How to Invest in Solar Energy

Green and renewable energy is perhaps the most important industry of our time. We face an unprecedented challenge in the fight against climate change. However, the entire planet has now agreed to stem their emissions outputs, and make changes. That’s an enormous global shift away from fossil fuel dependence and traditional industry. The future is in renewables, and your investments should ideally shift to reflect that. In other words, now is the perfect time to think about solar and wind investments.

Yet, investors have been relatively slow to catch on. Discussions about renewable energy has grown to dominate government and business. That means the companies involved in clean energy will soon reap the rewards. It won’t be long before all companies are using solar power to provide energy for their operations. Apple, for example, now have a 100% solar powered office in Singapore. This is the future, and solar companies will come out on top. Any savvy investor can see this is a great opportunity to get on board early.

The only trouble is figuring out where to start. How exactly should we invest in this new revolution? Do we invest in the solar companies themselves? Or do we invest in solar funds provided by the government? Are there other options entirely? Today, we’ll show you how to invest in solar energy, in a variety of formats. If you’re keen to tap into this new market, keep reading.

Buy solar company stocks

One of the most obvious ways to invest in solar energy is by purchasing stocks in solar companies. It’s a simple formula. Governments and businesses are pledging to ‘go solar’ in the next ten years. Inevitably, companies that provide solar power systems should soar. Therefore, investing in them should make you a strong return. One of the biggest names in the business is Illumina. The stock price at Illumina has grown 1000% since its IPO in 2000. Currently, renewable energy stock prices have dipped down from their highs. However, high demand is likely to send them back up. These companies will ultimately replace the giant coal and oil companies, so it’s worth keeping your eye on them.

Solar income funds

Solar income funds means investing in government solar power schemes. The government has committed to produce 15% of all energy by renewable sources by 2020. And they need money to make that happen. With solar income funds, you’d invest this money to help hit this target. In return, you’ll get paid for the energy produced by the resulting solar panels. You are helping provide solar power, and reaping the reward for doing so.

Mini energy bonds

Mini energy bonds are offered by energy companies to help support their renewable division. For example, the biggest energy companies no longer just use coal power. They also produce energy with solar power and renewables. However, you might not necessarily want to invest in the entire company through general stocks. Instead, you want to simply invest in the solar power division. You can now do this with ‘mini energy bonds’. Most of the major energy companies now offer this, and you’ll get a share of profits in the solar division.

Renewable mutual funds

If you aren’t sure which is the best choice from the options above, you can hire a financial advisor. It’s their job to identify the very best opportunities, and invest for you. By using a renewable mutual fund, you’ll pool your money with lots of other investors. A financial advisor will then take that pooled money, and spread it across lots of renewable investments. They’ll find and locate the best possible returns from energy stocks, energy bonds, and government funds. They understand the market and the industry. They know how to manage the risk, and reap the rewards. They’ll spot new opportunities, and make your money grow, all while investing in solar energies.

Buying your own solar panels

Of course, if you’re looking for a more direct way to invest, you can buy solar panels for your home! That way, you are directly investing in the renewable energy companies. You’re also having a positive effect on the planet around you. Best of all, you can look at this like a money-saving investment. Although there’s an up-front cost, you’ll make the money back in utility bill savings. Once installed, you no longer have to pay an energy company. In fact, you may produce excess energy, and sell the rest back to the grid. That’s a fantastic investment.

Solar power and renewable energy is thriving. It’s time to invest in this growing industry.

SHARE
mm
Elizabeth Goldman is the editor of AlternativeInvestmentCoach.com. She has written for Investing.com, Bullbearings.com and many others.