Global warming & climate change along with increasing oil prices have forced government to rethink about renewable energy sources.
New government spending, regulations, favorable policies & incentives together have renewed the interest of investors for investing in renewable energy projects.
Today, wind energy, solar energy & biomass energy are the 3 emerging renewable sources of energy worldwide.
According to a 2015 projection by International Energy Agency, by 2040, renewable energy generation will reach a share of 50% in European Union, around 30% in china & Japan, and above 25% in US & India.
Renewable energy is getting cheaper year-by-year due to new & innovative technological advancements in green energy sector. In next 10 to 15 years, the price of renewable energy will fall dramatically. It will allow the industry to easily compete the non-renewable sources of energy than ever before.
You can also participate in this clean energy drive by installing renewable energy projects or by just buying stocks of renewable energy firms. Here are 10 smart reasons to invest in renewable energy stocks:
(1) High Rate Of Return
It is one of the best reasons to invest in renewable energy stocks. Renewable energy stocks are expected to give higher rate of return in coming years.
It is due to increased official installation targets of renewable energy projects by government of several countries. Some of the countries with great installation targets include US, China, Australia, India, Germany and many more.
A typical rate of return on a renewable energy project would be 6-8% at current rates. It is expected to increase to a much higher levels in next 10-15 years.
Renewable energy is all set to compete non-renewable sources of energy like coal, oil and other fossil fuels even much better as compared to present scenario.
Your investment in clean energy stocks today can fetch higher rate of returns in a long term investment horizon.
- Renewable Energy Project: Shutterstock