Renewable energy, commonly referred to as green energy, is big business. The global renewable energy market was worth an estimated $1.21 trillion in 2023, and the sector is projected to grow by 17.2% annually through 2030. This growth is being powered by an increasing number of solar, wind and bio-energy companies.

Developing and expanding green energy sources is important as society tries to wean itself off fossil fuels believed to cause climate change. As the earth warms and we contend more with severe storms, forest fires and flooding, the drive to create and adopt green energy sources has taken on added importance.

Here are three green energy stocks that could grow your wealth.

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NextEra Energy (NEE) Person holding mobile phone with logo of American energy company NextEra Energy Inc. on screen in front of web page. NEE stock

Source: T. Schneider / Shutterstock.com

NextEra Energy (NYSE:NEE) is the world’s largest electric utility and the biggest generator of renewable energy from wind and solar on the planet. That makes the stock a natural pick for investors concerned about the environment and who want to gain exposure to green energy companies. And now is a great time to buy NEE stock, with its share price up 17% on the year.

NEE stock is also currently trading at a reasonable 20 times forward earnings estimates and it pays a quarterly dividend of 52 cents, giving it a yield of 2.91%. Analysts at BMO Capital Markets (NYSE:BMO) recently raised their outlook on NextEra Energy stock, lifting their price target on the shares to $83 from $79 and maintaining an Outperform buy-equivalent rating.

First Solar (FLSR) Person holding smartphone with logo of US renewable energy company First Solar Inc. (FSLR) on screen in front of website. Focus on phone display. Unmodified photo.

Source: T. Schneider / Shutterstock.com

First Solar (NASDAQ:FSLR) is a solar power company based in Tempe, Arizona. It manufactures solar panels and provides full lifecycle services to its customers, from initial installation to end-of-life panel recycling. The company also helps its customers to finance the cost of its solar panels. Among solar stocks, FSLR is a standout. The company’s share price has risen 211% over the last five years, including a 22% gain so far in 2024.

First Solar also trades at a decent price-earnings ratio of 22, though it does not pay a dividend. FSLR stock got a boost in late May of this year after analysts at UBS (NYSE:UBS) said the company stands to benefit from the proliferation of energy-hungry data centers that are used to support artificial intelligence (AI) applications and models. UBS maintained a Buy rating on the stock and raised its price target to $270 from $252.

Enphase Energy (ENPH) Smartphone with logo of American company company Enphase Energy Inc. (ENPH) on screen in front of business website. Focus on left of phone display. Unmodified photo.

Source: T. Schneider / Shutterstock.com

Based in Freemont, California, Enphase Energy (NASDAQ:ENPH) manufactures solar micro-inverters, battery energy storage systems and electric vehicle charging stations primarily for residential customers. The company is all-in on renewable power and environmentally friendly energy sources. While ENPH stock is down 15% this year, it has gained 429% over the past five years, making it a long-term winner for investors.



The company’s valuation is richer, trading at 41 times future earnings estimates. But its long-term market outperformance justifies a premium price. Analysts at B. Riley Securities (NASDAQ:RILY) recently placed a Buy rating on ENPH stock and raised their price target on the shares to $149 from $121. JPMorgan Chase (NYSE:JPM) also maintains a Buy equivalent rating on Enphase Energy stock with a price target of $124.

On the date of publication, Joel Baglole 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.

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

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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