The term ‘green energy’ is one that has been used with increasing frequency in recent years, particularly as consumers and businesses search for a renewable means of powering every day processes and appliances. Investing in energy has always been a particularly favorable avenue for those keen to build a reliable investment portfolio that will bring in a good return. Now, more backers than ever are beginning to appreciate the benefits of green energy; those who are considering investing in this area may be wondering if they should follow suit, and if so, how?
The Rise of Clean, Green Energy
Renewable energy is just that: a means of generating energy that comes from natural, and therefore reusable, sources, including wind, sun, tides, and water. As more people turn towards natural energy in a bid to cut costs and emissions, and concerns surrounding the planet’s remaining fossil fuels increase, demand for these kinds of power sources has been rising rapidly.
Indeed, technological developments and a better understanding of renewable energy have made such means of powering the planet more efficient than ever before, with solar and wind power particularly favored. Progress in such sectors has gathered pace in recent years, and now more companies than ever before are noticing returns and, most importantly, results. It remains to be seen whether these greener energy companies will profit from the decline of fossil fuels, but the current signs are favorable.
There are numerous reasons to invest in green energy, least of all because alternative energy is now, by far, the fastest growing sector in the energy industry. As demand for cleaner and more readily available power increases and fears surrounding recent, and future, oil crashes come to a head, it’s little wonder that people are now searching for an alternative.
Last year, some $367 billion was invested worldwide, topping fossil fuel investments by some $100 billion. The returns being made on green energy investments are, for the first time, demonstrating a considerable increase, while the stability of returns, the low risks associated with this newer and more dependable technology, local community impact, and much lower bills are also helping to place green energy firmly into many investors’ ‘to consider’ list.
Due to increasing environmental awareness, more people than ever are looking for green energy sources for their homes and businesses, ensuring that there will always be a company in need of investment. Now, factor in the transparency of green energy and a general public optimism towards such projects, and one is left with an investment opportunity that seems too good to miss.
Tips for investing in green energy: getting started
Once the decision is made to take inspiration from fellow financiers and go green, how should the investment be approached? The first thing potential investors should be doing, before anything else, is carrying out their own research; yes, green energy has been discussed in just about every industry for the last few years, but before making any big decisions, investors should consider whether they have managed to pick out enough important, relevant details about green energy.
Make sure to be savvy on every form of renewable investment, understand how technology and processes operate, be clear on all of the risks involved, and seek out particular companies within the sector. Case studies are a great way to analyze the market before falling into any traps, and can help to extrapolate potential profits and problems into the future.
As this is a relatively young sector, it can be difficult to identify any long term trends, and so any investment can be seen as a shot in the dark to some extent. As with all investing though, immersing yourself in the latest news, research and predictions within the sector can help to develop instincts for where the market is heading.
Now is also the time to seek professional advice, and there are numerous investment companies that will be happy to talk potential investors through such a big decision. Fortress Investment Group, which is currently overseen by principal Peter Briger, is one such company. A leading global investment management firm, Fortress has years of experience in guiding investors through a variety of sectors and has its finger firmly on the pulse of many cutting edge markets, renewable energy being one of them.
One glance at the resume of Peter Briger in Forbes‘ list of world billionaires should be enough to reassure potential investors that they’re in the right hands, which is imperative when making such a big decision. For the investor, the route chosen and the investment to be made is a personal judgment call, but seeking the advice of those such as the team at Fortress will prove invaluable.
After doing research, seeking advice, and thinking very carefully about the risks involved, it’s time to make decisions about the types of companies to invest in and their positions within the current market. Securing a foothold in the sector now is a wise move, as green technology will doubtless grow to prominence over the next 50 years as we move further and further towards exhausting fossil fuel supplies. The difficult decision for investors is choosing which technology to back.
Be sure to enter each investment with both eyes and mind open, and be aware of the potential that’s all around – it is time to become a part of this planet’s future.
