$11 Trillion Clean Energy Revolution Coming! How can investors benefit?

Renewable Energy

In this article we will discuss top 5 stocks and ETF’s that might benefit from rise of Renewable energy sector

Governments all around the world are working on implementing renewable energy policies and according to BloombergNEF Green power is set to draw around $11 trillion of investment in the coming decades as the cost of renewables plummets.

US will be pushing for more renewable energy in the next decade as well. Biden will invest $400 billion over ten years, as one part of a broad mobilization of public investment, in clean energy and innovation. That investment is twice the investment of the Apollo program which put a man on the moon, in today’s dollars.

It`s not just because of government aid that Green energy is becoming so popular. Costs have been going down and it`s becoming more and more profitable as well. For example, Solar costs have fallen by 82% since 2010.

Renewable energy sector growth is great for our planet and nature. However, it might be great for making money as well. The renewable energy sector can potentially generate huge profits for early investors.

Here are some stocks and ETF’s that we think you should be looking into if you believe in the potential of green energy as strongly as we do:

  • NextEra Energy / Ticker: NEE

NextEra Energy is the world’s largest utility company. It had revenues of over $17 billion in 2017 and about 14,000 employees throughout the US and Canada. Its Market value is around $145.6 billion. Morningstar analyst Andrew Bischof said: “it offers the best of both worlds. A secure dividend and industry-leading renewable energy growth potential”. NextEra Energy is the world’s largest generator of wind and solar renewable power. NextEra is also working on “green” hydrogen. The company announced that it will invest $65 million in “green” hydrogen that will already be producing energy in 2023 for solar power. Despite the pandemic, the stock has managed to go up more than 20% year to date.

  • Renewable Energy Group Inc. / Ticker: REGI

Renewable Energy Group is a biodiesel production company organized in Delaware and headquartered in Ames, Iowa. The company operates 13 biorefineries and a feedstock processing facility. Renewable Energy Group develops and distributes biofuels, renewable chemicals, and related products. The company works with businesses across the U.S.  Company revenue has been steadily going up over the years and reached $2.64 billion in 2019. It is expected that Renewable Energy Group will be one of those companies that will hugely benefit from Biden’s clean energy initiative. The price of the stock has gone up more than 110% year to date.

  • Canadian Solar Inc. / Ticker: CSIQ

Canadian Solar Inc. designs, manufactures and sells solar module products that convert sunlight into electricity for a variety of uses. The Company’s products include a range of solar modules for use in a wide range of residential, commercial, and industrial solar power generation systems. In September, the company reported the completion of the sale of its Suffield Solar Project to BluEarth Renewables. The project is under construction and is slated to be one of the largest solar photovoltaic facilities in Alberta, Canada. The company is valued at around $4.16 billion and the stock price has gone up almost 80% year to date.

The last 2 instruments on this list are ETFs (Exchange Traded Funds). ETFs, offer investors the ability to diversify their investment into dozens of companies working in the sector instead of just investing in 1 stock, thus giving exposure to the whole sector and minimizing the risk of losing your investment because of 1 company going down.

  • iShares Global Clean Energy ETF / Ticker: ICLN

This fund offers a way to invest in the global clean energy index, including both domestic and international stocks in its portfolio. For investors who maintain a long-term bullish outlook on the alternative energy space, this fund can be a nice way to achieve broad-based exposure; ICLN includes companies engaged in various sub-sectors, such as wind power, solar power, and other renewable sources.  ICLN has more than $3 billion under management and has gone up almost 94% in value year to date.

  • Invesco Solar ETF / Ticker: TAN

Invesco Solar ETF delivers targeted exposure to solar power energy, making it potentially useful for betting on long-term adoption of this energy source. TAN offers exposure to about 35 individual components including both U.S. and international stocks. Invesco Solar Fund has around $2.7 billion worth of assets under management. It has gained a staggering 155 % of its value year to date.

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