As the industry went through several boom-and-bush cycles, renewable energy stocks have been on the wild for centuries. We’ve seen some stocks go up, some big solar panel manufacturers go out of business, and even financial companies go bankrupt.
Investors have done something in renewable energy over the past two decades and where the industry is today, I am now very upset about renewable energy stocks.
History of development
Renewable energy is growing worldwide. The table below shows the growth of wind and solar power in the United States during this century. You can see that they continue to grow rapidly. But wind and sun still make up only 12 percent of the electricity generated in the United States
Wind and sun are now winning over coal, natural gas and nuclear power, so there is no doubt that they are growing. And as wind and solar become more economical, more energy storage and new technologies such as hydrogen may emerge. The future is bright for renewable energy, as long as the companies that buy it make money on their products.
The financial picture is becoming clearer
There are many ways to invest in the renewable energy industry, but I use the sun as a proxy because there are more public companies like wind and have a longer history in public markets such as energy storage or hydrogen.
Solar costs have changed dramatically over the past decade, as costs have fallen sharply, some companies have gone bankrupt, and new business models have emerged. Today, we are entering a more mature stage in the industry, where companies are building technological benefits and metrics to create a competitive pool. The result you can see below is that profitability is increasing over time The first sun (NASDAQ: FSLR), Infusions Energy (NASDAQ: ENPH), SolarEdge Technologies (NASDAQ: SEDG), And Solar energy (NASDAQ: SPWR).
As the solar industry grows, other parts of renewable energy are not as mature. For example, energy storage, hydrogen, and even emerging nuclear technologies are financially stable and close to a new stage in the business cycle rather than mature.
The good news for investors is that we can always find profitable companies with competitive pools in renewable energy.
How to invest in renewable energy today
I divide renewable investments into three categories: finance, solar stocks and estimated investments. And there are good opportunities in all three.
Finance lenders are often companies that build or purchase renewable energy projects with long-term contracts to sell electricity. They generate very stable cash flows and often come with profits. Brookfield Renewal Partners (NYSE: BEP) And Next Ira Energy Partners (NYSE: NEP) Both are leaders here and are vulnerable to wind and solar projects. They are starting to find new technology projects such as energy storage, which can be used for grid services. The reality of energy trading is that it requires a lot of investment to build projects and generate renewable energy – and Brookfield’s renewable partners and NextEra Energy Partners are key to realizing clean energy.
I am partially focused on the solar industry because there are very few wind-powered companies in the United States that do business publicly, but there are some leaders in solar energy, such as solar panels, such as the first solar, solar, residential and commercial solar. And Enphase Energy in module-level power electronics. All three companies are emerging as industry leaders due to the rising tide of solar power and competition.
Presumably, I saw a big chance in hydrogen. Flower power (NYSE: BE) It is an industry leader in solid oxide fuel cells; It has built nearly $ 1 billion in reserve power with new markets on the horizon, such as electrolysis and naval power. If costs go down, Blue Energy could be a big winner in the hydrogen industry.
Look for a safe investment in Bloom Energy, Brookfield renewable partners or something in between, there is something for everyone in the renewable energy industry. And as the industry grows, we must see that profitability increases, which is good news for investors who can buy and hold the best companies in the industry for a long time.
This article represents the author’s opinion which does not agree with the “Official” Counseling Site of the Moteli Ful Premium Advisory Service. We are motili! Asking for an investment concept – even our own – helps us all think about investing and make decisions that will make us smarter, happier and richer.