3 Renewable Energy Stocks to Buy Now: June 2024

Despite the current economic difficulties, it would be a mistake to ignore the best renewable energy stocks to buy right now.

Over the years, the renewable energy space has shown enormous promise, offering a very compelling long-term runway. While we’ve seen demand decline over the past year, it’s hard to ignore the long-term financial incentives associated with investing in the renewable energy space.

Take this from the U.S. Energy Information Administration, which states that renewable energy capacity is expected to grow 17% this year, passing a milestone of 42 gigawatts. This would represent approximately 25% of national electricity production.

Moreover, despite the current lull in renewable energy investment, the United States continues to break records in renewable energy deployment. Analysts expect a significant acceleration over the next six months, when many companies will face multi-pack investments. Nevertheless, these three companies are deeply committed to the sector and have successfully addressed recent shortcomings in the industry. Moreover, thanks to a wide range of projects, they remain well prepared for future expansion.

Next Era (NEE)

NextEra (NYSE:FROM HOME) is the world’s largest energy company and has made great progress in the field of renewable energy in recent years. The utility business provides a strong buffer for the growing renewable energy segment, which continues to evolve every year.

Despite the current headwinds, NEE stock is performing exceptionally well and its underlying business continues to deliver outstanding earnings growth. In the first quarter (Q1) alone, NextEra’s clean energy business added 2,765 MW of new renewable energy and storage projects, making it one of its most successful quarters of growth. Moreover, it added approximately 1,640 megawatts in new solar projects, strengthening its position as an industry powerhouse. Notably, it reported strong net profit growth to $2.27 billion in the first quarter, up from $2.09 billion in the year-ago quarter.

Let’s not forget about the attractive dividend profile. At a yield of over 2.9%, the dividend has been growing for 28 years in a row. Looking ahead, Next Era management has set an ambitious dividend growth target of 6-8% by 2027.

Sun Run (RUN)

Sunny run (NASDAQ:START) is a leading supplier of photovoltaic systems and battery energy storage systems. With winds weighing down on the solar space, RUN stock has seen a sharp decline, and even more 36% YTD (YTD). The company faces challenges on multiple fronts, including a tight consumer economy and tight monetary policy, which continue to negatively impact its financial performance. These restrictions have significantly impacted Sunrun’s finances, reflecting difficult operating conditions.

However, there is a silver lining to Sunrun’s storage segment, which has proven lucrative despite the solar industry’s woes. The move to energy storage aims to improve profit margins and support value creation. What’s more, the company has already started to reap the rewards, reporting a massive 50% increase in new storage installations in its latest quarterly report. Additionally, it announced the launch of new network services programs, including “PowerOn Puerto Rico” and “CallReady.”

Therefore, with many catalysts in motion, it is an excellent time to benefit from high-quality renewable energy.

Brookfield Renewable Partners (BEP)

Brookfield Renewable Partners (NYSE:BEP) is part of the extensive Brookfield Asset Management ecosystem and effectively benefits from the deep pockets of its parent company. Therefore, thanks to the powerful financial support of its parent company, BEP boasts a diversified and comprehensive portfolio of renewable energy assets.

Its portfolio resembles a buffet table for renewable energy stock investors and includes 10,700 megawatts of hydro, 37,200 MW of wind, 75,300 MW of solar and 26,400 MW of storage options. Moreover, its operations cover over 20 countries and 30 different energy markets, illustrating its broad operational scope.

The strength of the company’s business are long-term property contracts, which provide constant sources of income. This stability is evident in its impressive profit and loss profile and consistent shareholder compensation program. Moreover, with its strategic expansion in key renewable energy sectors such as wind, solar and hydropower, BEP is positioning itself as a true powerhouse. As a result, it’s one of the best renewable energy stocks to buy right now.

As of the date of publication, Muslim 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 author and are subject to InvestorPlace.com’s Editorial Guidelines