Renewable energy investment will be the wisest move for cleaner air and low carbon emission. The government of all countries is working toward the investment so that they can conserve natural resources and work for considerable long-term savings. Most of the countries in the world are working towards renewables for clean energy by overtaking coal. Solar panels, wind power, hydropower stations, and large-scale batteries are appearing on a large scale. A lot of big companies in Europe and America are putting huge investments in renewable energy and the only aim is to save our planet. One must not forget that the world requires more green energy than fossil fuel and if there is a strong demand then the trend of investment will rise in no time.
Is it the right decision?
Now let us discuss if the renewable energy investment is the right move for the preparation of a green planet.
- The investment in renewable energy will rise once the demand for renewable energy will rise and this will lead to the improvement of the health of the global economy, local regulation, and policy.
- A strong global economy will increase the demand for power, and hence the price will rise high. This ensures the price of the companies producing power will increase in no time. Hence the investment in renewable energy like solar energy, wind power, and hydropower stations will rise in no time.
- There are countries that mandated a certain of energy to be renewable and would penalize the companies who will use fossil fuels which in turn will benefit the green business.
- It is ethical and is in line with values.
- The sector is in line with the development of technology.
- The investment has worldwide government support that includes pledges for reducing carbon footprints.
- Renewable energy investment will increase job opportunities in rural and backward areas.
Ways of investment
Renewable energy investment can happen in many ways like buying shares in companies run by individual names or investing in funds where the returns repeat the performance of stock market index.
- Taking a stake in a new wind farm or solar energy project creates a link between the money and the benefits. These are very long-term investments.
- Before investing it is important to know about the firm and whether it is regulated by Financial Conduct Authority. This guarantees some protection of the money invested.
- One may invest in the S&P Global Clean Energy Index which has a basket of clean energy stocks.
- Investing in Nasdaq Clean Energy Index is also a good option.
- Individual shares are another option for renewable energy investment.
- It is important to see them as a long-term investment and not to pull them out together from the basket because share prices are volatile.
Final take
Renewable energy is developed from the source that is available in the environment in abundance and they are sunlight, air, water, biomass, heat, and geothermal. Renewables covert natural resources directly into electricity resulting in less destruction and no carbon emission. They never run out. They are available in plenty. Renewables are helping us to provide emission-free energy, cars, heat and air travel.
