The Green Gold Rush: Why Renewable Energy is a Smart Investment

There is a constant demand for energy mainly from those emerging economies and developing countries. While that sounds good, there is a major cause of concern for CO2 emissions which is believed to be caused by CO2 and many other greenhouse gases. This is why many countries are aiming to be carbon neutral by 2050 and to do this, they are replacing fossil fuels with renewable energy sources. 

With the green energy market continuing to grow, more people are now investing in companies involved with renewable energy. More investors will invest in this market as it continues to expand. That is why it is better to invest now and watch your wealth grow. 

Green Energy Investing

Green energy investing is on trend and we can only expect more investors to invest in this market. Green energy is anything where technology replaces fossil fuels with renewable sources instead. This includes wind, solar and hydroelectric power. However, it isn’t just renewable energy companies that develop these new sources of energy. It also includes those auxiliary technologies which are essential for the transition to renewable energy. For example, investing in companies that develop batteries for electric vehicles and improving the power grid. 

To achieve net zero emissions by 2050, it is believed that both solar and wind plants will require an average of $1.5 trillion per year between 2026 and 2030. New and emerging markets have also increased significantly. 

Different Green Energy Investments To Explore

Various types of green energy investments are worth investing in, especially if you want to see your money grow shortly. The demand for green energy is only going to increase so it is a market that is worth investing in. 

A simple method for investing in green energy companies is to invest in companies that are directly in the market. For example, investing in companies that manufacture solar-panels. The issue with that is not all companies are public and therefore, cannot be invested in. That is why it may be easier to invest in a mutual or index fund that has a variety of stocks that are involved in green energy, 

Clean Energy Funds

This is a very broad term that includes companies involved with renewable energy or alternative transportation technology. This may not suit all investors however it is an easy way to invest in a wide range of companies involved with renewable energy. 

There are several clean energy funds but some of the top-performing ETF funds include SPDR S&P Kensho Clean Power, Invesco Solar, First Trust NASDAQ Clean Edge Green Energy Index Fund, SPDR MSCI ACWI Climate Pris Aligned ETF, and VanEck Low Carbon Energy ETF. 

Hydroelectric Investment

One of the issues with hydro energy is that it is expensive however, it is also one of the more efficient methods of renewable energy. Plus, it accounts for 60% of renewable energy overall. Again, finding companies involved with renewable energy is a great way to get into this market as it is one of the more successful energy companies. 

There are several hydroelectric companies that you can invest in which are public and on the stock market. Some of the top-performing companies include IDACorp, Ocean Power Technologies and Brookfield Renewable Partners L.P. 

Why Should You Invest In Green Energy? 

There are many markets you can get involved in, especially for investing. Green energy is one of those that can promise long-term returns in the future. If you want a quick win then renewable energy is not worth investing in however, if you are looking to build your retirement fund then it is the best option for growing your wealth. 

Final Opinions: Investing In Renewable Energy For Your Home, Is It Worth It? 

There is a reason why you should invest in renewable energy for your home and that is to save money. However, buying solar panels for your home isn’t worth it if you are not going to be there for any longer than 10 years. That is if you use a solar battery. They will also help reduce your energy bills, so it is worth considering.

You will need to put a lot of money aside to afford solar panels as they are expensive. If you haven’t got an expensive debt to pay off such as DRO, IVA or some form of a debt management plan then you should consider renewable energy, especially if you know you will be in your current home for over 15 years. Investing in renewable energy like solar panels isn’t a must-have and should only be bought if they fit within your budget. 

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