If you are looking for renewable energy stocks to buy, this article is perfect for you! However, asking yourself why you must get involved in this space is important before delving deeper. This is likely because, in 2022, renewable energy sources surpassed coal as the primary source of electricity production in the United States for the first time in over 60 years.

Renewable energy is gaining momentum globally, not just in the U.S. The growth of clean energy is unstoppable, with little to hold it back. As per the International Energy Agency, renewable power will become the world’s primary source of electricity generation by 2025.

Wind and solar power will be huge in this transformation, contributing almost 20% of global power generation by 2027.

In addition, the European Union is pivotal in the shift towards renewable energy, as it aims to eliminate its dependency on Russian fossil fuels by 2027. It is a huge market. Consequently, the region will become a major driver toward a greener future.

Battery-powered electric vehicles are also gaining traction alongside the increasing popularity of electricity generation and storage. Moreover, there is potential for a notable market for hydrogen fuel cell electric vehicles moving forward.

Overall, renewable energy is an exciting sector for investors to explore as it expands. This article highlights three renewable energy stocks that are great plays in the clean energy space.

Renewable Energy Stocks to Buy: NextEra Energy (NEE)

NextEra Energy (NYSE:NEE) is one of the world’s largest renewable energy companies, with a regulated utility division primarily dedicated to generating, transmitting, distributing, and selling electric energy in Florida.

In addition to its regulated utility division, NextEra Energy also operates a segment that produces clean and renewable sources of electricity. The company is also involved in battery storage and green hydrogen. Given the scale of its operations, NEE is frequently included on various lists of renewable energy stocks to consider.

Hydrogen plays a vital role in the transition towards renewable energy by reducing carbon emissions in industrial areas. NextEra Energy has made substantial investments in hydrogen applications. NextEra Energy operates two distinct businesses. Its regulated electric utility operations, consisting largely of Florida Power & Light, is a large and growing utility in the United States, benefiting from population growth and providing a strong foundation for the company.

On top of this solid core is NextEra Energy Resources. It is a less descriptive but exciting name for the company’s non-utility renewable energy business. This segment produces electricity from clean and renewable sources such as wind and solar and engages in battery storage and green hydrogen. Consequently, combining these two businesses has allowed NextEra Energy to establish itself as the world’s largest renewable energy company.

NextEra Energy expects to maintain its growth trajectory, with adjusted earnings projected to grow between 6% and 8% annually through 2026. In addition, it is expecting a 10% dividend growth until at least 2024. Despite being in a traditionally slow-moving industry, the company’s promising outlook has attracted investors, resulting in a premium price for its stock.

First Solar (FSLR)

First Solar (NASDAQ:FSLR) is a solar cell manufacturer specializing in designing, producing, installing, and maintaining cadmium telluride photovoltaic modules. These modules are known for their high efficiency in converting sunlight into electricity. It is one of the top solar stocks out there.

Through its focus on efficient module design and cost-reduction strategies, First Solar is quickly becoming one of the most successful companies within the renewable energy industry.

As a sector veteran, First Solar is a strong, consistent performer. Its latest financial results, announced on Feb. 28, reaffirm why the solar company is a premier player.

First Solar reported net sales of slightly over $1 billion for the quarter, a 10% increase from the previous year. The net loss narrowed significantly to over $7.5 million, or $0.07 per share, compared to the previous year’s loss of over $49 million.

This exceeded analysts’ expectations, with the average estimate for a net loss of $0.17 per share. Revenue was in line with expectations at $1 billion.

First Solar is providing robust guidance to support its positive outlook. The company is projecting net sales of $3.4 billion to $3.6 billion for 2023, representing a growth rate of at least 30% from the previous year. Earnings per share are forecasted at $7 to $8, a significant improvement over 2022’s net loss of $0.41.

These projections exceed aggregate analyst estimates of $3.34 billion for net sales and just $4.77 per-share net income.

Due to the positive performance, First Solar stock is on cloud nine. Shares are up more than 158% over the last year, making it one of the top-performing renewable energy stocks you can buy. Load up on this name whenever there are dips.

Brookfield Renewable Corp. (BEPC)

Brookfield Renewable Corp. (NYSE:BEPC) is among the largest constituents of sustainable energy. It manages eco-friendly energy systems comprising various hydroelectric, wind, solar, and storage establishments across North America, South America, Europe, and Asia.

Furthermore, the corporation’s broad business assortment incorporates eco-friendly energy and transformation, infrastructure, private investment, property, and financial and insurance services.

Its portfolio is continuously growing, with over 120 gigawatts in the pipeline.

Brookfield Renewable and its partners have announced their intention to acquire Origin Energy, with Brookfield investing $750 million. The acquisition entails Brookfield, its institutional partners GIC and Temasek, acquiring Origin Energy’s energy markets business. In contrast, MidOcean Energy, a liquefied natural gas firm established by GIC, will acquire Origin Energy’s integrated gas business.

The acquisition provides Brookfield Renewable with an excellent opportunity to spearhead a massive decarbonization initiative in Australia. The company plans to invest billions of dollars in constructing additional renewable energy generation and storage facilities, decommission Origin’s coal-fired power plant, and reduce emissions, creating a consistent source of cash flow.

By acquiring Origin Energy, Brookfield is making a strategic investment that allows it to increase its renewable energy capacity substantially.

The investment should pay dividends for shareholders and the planet, potentially driving faster growth and producing powerful total returns. It will also allow Brookfield to become a leader in the decarbonization movement. Savvy investors know that ESG is attracting substantial investor interest. So, it is a win-win for Brookfield.

To summarize, Brookfield Renewable is a top pick for investors seeking renewable energy stocks to buy.

On the publication date, Faizan Farooque did not hold (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.