The energy storage industry is well-positioned for success in 2023, as a wave of positive changes in the energy landscape means more investment, innovation, and growth. Clean energy transition and decarbonization initiatives are driving increases in renewable energy investments, leading to groundbreaking research and development into new efficient storage capabilities. Meanwhile, demand is steadily increasing as industry stakeholders recognize the value of having access to reliable and sustainable sources of electricity. Therefore, clean energy storage stocks are poised to break out over the next few years.

The energy storage market will continue to grow due to the growing demand for peak load management and balancing grid operations. Moreover, digital transformation has been a major catalyst for the market, facilitating new and innovative solutions. Acumen Research and Consulting predicts that the Energy Storage as a Service Market is expected to surpass $2.62 billion in total value by 2028, a 9.8% bump in compound annual growth.

Eos Energy Enterprises (EOSE)

Eos Energy Enterprises (NASDAQ:EOSE) is providing an affordable and safe alternative to lithium-ion batteries. Its zinc-based batteries result from committed research and development, as zinc provides superior power discharge properties at a more cost-efficient price tag than lithium. The attractive thermal properties make these batteries attractive to automakers and other industries. As a result, EOS Enterprises’ innovative technology opens doors for consumers, businesses, and governments alike when seeking sustainable battery storage solutions for their needs.

The firm has done remarkably well in growing its top line, generating over 900% growth over the past year. Also, as per its latest quarterly results, it boasts an order pipeline of $7 billion, with an order backlog of a whopping $450 million. However, its sizeable debt load has investors worried about the future, which is why it remains a speculative play at current prices.

Fluence (FLNC)

Fluence (NASDAQ:FLNC) is revolutionizing energy storage, access, and availability for customers in the U.S. and worldwide with its cutting-edge application of artificial intelligence and digital solutions. From providing energy storage products and services to developing operational services, Fluence aims to reduce costs and increase effectiveness for utilities, developers, commercial entities, and industrial customers.

The company has significantly increased its energy storage deployments in the past year, despite the pandemic-induced market headwinds. The firm had 3.6 GW of energy storage deployed in October 2021, which grew by an incredible 42% through June last year. Moreover, its top line has grown substantially over the years, posting record sales in its most recent quarter. Revenues more than doubled to $442 million in its fourth quarter from the same period last year. Additionally, its loss per share narrowed from 74 cents to 32 cents in its fourth quarter, suggesting that it could break even within a couple of years.

NextEra Energy (NEE)

NextEra Energy (NYSE:NEE) is constantly redefining itself as a leader in the energy industry, doing so with a current business model and long-term strategy that allows it to capture opportunities created by the renewable energy transition. This forward-thinking approach can be seen in its diversified portfolio of electric generation assets, designed to provide stable and predictable cash flows over the long run despite ever-changing regulations.

The firm has more energy storage capacity than any other enterprise operating in the U.S., with over 180 MW of energy storage systems. From 2023 to 2024, the firm had 1,363 MW of planned large-scale projects. Moreover, it has 5MW to 400MW under development across various states in the U.S. Additionally, with a massive cash flow base; the company has enough wiggle room to continue investing in its energy storage business.

Stem (STEM)

San Francisco-based Stem (NYSE:STEM) is revolutionizing energy storage with its innovative solutions. Its advanced, AI-powered software, Athena, uses artificial intelligence and machine learning to optimize energy usage. The technology can reduce a user’s energy usage by intelligently switching between battery power, onsite generation, and grid power without sacrificing performance. Beyond that, STEM offers additional solutions such as energy storage, microgrids, and commercial electric vehicle charging.

STEM has made impressive strides over the last year, and its future looks even brighter. For starters, it nearly tripled its revenues from $40 million in the third quarter of 2021 to almost $100 million in its third quarter last year . Its contracted backlog has grown even faster, rising from $312 million to an astounding $817 million. Its success is largely due to its smart product mix. Additionally, its stock trades at just 2.4 times its book value which is a highly attractive valuation given its robust long-term outlook.

Enphase Energy (ENPH)

Enphase Energy (NASDAQ:ENPH) remains a top pick in the burgeoning solar industry. Its eye-catching fundamentals have grown remarkably over the years, with its top line expanding at over 46% over a five-year period. Enphase Energy’s operations are growing at an astonishing rate. The company recently announced an expansion of its IQ8 microinverter deployments in New Hampshire and Puerto Rico. Likewise, international customers in the Netherlands are making use of the company’s solar energy systems. Enphase further entered into a strategic alliance with Enerix, a German inventor of decentralized energy solutions.

The company has been significantly expanding its home solar and battery storage deployments across various parts of the globe, including Germany, the U.S., and other areas, potentially adding millions in new revenues for the firm.

AES Corp. (AES)

AES Corp. (NYSE:AES) has emerged as a prominent global leader in sustainable energy. Based in Virginia, the company generates and distributes power in 15 countries, with major subsidiaries in Ohio and Indiana. Other locations include Argentina, Brazil, Chile, the U.K., and others. The firm recently entered into a joint venture with Air Products. This $4 billion project entails building a hydrogen plant using solar and wind power sources in Texas – making it the largest facility of its kind in the U.S.

AES remains a leader in lithium-ion-based energy storage. It revolutionized this technology over a decade ago and is now included in almost half of its new projects. Investing in energy storage can have a meaningful impact on combating climate change. This technology’s “force multiplier” is key for carbon-free energy sources such as solar and wind power.

QuantumScape (QS)

QuantumScape (NYSE:QS) wants to commercialize solid-state batteries, which boast an energy density 10 times greater than a traditional lithium-ion batteries. QS stock has been making the rounds of late following an announcement that its 24-layer prototype lithium-metal battery cells are being shipped to automotive OEMs for validation testing. Its nailed all its operational benchmarks so far and is set to revolutionize not just the automotive sector but other industries such as energy storage and commercial electronics. From a financial perspective, QuantumScape is well equipped to invest in further researching and developing its technology with an impressive $1 billion in liquidity entering 2023 and holds over 300 patents and patent applications.

On the date of publication, Muslim Farooque 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.