President Biden has taken a very strong approach towards the renewable energy goals. He has announced several tax credits for renewable energy companies. The president has committed to increasing renewable energy production on land and water, which has given a boost to renewable energy stocks across the country. While 2023 saw a slowdown in the industry, the upcoming election could give a push to the sector, and we could see more grants and subsidies from the government.

These grants will ultimately benefit several renewable energy companies, which will see higher revenue and growth. It is expected that renewables will take over coal by 2025 as the world’s biggest source of electricity, and we could see a massive expansion of the solar energy sector. A big shift is underway, and if you are ready to ride the green energy wave, here are the three renewable energy stocks to buy before the end of this month.

Renewable Energy Stocks to Buy: NextEra Energy (NEE)

One major reason I love NextEra Energy (NYSE:NEE) is its blend of two highly successful businesses into one. It is a utility company that steadily generates revenue and is also the country’s largest capital investor in the renewable segment. The company plans to invest $85 billion to $95 billion in infrastructure projects in the U.S. by 2025. While the company is mature, it still has a lot of space to grow. It reported a net income of $0.59 per share for the quarter and $3.60 per share for the year.

About 70% of the company’s business is the utility assets which is known as the Florida Power and Light, and the remaining 30% is the renewable segment. That means the company already has a monopoly in certain regions where it serves and it has the liquidity to invest in the renewables segment.

It aims to see a 6% to 8% increase in earnings annually through 2026. The company has a solid balance sheet, allowing it to reward investors through dividends. It enjoys a dividend yield of 3.56% and aims to increase the dividends by 10% through 2026.

Exchanging hands for $57 today, the stock looks highly undervalued to me and is worth an addition to your portfolio. It might seem like a boring stock to buy, but it will generate passive income for you. As the economy improves, there will be higher investments in the renewable energy sector and that is when NextEra Energy will pick up the pace.

The company has had the best year of new renewables and added 9,000 MW to the backlog. This is one stock to buy while it is trading at a discount. It could soar to new highs later this year.

First Solar (FSLR)

Solar energy is gaining traction. If you are looking for just one solar energy stock to own, it has to be First Solar (NASDAQ:FSLR). The company enjoys a dominant position in the industry and is in an excellent place today. While it has struggled due to high-interest rates and soaring inflation, it is ready for a great year. It is aiming to make the most of the tax credits and expects to receive about $1 billion to $1.05 billion in credits this year.

Trading at $162 today, the stock has dropped 20% in the past year and is down 5% year to date. It is much lower than its 52-week high of $232, which means there is a lot of upside potential. With the upcoming elections, renewable energy stocks are set to benefit.

The company provides PV solar energy solutions while also building solar modules that use a very thin cadmium telluride material layer to convert sunlight into electricity. Besides producing modules, it also offers maintenance services to the owners.

First Solar reported impressive fundamentals and beat analyst expectations in the fourth quarter. Its net income reached $349 million, and the revenue hit $1.16 billion, driven by higher module sales.

It now expects annual net sales between $4.4 billion to $4.6 billion. When it comes to renewable energy, the solar energy segment is expected to grow at the fastest pace, since it will have the ability to produce maximum energy.

FSLR already has a backlog that will last until 2026, and the tax credits have placed it in a very attractive place. As the largest solar firm, First Solar has already set the momentum for 2024. It could be one of the best stocks to add to your portfolio before it soars.

Brookfield Renewable (BEPC)

Brookfield Renewable (NYSE:BEPC) owns several renewable power assets, which makes it a diversified business. The company owns over 100 wind farms and 200 hydroelectric plants. It had a rough 2023 but ended the year with strong financials. Its funds from operations was a record $1.1 billion, and it added about 5,000 MW capacity.

The company committed $9 billion to growth and this investment will pay off by 2025. While its results were below the annual target, that was due to the delay in acquisitions. However, I believe it will gain momentum this year and achieve growth over the next two years.

Brookfield Renewable is driven by acquisitions and while they do not show immediate results, the investments do pay off in the long term. One big reason to own the stock is its strong dividends. The company enjoys a dividend yield of 5.63% which is better than several other companies today.

With an anticipated rate cut, renewable energy projects, acquisitions and rising demand for renewable energy, its solar segment is the most successful and it could help win new commercial and corporate clients this year.

Exchanging hands for $25, the stock has dropped 12% year to date and is down 14% in the year. It was once trading as high as $62 but has lost most of its value. Buy the stock while it is trading at a discount.

On the date of publication, Vandita Jadeja did not hold (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.