If you are looking for a smart way of investing then you would like the idea of investing in renewable energy. By going about this in the right way, it is possible to make money without comprising on your sustainable lifestyle or principles.
In fact, there are some very good reasons why this kind of investment could turn out to be the best financial move that you make this year, in addition to it being great for the environment.
A Growing Industry
It is no secret that all over the world people are turning to renewable energy sources. This is great news for the planet and it is also good news for responsible investors too.
The likes of hydroelectric power, solar power, and wind power are all on the rise. For example, in the US, renewable energy technology made up 64% of all new generating capacity added in 2015.
2015 also saw the biggest annual increase of renewable energy all over the world, as 147 new gigawatts were added to the planet’s overall energy output. Solar energy made up over half of this increase, with wind power adding more than a third of the total.
You Can Combine Renewable Energy Investing with a Classic Investment
Naturally, not everyone wants to put all their eggs in one basket with just one type of investment. Instead, it can be a great move to mix in renewable energy with more of a classic, traditional type of investment.
This doesn’t mean that you have to buy shares in companies that don’t share your ecological outlook, though. Instead, you can choose to invest in the currency of a forward-thinking country that uses more renewable energy sources than others. In the long term, at least, this will prove a smart move, as economies more dependent on renewable energy are more likely to improve. Moreover, it is a sign of a state eager to find solutions to problems.
To do this, you will need to learn how to trade forex online and then research the countries that are most progressive in their energy generation. This is then an investment that can be done in different ways, as you can try either spread betting or CFD trading.
Diversifying your portfolio in this way will ensure that you don’t rely solely on green energy companies to make your money, as you will also be backing entire countries that are making moves towards a cleaner planet. At the time of writing, Sweden, Costa Rica, Nicaragua, Germany, and Scotland find their mention among the top nations in terms of moving towards sustainable energy sources.
Find Companies Who Make Green Living Easier
When you make an investment in renewable energy, you are hoping to make a profit and also support companies who are making a difference in the world. However, might you also find out about companies who could make green living easier for you as well?
You will need to do some research on the market in order to invest wisely, so it is clear that you will also find out information about companies that are producing interesting products or services. Of course, new companies don’t always work as hoped for, no matter how high their hopes are.
For example, Nanosolar topped a recent list from Plenty Magazine on green companies about to change the world. This firm made solar power affordable by printing solar panel onto metal sheets but their efforts ultimately ended in failure.
Investing in any new company is always a gamble but if you find the right company at the right time then it could be a boost for your life as well as your savings. A good example is Tesla, which has done a marvelous job in making electric cars attractive to many more people.
You Can Choose an ETF
As we have seen, finding the right company can be tough in a fast-changing market like this in which innovative technology is used for the good of the planet. For every renewable energy firm that changes the world for the better, there is another that fails.
However, we have also seen that it’s a thriving sector as it continues to entice more people with the idea of a sustainable lifestyle. Therefore, it could be possible that the best approach for you is to choose an ETF.
This will give you the benefit of investing in a number of different sustainable energy companies in one simple fund. This means that successes should balance out any failures. Hopefully, this will give bring you an overall profit that makes it all worthwhile.
Article Submitted by Community Writer.