Is NextEra Energy (NEE) the Most Profitable Renewable Energy Stock Now?

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We recently published a list of 10 Most Profitable Renewable Energy Stocks Now. In this article, we are going to take a look at where NextEra Energy, Inc. (NYSE:NEE) stands against other most profitable renewable energy stocks.

In an interview with CNBC on November 9, John Berger, CEO of Sunnova stated that the market is misunderstanding the effects of a Trump administration on solar. Berger addressed speculation about the potential scaling back of the IRA policies under the Trump administration noting that the IRA will not change much, as it has been successful in promoting domestic manufacturing of solar panels, batteries, and electric vehicles. In fact, 85% of the capital investments in these areas are in Republican districts.

Berger also highlighted the success of the IRA in incentivizing domestic manufacturing, citing the tax credit for manufacturing and the domestic content requirement in the investment tax credit. He emphasized that both parties agree on the importance of domestic manufacturing.

Renewable Energy Under Trump's Agenda

In another interview with CNBC on November 14, Bill Perkins, President and CEO at Skylar Capital Management, shared his insights on the energy agenda under President Trump's new administration. Perkins emphasized that the incoming administration is "pro-energy of all kinds," whether it's nuclear, renewable, natural gas, or any other type of energy. He believes that the administration will aim to remove delays, bottlenecks, and frustration points that hinder energy production in the United States.

Perkins noted that the markets have already reacted to the change in administration, with renewable energy companies seeing their stocks relatively lower compared to oil and gas stocks. Perkins suggested that people are worried about the incentives, such as the Inflation Reduction Act, going away. However, he believes that the first thing the administration will focus on is addressing the permitting times, which are currently too long. He pointed out that there is a wing within the United States Environmental Protection Agency (EPA) and the government that is anti-development and is hurting renewable energy production.

We also discussed the US government's incentives for the nuclear energy sector in our article about the 10 Best Nuclear Energy Stocks To Invest In Now, here's an excerpt from it:

"To support nuclear expansion, the U.S. government has bolstered the sector with tax credits, loans, and research funding. The Inflation Reduction Act’s (IRA) production and investment tax credits for new reactors and existing plants are expected to play a pivotal role.

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