Renewable energy is critical for achieving our climate goals, but we’re still far off in meeting the net-zero emissions target by 2050. Major step-changes will be needed to fill the gap, which will make renewable energy stocks all the more relevant.

A potential Biden win in 2024 could be a major catalyst for the renewable energy space, after a disappointing year last year. Inconsistent weather patterns, supply chain hiccups, and the energy crisis following Russia’s invasion of Ukraine weighed down the sector in 2023. Consequently, one of the leading ETFs in the sector, the iShares Global Clean Energy ETF (NASDAQ:ICLN) shed a dramatic 27% of its value last year.

Nevertheless, the sector could be in for a much-needed boost if President Biden is re-elected and pursues his clean energy policies more aggressively than before. The Biden government invested billions in combatting climate change, and one expects that to co ntinue upon re-election. With that backdrop, here are three renewable energy stocks you’d want to wager on now.

NextEra Energy (NEE)

Utility titan NextEra Energy (NYSE:NEE) offers the best of both worlds for investors in green energy, with a growing dividend to top it off. Its potent power utility business, known as Florida Power and Light, is the largest in the state, catering to more than 11 million people. The segment offers steadily rising revenues, enabling NextEra to invest in clean energy initiatives. The company has plans to invest a whopping $85 billion to $95 billion in green infrastructure projects in the U.S. by 2025. 

Furthermore, the company’s financials are a visual feast, with top- and bottom-line metrics firmly in the green over the past several years. With double-digit expansion in its profitability margins, the firm has built a fortress-like balance sheet with $2.69 billion in cash and equivalents.  As we advance, it expects to post a 6% to 8% increase in annualized earnings through 2026. Not to forget, it yields an excellent 3.42% with 28 years of consistent growth in payouts.

Enphase Energy (ENPH)

Enphase Energy (NASDAQ:ENPH) is a California-based solar energy systems provider catering to its vast residential and commercial clientele. It has operated a remarkably efficient business backed by double-digit historical sales growth. However, it had a forgettable 2023 due to heightened interest rates, with its stock shedding 41% of its value last year. Nevertheless, with interest rates expected to cool off in the upcoming months, ENPH stock could be in for a rebound.

ENPH stock surged over 10% on optimistic demand expectations for the second quarter. Its management expects a healthy demand recovery in Europe, while introducing several new products across key markets. Moreover, the first quarter is deemed as the company’s lowest point. It has the goal of correcting the supply/demand imbalance in the upcoming quarter. As we advance, Tiprank expects ENPH stock to offer a 20% upside from current price levels, attracting a ‘moderate buy’ rating.

First Solar (FSLR)

First Solar (NASDAQ:FSLR) is a leading solar panel manufacturer based in Tempe, Ariz. It specializes in the production of thin-film solar PV technology, which is more cost-effective, durable and sustainable than silicon-based panels. Moreover, thin-film solar panels tend to use significantly fewer materials and are more versatile than silicon-based panels. Consequently, FLSR’s innovative edge in thin-film technology has helped it navigate a rather tricky solar energy market with aplomb, despite broader industry challenges.

It wrapped up a robust Q4, with revenues rising 16% year-over-year to $1.16 billion with an earnings of $3.25 per share beating estimates by 12 cents. On the back of higher module sales, Q4 earnings swung to a profit from a loss of 7 cents per share from the prior year period. Additionally, it has continued to scale manufacturing capacity while investing in research and development to take its product roadmap to the next level. This includes the commitment of $1.1 billion for a new manufacturing facility in the U.S.

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