As an investor, you’re always looking out for the next big industries and companies to buy stock in. You know that while it’s crucial to have some reliable picks in your portfolio, like blue-chip companies, you also need to be innovative and take a little risk on companies that are on the rise. That way, you can beat out other investors and purchase shares before they become too expensive.
One of the best industries to invest in right now is renewable energy. These types of companies have the power to change the fabric of our everyday lives and help us sustain the planet’s existence. Since they can have a positive impact on the environment, they can and will be widely adopted around the globe. If you want to get in on the ground floor of renewable energy, now is the time to invest.
If you’re ready to get started with energy investing, you’ll first need to research what exactly it entails, and which renewable energy companies are the best ones to invest in.
Let’s take a look at why this is such a booming industry right now.
Why Renewable Energy Is So Popular
Renewable energy includes the following:
- Solar power
- Tidal power
Renewable energy like these and others is on the up and up right now and will continue doing well in the future due to a few factors. It is more sustainable and cleaner than fossil fuels, making it a good alternative energy for consumers and businesses around the world. Coal and other fossil fuels are contributing to global warming, which is the increasing temperature of the Earth. That increase is leading to the melting of the ice caps, the rising of the ocean levels, extreme weather, deadly heat waves, severe droughts, and wildfires.
Renewable energy is also popular because it is cheaper than energy from fossil fuels. According to Forbes, rapid cost declines have led to renewable energy becoming the cheapest available source of energy in the United States, and that’s without subsidies (you can get government subsidies if you use solar power, for instance). In many areas of the United States, it’s cheaper to build new wind power facilities than to run existing coal facilities.
As global warming intensifies, people are going to rely more and more on renewable energy, which is why it’s smart to begin investing in it now. Your energy investing portfolio could include:
- Individual stocks of public companies
- Energy mutual funds
- Exchange-traded funds
Now that you’re ready to begin energy investing, check out these renewable companies to look out for.
When you talk about energy investing in renewable energy companies, Tesla is at the top of the list. Tesla is known mostly for its cars and its charismatic founder, Elon Musk. Along with being the leader in electric car manufacturing, they also own a SolarCity subsidiary and do solar panel manufacturing. The stock price for Tesla is at around $276 per share, so it’s best to save up so you can purchase a substantial number of shares. If you had invested $1,000 in Tesla when the company went public in 2010, your share would be worth more than $22,000 now. The company’s stock is predicted to only keep going up in value.
Neoen is a renewable energy company that was founded in 2008 and operates out of Paris, France. They design, develop, finance, and operate solar, biomass, and wind power plants in France, El Salvador, Zambia, Jamaica, Portugal, Mexico, and many other countries. Neoen launched in late 2018 with a market capitalization of more than $1.5 billion. They are a Tesla partner and have worked with the company to bring the world’s biggest battery storage project to Australia. If you want to invest, Neoen is now trading at 20 Euros (about $22) per share. Energy investing in this company is wise since it has a global focus and a great partner in Tesla.
3. NextEra Energy
NextEra Energy is the largest utility company on the planet. It has a market capitalization of more than $75 billion, and it generates more solar and wind power than any other company around the globe. The company is based in America, and they are one of the largest capital investors in infrastructure. Through 2020, they are going to invest $40 billion into the country. Fortune recognized NextEra Energy as one of the top 20 innovative companies in the world. If you’ve heard of Florida Power & Light Company and Gulf Power Company, NextEra Energy also owns them. The stock price is around $187 per share and is set to rise, with the company’s continuing investment in renewable energy. This is an energy investing opportunity you don’t want to miss.
4. TPI Composites
If you want your energy investing portfolio to be focused on wind power, go with TPI Composites, the biggest manufacturer of composite wind blades for the wind energy market supporting global wind turbine producers. The company has been manufacturing large-scale composite structures for more than five decades. They operate out of Arizona and have factories throughout the U.S., Turkey, China, and Mexico. Its stock price is just under $30 per share, which is way up from its share price of $13.56 in 2016. This year, TPI Composites is set to open a wind blade-manufacturing hub in India.
5. TerraForm Power
If you’re interested in energy investing with wind and solar, TerraForm Power is a good pick. TerraForm Power owns and operates a 3,600+ MW renewable power portfolio that includes wind and solar assets in Western Europe and North America, including Mexico. Its majority shareholder and sponsor is Brookfield Asset Management, which is a global alternative asset manager with over $258 billion in managed assets. Its stock price is at $12.37 per share, and with renewable energy taking off in the coming years, it is set to go up. The company is a SunEdison yieldco, and it was taken public in 2014.
Getting Started with Energy Investing in Renewable Energy
Once you’re ready to begin energy investing, you need to sign up for an online trading platform where you can buy and sell renewable energy stocks. Some of the more popular platforms include Ally Invest, which charges $4.95 per trade, Merrill Edge, which charges $6.95 per trade, TD Ameritrade, which also charges $6.95 per trade, and Charles Schwab, which charges $4.95 per trade. You shouldn’t make your picks solely based off the fees. Instead, look at everything you get when you sign up, like valuable research or access to financial advisors. You may even be able to snag a promotional deal that will end up costing less in fees.
If you want to continue to investigate the renewable energy industry, check out websites like CNBC’s Energy News section and U.S. Energy News on the Energy News Network. You can also do further research by clicking on the investor’s relations tab on the websites for the renewable energy companies you invest in. There, you’ll find quarterly earnings, news, and much more.
You should also sign up for Energy Advantage Investor, a newsletter by Dr. Kent Moors. If you’re going to be serious about energy investing, you need to keep up with the news and learn about the best companies to invest in. That information can be delivered straight to your inbox. After reading an email, you can go out there, invest in renewable energy companies, and begin boosting your portfolio.
Dr. Kent Moors is an advisor to the highest levels of the U.S., Russian, Kurdish, Iraqi, and Kazakh governments, and he’s been a private consultant for law firms, private companies, and financial institutions in 25 countries around the world. He’s a regular commentator on Fox Business Network, ABC, Bloomberg TV, RTV, CNN, and CBS.
Over 40 years, he has consulted on energy to his clients, and now he’s bringing his knowledge to the public with Energy Advantage Investor. If you want access to Moors’ top–notch information and expertise, as well as the scoop on energy investing, make sure you sign up for Energy Advantage Investor today. You won’t regret it.