3 Renewable Energy Stocks That Could Gush as Oil Stays Volatile

It’s a tough time to invest in energy stocks. Despite being in peak hurricane season, when supply disruptions usually push crude higher, oil is stuck around $60 a barrel, leaving energy stocks under pressure.

Oil giants like Exxon Mobil and Chevron resist the Trump administration’s calls to pump more. Their message is simple: they’re already near record output in the Permian, and new barrels come at a higher cost and lower efficiency.

At the same time, the long-term demand for electricity makes energy stocks a clear long-term investment idea.

While oil is trapped in a low-price cycle, the bigger energy story is demand. America’s push for AI supremacy won’t succeed without abundant, reliable electricity. This creates a secular growth driver that transcends today’s oil market and updates the country’s aging electrical grid.

It’s also where the story gets complicated. The Trump administration’s “war” on wind and solar is about more than politics. In January 2025, the U.S. Treasury Department estimated that subsidies for wind and solar totaled $31.4 billion in 2024 and would cost an additional $421 billion between 2025 and 2034.

That was based on provisions in the Inflation Reduction Act.

Complicating the issue further is that without these subsidies, many wind and solar projects and the companies behind them would not be viable. However, there are still opportunities in this sector. Here are three renewable energy stocks that may be worth a look as the United States looks to up its power game.

The Diversified Clean Energy Utility Giant

At first glance, NextEra Energy Inc. (NYSE: NEE) would seem to play against a renewable energy growth story. The company is one of the world’s largest generators of wind and solar power, which adds political risk from the Trump administration’s plans to scale back wind and solar subsidies.

So why has NEE stock increased nearly 10% in the last three months? NextEra Energy is not a one-dimensional renewable play. The company also owns and operates nuclear power plants in Florida, which provide reliable, carbon-free baseload electricity.

Unlike solar and wind, nuclear does not depend on subsidies and is increasingly recognized as essential to meeting long-term U.S. power demand, particularly with AI and data center growth. Coupled with its regulated utility arm, Florida Power & Light, these assets give NextEra a balanced mix of stability and growth.

For investors, NEE has pulled back from its 2023 highs and trades at a reasonable forward P/E of around 20x compared to the sector average of around 18x. The company offers a 3%-plus dividend yield, making it a solid choice for growth and income investors.

An Asymmetric Company for Speculative Investors

It’s hard to talk about clean energy without including hydrogen. That brings Plug Power Inc. (NASDAQ: PLUG) into the conversation. The company is a leader in hydrogen fuel cell systems, which could be critical for decarbonizing heavy transportation, industrial processes, and backup power applications.

Strategically, hydrogen offers a pathway where batteries struggle. If the U.S. pursues energy independence while ramping up electricity for AI and data centers, hydrogen could earn bipartisan support as a strategic technology.

That hasn’t been the case to date. That’s the risk with investing in Plug Power. The company continues to wrestle with execution issues, persistent cash burn, and dependence on subsidies. These issues raise questions about its financial durability under a less supportive policy backdrop.

PLUG stock is down sharply from the meme stock-fueled rally in 2021 and now trades in penny stock territory. The company is unprofitable, which adds to its volatility.

However, for risk-tolerant investors who believe in hydrogen’s long-term role, Plug Power offers asymmetric upside if adoption accelerates.

A Company That Behaves Like an ETF

Brookfield Renewable Partners L.P. (NYSE: BEP) offers investors a more stable entry into the renewable energy sector. The company operates a diversified global hydroelectric, wind, solar, and storage portfolio.

That said, nearly half of the company’s portfolio is hydroelectric, giving it a baseload generation advantage that complements intermittent renewables. Unlike equipment makers or project developers, Brookfield’s model relies on long-term power purchase agreements, producing predictable cash flows and insulating it from short-term political swings.

Strategically, BEP is well-positioned for the AI-driven surge in electricity demand, with Brookfield Asset Management’s scale and capital access behind it.

BEP behaves like a renewable-focused utility ETF in many ways, giving investors diversification across technologies and geographies in a single stock. For example, the Energy Select SPDR Fund (NYSEARCA: XLE) is up 2.5% in 2025.

However, BEP stock is up 10.62%. That means investors are getting 400% higher stock price growth in addition to a dividend that has a 5.9% yield. This makes the stock a solid choice for investors seeking renewable exposure without the extreme volatility of smaller pure plays.

Written by Chris Markoch

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