With the adoption of utility-scale solar energy and wind energy poised to continue growing quickly over the longer term, the outlook of renewable energy stocks remains quite strong, Brandon Moss, the CEO of Shoals (NASDAQ:SHLS), which provides components for utility-scale solar projects, recently stated, “Utility-scale solar remains quicker and more economical to deploy than conventional energy sources.” According to Moss, another factor promoting continued growth of the energy source is the fact that “the major tech companies driving AI and data center growth have committed to powering these facilities with sustainable energy. ” Conversely, Moss noted that delayed permitting and interconnection of large solar projects is greatly slowing the sector’s growth.

However, both Congress and the Department of Energy appear to be moving relatively quickly to address this issue which has negatively impacted many firms in the sector. Consequently, I believe that these problems will be solved over the long term. As far as wind energy is concerned, the installed capacity of the energy source will reach tw0 terawatts before 2030, up from one terawatt in 2023. Amid these powerful, positive catalysts, investors should look for a renewable energy stock or renewable energy stocks to buy. Here are three of my top picks.

First Solar (FSLR)

Continuing to benefit a great deal from strong U.S. tax breaks for domestic manufacturers of solar panels, First Solar (NASDAQ:FSLR) keeps posting stellar quarterly results. Last quarter, the firm’s revenue jumped 23% versus the same period a year earlier, while its earnings per share climbed to $3.25 from $2.20 in Q1 of 2023.

First Solar may also be benefiting from a vote by the  US International Trade Commission in June to impose tariffs on solar panel imports from Cambodia, Malaysia, Thailand, and Vietnam. Many Chinese solar panel makers have built factories in Vietnam. Although three more major steps must be taken before tariffs can be imposed on the imports, the move is likely pushing many American utilities to buy panels from First Solar rather than the factories of Chinese companies in Southeast Asia.

Meanwhile, the company is building three new factories. Over the longer term, this should enable it to benefit from the continued, rapidly growing demand for solar energy. All of these factors make First Solar a top renewable energy stock to buy.

Brookfield Renewable Partners (BEP)

Brookfield Renewable Partners (NYSE:BEP) owns renewable power projects, “primarily in North America, Colombia, and Brazil.” As a result, the company, which controls both wind and solar projects, is well-positioned to benefit directly from the rapidly increasing demand for clean power from data centers in North America. Moreover, the rising demand for electricity from electric vehicles should also greatly boost Brookfield Renewable’s financial results over the longer term.

The company may already be benefiting from these trends as its funds from operations climbed 9% last quarter versus the same period a year earlier to $339 million, while its top line soared 22% year-over-year to $1.48 billion.

According to Seeking Alpha columnist Trapping Value, Neoen, a major French renewable energy producer, which Brookfield recently agreed to acquire, owns 5 gigawatts of renewable energy and is building another 20 gigawatts of such projects. Moreover, these undertakings will enable Brookfield to benefit significantly from higher power prices over the longer term, Trapping Value reported. Given high European electricity prices, that sounds like a valid thesis.

Additionally, Brookfield Renewable carries a very high dividend yield of 5.8%.

All of these points make Brookfield Renewable a great renewable energy stock to buy.

NextEra Energy (NEE)

NextEra (NYSE:NEE) is the world’s largest producer of solar and wind energy. It also owns America’s largest electric utility, Florida Power & Light.

Likely largely due to the latter point, NEE stock has performed very well in recent months, as U.S. investors have been much more bullish about utilities’ ability to benefit from the proliferation of data centers than renewable energy companies’ ability to do so. Indeed, NextEra’s shares had rallied 27.5% in 2024 as of Aug. 9, and they were up 9% in the month that ended on Aug. 9. Given the continued, rapid buildout of data centers in the U.S., electric utility stocks, including NextEra, will probably continue to perform well for the foreseeable future.

Last quarter, NextEra’s earnings per share, excluding certain items, climbed to $1.38, compared to 96 cents in Q2 of 2023.

Meanwhile, the shares have a low Enterprise value/EBITDA ratio of 16.3 times.

All of these points make NextEra one of the top renewable energy stocks to buy.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

On the date of publication, Larry Ramer owned long positions in FSLR and SHLS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.