its 52-week high price. This is a great time to jump in, for value investors looking at this sector.

Ormat Technologies (ORA)

Ormat Technologies (NYSE:ORA) is a geothermal energy company providing solutions for energy storage and reuse via solar panels and other hybrid devices. Its power plants are located across four continents, with more coming online each year. Ormat has 11 projects in its pipeline, many of which expect significant developments in 2023.

Indeed, 2022 was a remarkable year for its business. Ormat inked a number of product contracts valued at over $163 million. Moreover, the company reported a whopping $148.1 million backlog, representing a bump of 177%, compared to the fourth quarter of 2021. Moving forward, its management team expects the company to grow total capacity by 16% to 17% through 2025.

Furthermore, it’s scaling its business profitably, with its EBITDA and net income margins growing at an impressive 49% and 12.4%, respectively, over the past five years. Analysts at TipRanks expect a 9% upside from ORA stock’s current price, while it trades at almost 17% below its 52-week high price.

Brookfield Renewable Partners (BEP)

Brookfield Renewable Partners (NYSE:BEP) usually makes the list of the best renewable energy stocks to invest in. That’s because this company holds a sturdy and diversified portfolio of renewable energy assets providing healthy cash flows. The conglomerate has over $77 billion in assets under its management, with a capacity of 25 gigawatts. Moreover, Brookfield Renewable also has 110 GW worth of projects under development, resulting in total pipeline growth of more than 77%.

Last year, Brookfield delivered on virtually all its targets, growing its funds from operations by a healthy 8% on a year-over-year basis, to $1 billion. The hefty increase was driven by higher realized prices, as well as acquisitions of almost 3.5 GW of capacity. Moreover, its profits soared past historical averages, with its year-over-year gross profit and EBITDA margins more than 30% higher than sector averages. Consequently, this performance has led to triple-digit growth in its operating cash flows, strengthening its impressive dividend profile.

On the date of Publication, Muslim Farooque 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.