Investing in Renewable Energy



Investing in renewable energy

The rise of oil prices and geo-political instability has been a major force in contributing to the rise of global investments in renewable energy. The renewable energy market has become a major player in the global economy attracting giant companies such as Sharp, Royal Dutch Shell and Siemens. The need and awareness for a cleaner and sustainable source of energy has led to the widespread application of renewable energy to satisfy consumer demand for energy. Governments of most countries are providing incentives to promote use of solar, wind, biomass and other forms of alternative energy.

Why to invest in renewable energy?

Investing in renewable energy offers exposure to the exciting and fast paced growth in the green energy market. With the backing of the government, the renewable energy market is destined to flourish while contributing towards reducing the carbon footprint on earth. Green energy companies have gone from small companies to being major players offering lucrative opportunities to investors. Use of renewable energy has become crucial for developed countries as well as emerging economies. To face the challenges of global warming, climate change, low carbon footprint and the need to develop technology for harnessing renewable energy is a must. Investing in renewable energy promises guaranteed returns, for investors, against such a backdrop.

Ways to invest in renewable energy

Investing in renewable energy is easy for an investor. Here we have listed various options by which you can invest in renewable energy.

Stocks:

Companies involved in the renewable energy industry today are predicted to be the leading companies in the global market of tomorrow. Purchasing stocks such as wind stocks, biofuel stocks, geothermal stocks, solar stocks, hydroelectric stocks and other green stocks ensure profitable returns from the flourishing renewable energy industry.

List of top Green Stocks:

  • General Electric (GE)
  • Epistar Corporation (TW10)
  • Applied Materials (AMAT)
  • MEMC Electronic Materials (WFR)
  • Accenture PLC (ACN)
  • Archer Daniels Midland (ADM)
  • International Business Machines Corp. (IBM)
  • AES Corporation (AES)
  • Honeywell (HON)
  • Autodesk, Inc. (ADSK)

Mutual Funds:

Mutual funds are a great way to make profit from the renewable energy market. The management of the fund by highly qualified investors ensures high returns. Investors can pool their money in either open-end or closed end mutual funds.

List of top Green Mutual Funds:

  • Allianz Global Eco Trends Fund (AECOX)
  • Calvert Global Alternative Energy Fund Class C (CGACX)
  • Calvert Global Alternative Energy Fund Class A (CGAEX)
  • DWS Climate Change Fund Class A (WRMAX)
  • DWS Climate Change Fund Class S (WRMSX)
  • Firsthand Alternative Energy (ALTEX)
  • Gabelli SRI Green Fund class AAA (SRIGX)
  • Guinness Atkinson Alternative Energy Fund (GAAEX)
  • Leuthold Global Clean Technology Fund (LGCTX)
  • New Alternatives FD Inc (NALFX)
  • Gabelli SRI Green Fund class C (SRICX)
  • Winslow Green Growth Fund (WGGFX)

ETFs:

ETFs offer good exposure to the renewable energy market and are reliable to gain returns from investing in green energy. Investments are made in alternative energy to obtain high returns.

List of top Green ETFs:

  • PowerShares WilderHill Clean Energy (PBW)
  • PowerShares Global Wind Energy Portfolio (PWND)
  • PowerShares Global Clean Energy Portfolio (PBD)
  • PowerShares Cleantech Portfolio (PZD)
  • First Trust Global Wind Energy (FAN)
  • First Trust NASDAQ Clean Edge (GRID)
  • Market Vectors Global Alternative Energy ETF (GEX)
  • Market Vectors Solar Energy (KWT)
  • iShares S&P Global Clean Energy Index Fund (ICLN)
  • iPath Global Carbon ETN (GRN)
  • Guggenheim Global Solar ETF (TAN)