Sustainable energies like solar, wind, and geo-fuels offer investors some serious potential for effectively growing their portfolios. The sustainable energy market is predicted to see a 7.5% compound annual growth rate. With so much growth potential on the horizon, investors are clamoring to choose smart energies and related technologies to invest in. If you haven’t added sustainable energies your investment portfolio, you might find that now is the right time to do it. The following information includes tips for adding renewable energy to your investment portfolio.
If you’re wondering what to invest in when it comes to global sustainable energies, you’ll have a lot to consider, but you will also have a myriad of choices. When trying to narrow down stocks, consider looking at some new and exciting technologies that are occurring worldwide. From traditional-looking roof tiles that are actually solar panels to algae-based biofuels that are wowing investors, technology in the energy sector may be the ideal place for you to invest. Certainly, investing in something new and uncertain may well have its risks, but if you take a look at wind and solar leaders and what they’ve been doing to phase in new technologies to their offerings, you can gauge the exposure that these technologies are experiencing and invest accordingly.
The Political Scene
Investing in U.S. based alternative energies may not be as popular as it might have been if another candidate had taken the realm, one more committed to the environment, but even in the U.S., tax incentives for sustainable energies remain. If you are looking to invest, now is a time to snap up good deals in the U.S. for sustainable energy stocks. However, you may want to look abroad where the impetus to transition to alternative energies is strong. Germany, for example, is a solar energy leader. Similarly, France, which like Germany, has frowned on practices like fracking, is embracing sustainable energies with great enthusiasm. Many investors are looking at countries that are pushing sustainable energy forward. These are places that are definitely drawing the eyes of investors.
Listen to Experts
If you aren’t an expert when it comes to the global energies market, try to spend time getting up to speed with what you need to know about various energy types. For example, you can learn how various energies are performing from industry experts. OilandEnergyInvestor.com have some details about how traditional and renewable energies are performing in the marketplace. You can also check out how worldwide investors are investing in global sustainable energies and follow suit.
Look at the Trends
Within the field of renewable energies, investors will see interest rise and fall. While solar recently experienced a bit of a cool-down as countries like China and Japan cut back on investing in large-scale solar projects, energies like off-shore wind have seen exciting growth in places like China and the UK. Even in ocean-bordering U.S. states, off-shore wind is proving to be attractive to investors. By examining trends in the alternative energies sector, you can better understand where the world’s interest is shifting. While many of these interest peaks may be short-lived, they often indicate where one might benefit with a long-term investment.
When it comes to investing in renewables, you don’t have to bet the farm on one particular energy type. Consider diversifying your investments to see how they fair over the next couple years. You can make changes as you go, of course, but with so many volatile changes occurring within the energy sector, it makes sense to play it safe and diversify. Solar and wind, for instance, are still the major players when it comes to sustainable energies, but biofuels and even newer energy alternatives might be worth including in your portfolio for their growth potential.
Think Outside the Box
If you aren’t ready to invest in a company that makes solar panels, consider investments that aren’t necessarily straightforward investments in renewables, but certainly capitalize on the sustainability push forward. Think about investing in sustainable buildings. This type of real estate is proving extremely valuable. Investors realize the real estate coupled with renewable energy advances has serious value. You might also consider investing in traditional energy companies that are doing exciting things with renewable energies.
Enhance your energy portfolio by including sustainable energy investments. The renewables sector is growing, so it’s important to consider it for investment. By taking the time to explore sustainable energy companies, projects, and new technologies, you can learn more about where to invest for both the short and long terms.
Millie Gould is passionate about green energy, and as an investment mentor to those just starting out, she has a lot to shout about!! Read her investment thoughts, tips and tricks around the web.