Investing in clean energy stocks is a good strategy to gain exposure to expanding addressable markets, which should allow companies to grow revenue and earnings over time. In this article, I have identified two green energy stocks Canadian investors should consider buying with $1,000 right now.
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Is Brookfield Renewable Energy stock a good buy?
Valued at a market cap of $22.5 billion, Brookfield Renewable (TSX:BEP.UN) owns a portfolio of power-generating facilities in the Americas. It generates electricity through hydroelectric, wind, solar, distributed generation, and pumped storage. Brookfield also offers sustainable solutions, such as renewable natural gas, carbon capture and storage, recycling, cogeneration, biomass, nuclear services, eFuels, and power transformation.
In the second quarter (Q2) of 2024, Brookfield grew its funds from operations (FFO) by 10% year over year, driven by solid performance from its hydro fleet. The clean energy giant Brookfield commissioned 2.1 gigawatts of new renewable capacity in Q2 and expects to bring online a record eight gigawatts in 2025, showcasing an ability to rapidly scale operations.
The standout achievement was securing a framework agreement with Google to deliver up to three gigawatts of hydroelectric capacity across the United States. This follows a similar 10.5-gigawatt framework with Microsoft, which positions Brookfield as the preferred partner for hyperscalers facing rising power demands from artificial intelligence and data centre expansion.
Brookfield’s diversified technology portfolio across hydro, wind, solar, nuclear, and battery storage provides a unique competitive advantage. Its Westinghouse nuclear services business performed exceptionally well, benefiting from growing global nuclear demand, while its recent Neoen acquisition made it one of the world’s largest battery storage operators.
Brookfield’s cash position remains robust, with US$4.7 billion in available liquidity and the successful completion of US$19 billion in financings year-to-date. Management’s strategy of securing long-term contracts while maintaining development margins positions the company to capitalize on what executives called “the most robust energy demand growth in decades.”
With a massive 230-gigawatt development pipeline and exclusive relationships with the world’s largest power buyers, Brookfield is exceptionally well-positioned for sustained growth.
Is this green energy stock undervalued?
First Solar (NASDAQ:FSLR) is another large-cap stock that should be on your watchlist right now. In Q2 of 2025, First Solar reported earnings per share of US$3.18, exceeding the high end of guidance, driven by strong demand for domestically manufactured modules and contract termination payments.
First Solar’s strategic positioning has been enhanced by recent policy developments, particularly the One Big Beautiful Bill, which restricts tax credits for products manufactured by Foreign Entities of Concern, like Chinese competitors.
These new restrictions address major loopholes in the Inflation Reduction Act. They are expected to limit Chinese solar manufacturing in the U.S., reducing domestic content supply and strengthening First Solar’s competitive moat.
First Solar saw a positive market response with 2.1 gigawatts of new bookings in July alone, including re-contracted volume at approximately US$0.33 per watt, demonstrating pricing power improvement.
The company maintains a strong contracted backlog of 64 gigawatts valued at US$18.5 billion, with robust demand for U.S.-manufactured products through 2028.
FSLR’s diversified approach includes potential U.S. finishing lines that could leverage international capacity while qualifying for manufacturing tax credits and reducing tariff exposure.
First Solar stock is exceptionally well-positioned to capitalize on growing utility-scale solar demand while benefiting from an increasingly favourable regulatory environment that favours domestic manufacturers.
Analysts tracking FSLR stock forecast adjusted earnings to grow from US$12 per share in 2024 to US$35.5 per share in 2028, indicating an annual growth rate of 31%. Suppose FSLR stock is priced at 10,5 times forward earnings, which is similar to the current multiple, it could almost double over the next three years.
