According to the United Nations Environmental Program, the 2018 capacity investment on renewable energy reached USD 272.9 billion, which is triple the investment in the fossil fuel generation.
This statistic alone is enough to show you type of investment potential that renewable energy sector has.
UNEP further asserts that in 2018 alone, renewables generated about 12.9 per cent of the global electricity. This amounted to the elimination of close to 2 billion tons of carbon dioxide emissions in the world.
With that said, it is clear that investing in renewables is not only profitable but also safe for the environment.
So how do you invest in renewable? In case you are an investor who is interested in going with renewables, here is how you can invest.
Shares in Renewable Energy Companies
The first way to invest in renewable energy is to buy individual shares from companies that deal in renewable energy. However, you should focus on companies that have diversified on different type of renewables or industries.
The reason for this is simple. While the near future promises better returns on renewables, the prices are incredibly volatile as people still have concerns about this new market.
Nonetheless, with additional understanding, you will love the type of investment that you will make here.
Invest in Exchange Traded Funds
Exchange Traded Funds or ETFs are a riskier approach. However, the returns are often high. The advent of the ETFs has however, took down the risk.
The best thing about ETFs is that they function like the individual stocks, but are in fact a combination of several other different stocks.
In short, you stand a chance to reap more. You also enjoy better diversification that keeps you safe across many other green energy companies.
If you want a place to start from or more info on ETFs, you can visit the website Lion Alternative Energy PLC.
Invest Directly In Renewable Energy Projects
Several companies that trade in renewables have invested directly on projects that focus on renewable energy. From affordable power/ energy to community owned solar powered farms, the choices are unlimited.
Solar farms have become integral in developing economies. In the near future, it is estimated that they will be one of the most reliable means of livelihood.
Thanks to its safe technology, the switch to renewable energy is ideal. It is commendable and should, therefore, be accelerated. Currently, the industry is in the right track and several people will still benefit from it.