A green economy is fast approaching, and renewable energy companies are reaping the benefits. Indeed, a recent article from ClimateWire cites that renewables will take over coal as the global source of electricity by 2025.

Moreover, government grants and subsidies, as well as increasing liquidity and cash reserves, help renewable energy companies to expand. And with elections in November, the sector may be looking at promises of additional support, so many investors are looking for renewable energy stocks to buy. 

If any of the above comes to fruition, these catalysts could propel these three undervalued stocks into the stratosphere.

Array Technologies (ARRY)

With the sun’s potential as an almost infinite energy source, solar is one of the most prominent champions of renewable energy. Array Technologies (NASDAQ:ARRY) offers utility-scale solar tracker technology.

Specifically, the company enables renewable energy companies to harness the sun’s power, with patented trackers that drive multiple rows of solar panels and track the sun’s rays for efficient energy generation throughout the day. 

The growing green economy has positively impacted Array Technologies. Partnerships with companies like Aluminum Products Company support the increasing market for the renewable energy sector in the Middle East, and the company is well positioned for growth.

Array Technologies’ latest financials reported a record adjusted EBITDA of $288 million and net income of $85.55 million for FY’23. Gross profits also nearly doubled to $415.5 million for the same period.

ARRY stock has also been trading at very low prices compared with last year’s high. And with the previously mentioned catalysts, I see it as undervalued based on its current financial standing and potential growth.

Atlantica Sustainable Infrastructure (AY)

Infrastructure plays a big role in the move to a green economy. Atlantica Sustainable Infrastructure (NASDAQ:AY) focuses on sustainable infrastructures and specializes in renewable energy assets.

The company owns various projects and facilities in North and South America as well as the EMEA. Atlanticas’ portfolio includes 343 MW of natural gas generation capacity, electric transmission lines spanning 1,229 miles and 2,161 megawatts (MW) of total renewable energy generation capacity.

The company’s FY’23 year-end financials showed significant improvement. Net profit ended at $43.4 million compared to last year’s net loss of $5.4 million. Adjusted EBITDA also increased by 1.7% to $794.9 million, meeting company guidance guidance despite a slight dip in revenue.

With continued growth and a positive outlook, Atlantica becomes even more attractive to green investors looking for undervalued yet quality renewable energy stocks to buy.

Brookfield Renewable Partners (BEP)

Last, but not least, we have Brookfield Renewable Partners (NYSE:BEP), one of the largest renewable energy businesses in the U.S.

The company owns and operates various sustainable solutions and renewable power assets, including wind, hydroelectric, and solar power assets. Brookfield has an installed capacity of roughly 31,800 megawatts to support North America, South America, Asia and Europe. In addition, the company has a 143,400 MW development pipeline that will help boost its capacity.

The company reported a strong FY’23, with a record 7% growth in funds from operations (FFO) to $1.1 billion, driven by its high-quality cash flows, organic growth, and strategic acquisitions. In addition, Brookfield deployed $9 billion to invest in itself and close two notable transactions. The result? Brookfield Renewable ended the year with a stronger balance sheet and over $4 billion in available liquidity.

Dividend growth investors will be happy to know the company has been fully committed to providing shareholder value through its dividends, recently enhanced with a 5% increase in quarterly distributions.

While BEP’s stock price has been dismal for the past year, investors may use this opportunity to get a quality company at a discount.

 On the date of publication, Rick Orford 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.