The first and the immediate question—should one invest in renewable energy stocks? The answer is straightforward. If you are interested in immediate gains, “No”; if you have patience and think of long term investment, “Yes.” If you are an investor with moderate ambitions still “Yes!”
The global energy needs are increasing in geometrical progression. The possibility of stocks of fossil fuels and uranium running out are real. The cost of these fuels is rising and it is reaching the astronomical levels—a limit when a common man will have no choice but to shun them. Moreover, in the global context, oil—a very important source of energy—is used as a political weapon. With the available technologies, ocean energy is not cost-effective. Energy needs cover essential part of our daily life, without which, it is difficult to think how the life will shape! We need energy for vehicles, cooling, heating, light and what not!
The advantage of renewable energy is its availability on a continual basis. The resources from which renewable energy is created are regenerative and they can not diminish. The greatest merit of such energies is that they are harmless, conducive to maintain good environmental conditions with no pollutants, carbon and other harmful gas emissions related to the fossil fuels.
As the current indications go, this industry is bound to expand; it is showing lots of activities in all the related segments. Support industries are cropping up to help to create the total infrastructure. The global giants are on the lookout for competent partners for green or renewable resource technologies. Some technologies which have reached the advanced stage are not only economically viable, but competitive and profit-oriented.
At present, renewable sources of energy accounts for 3.4%, of the aggregate global power generation. As per the current indications, by 2070, 60% of the energy will be forthcoming through renewable sources. Renewable sources are the wind, sun, hydro-electric dams and biomass (organic matter).The benevolent Nature replenishes everything and provides perennial and cleaner sources of energy.
So, the stocks of alternative sources of energy are talk of the big markets. The potential for future growth seems to be bright. The stocks, after a long lull of about three decades, have begun to stir. Vested interests would not allow the projects of alternative energies to become successful, by offering cut-throat competition. Such forces know well that when the plans of alternative sources of energy succeed, they may have to down the shutters or reduce the prices of their fuels substantially.
The profit potentials are real. Some companies may expand well and take the shape of big giants. The existing oil-invested companies are waiting for an opportunity to jump the bandwagon and switch over to renewal energy options. Some of the established companies/companies that are on strong footing are: Daystar Technologies, Emcore, Evergreen Solar, Evolution Solar, Solar Enertech Corp. Spire, Suntech Power Holdings Co., Ltd. WorldWater & Power Corp and Xantrex
Politicians of the countries who had big stake in oil production have understood the reality; oil facilities are mostly under the threat of terror attacks, which may cause the prices to rise further. Oil drilling expenses are also mounting as the oil producers have to tackle distant sources and go drilling deep.
For post recession portfolio, solar energy stocks may prove a good investment option. The following examples will give some indication and confidence to the investor.
- FSLR-First Solar: Net gains of $37 a share in 2009. The low hit at $100.90 and the high $207.51.
- STP-Suntech Power Holding Limited: Gain of $12 per share this year. The rates swung from $5.09 and $21.38
For an investor who is willing to take some risks, solar power is the best option. Global warming cry is not hysteria, but the genuine concern for the humanity. Solar power technologies can save the situation. This area is receiving the highest attention in all the Nations and the top leaders are taking deep interest in the matter.