The world is going through a major energy revolution. The price of clean energy resources has been falling and the technology to use them has been improving rapidly. Many people are turning to clean energy because it’s cheaper, more efficient and better for the environment.
But what can you do if you want to invest in this movement? What are some good resources that will provide returns on your investments over time? In this blog post we will break down the top 5 renewable energy resources that are great for investment, alongside some suggestions of great stocks!
Solar energy is a useful clean energy resource that involves converting sunlight into electrical energy. This can be done through either photovoltaic cells or concentrated solar power plants. Concentrated solar power plants use mirrors to focus sunlight onto a receiver, which then heats up water to create steam that drives a turbine, thus creating energy.
Ultimately, your investment in solar energy is a great way to throw your support behind the renewable energy industry and take a part in reducing your financial carbon footprint.
If solar energy seems like an attractive market for you, here are some up and coming companies to invest in.
Wind energy involves capturing the power of the wind and turning it into electrical energy. Wind turbines use blades to capture the wind and a generator to convert mechanical energy into electrical energy.
Wind energy is very reliable, clean, and cost-effective, making it an attractive investment option. Furthermore, wind energy has been labelled as the ‘fuel of the future’, meaning that the resource cannot be depleted like fossil fuels which translates to a strong stability on the stock exchange.
Some top stocks for wind energy include:
Water energy is created through hydroelectric power. This involves using water to turn a turbine and create electrical energy. The water is used to power the turbine through gravity, pressure or pumps.
Hydroelectric energy is an attractive investment option, as it’s one of the most reliable and efficient forms of renewable energy. It also doesn’t produce any pollution or greenhouse gases, meaning that you know your money is ethically funding a greener future. Furthermore, the market stability of hydroelectricity means that it’s a low-risk investment.
However, hydroelectricity does have some uncertainty as an investment option. While wind or solar energy can be a constant source of ongoing energy, hydroelectric power is heavily impacted by weather conditions, such as droughts and floods. Therefore while sustainable, you may want to consider doing extensive research into the stock before investing your money!
The top hydroelectric companies to consider for investment include:
Hydrogen energy is created through the electrolysis of water. This process uses electricity to break down hydrogen and oxygen into two separate gases that can then be stored in tanks for later use.
Hydrogen energy is a great option, as it produces zero greenhouse gases but has high-efficiency rates when used with fuel cells or combustion engines which produce power from the byproduct of hydrogen and oxygen. Currently, financial analysts believe that a hydrogen economy could be the next big step in moving away from the existing fossil fuel system.
Hydrogen energy is currently an extremely attractive market with plenty of potential growth thanks to the rarity of natural resources used within the industry. For example, palladium and platinum are in high demand at the moment thanks to the high demand in the electric motoring industry. In return, the palladium and platinum outlook is looking extremely promising, with analysts expecting “compelling demand growth potential greatly enhances the likelihood of investment demand growth.”
Some top companies to invest in for hydrogen energy are:
Biomass Energy is created through the burning of materials. This can be done through combustion or anaerobic digestion. There are 5 types of biomass, these being:
- Agricultural residue
- Animal waste
- Forest residue
- Industrial waste
- Solid waste/sewage
Biomass is a great investment option as it’s a renewable resource that doesn’t rely on sunlight or wind patterns like solar and wind energy does. Additionally, there are plenty of sustainable materials that can be used for biomass energy, such as sugarcane, corn and wheat.
The main downside of biomass energy is that it can release harmful emissions into the air if not done properly. For this reason, it’s important to do your research before investing in a biomass energy company to make sure you’re supporting a responsible and clean operation.
Some top companies in biomass energy include:
Now you know the best stocks to invest in when it comes to clean energy! As you can see, there are a variety of options to choose from, so do your research and find the company that best suits your ethical and financial needs.