Green Power Investing: The Why’s and How’s

Why’s and How’s of Investing In Green Power

Green energy is a hot topic in a worried world about the growing impact of climate change. Power generation that doesn’t rely on fossil fuel burning to heat our homes, power our cars or produce our energy is the subject of a lot of attention and is generating an increasing number of investment opportunities. Current top green power competitors are water, wind, and solar. If you like playing the stock market, and want to move away from conventional stock trading, you could invest in this growing market. Add some green to your portfolio!

Keep reading to learn about the three main types of green stocks you can invest in and profit from.

Water Stocks

One of the most important natural resources we have is water, a survival requirement. There’s considerable fear that as the global population continues to grow, we run out of clean water sources. The first major metropolitan area predicted to run dry is Cape Town, South Africa. This is obviously a considerable threat, because water is what powers basic human function.

Water shortage is a global fear and isn’t contained to any one country or region. Add climate change to the mix and we have a veritable water crisis on our hands, with more demand than supply cropping up.

Such problems have provided a strong opportunity to invest in water-collecting, cleaning and distribution companies. American Water Works (AWK) is the largest water utility provider in the US, and it has plenty of customers. Aqua America (WTR) provides almost 3 million people with water, while ITT Industries (ITT) manufactures purification systems that help make water drinkable.

Additionally, hydropower involves a great deal of technology, a great deal of infrastructure and a lot of power-hungry clients. While the hydro sector has few pure play companies, three publicly traded energy producers with significant amounts of hydropower in their portfolios are PG&E Corp. (PCG), one of the largest hydropower operations; Idacorp (IDA), which has 17 hydropower projects; and Brookfield Renewable Partners LP (BEP), a major renewable energy company headquartered in Toronto, Canada. You could consider investing in any of these to add some power to your portfolio.

Wind Power

The wind, and the power it can produce, is the next most frequent source of renewable energy after hydropower. Wind farms are sprouting around the globe. Australia, Europe and the US all invest in wind as a key source of renewable energy. The wind company involves not only power generation and selling but also wind turbine design and construction. At present, for more than a tiny fraction of their power generation needs, few countries rely on wind, but many are interested in this possibility.

If you are interested in this renewable energy, look for wind farms that sell wind-generated electricity or wind turbine technology companies. Again, few pure-play stocks trade in the wind here, but quite a few companies have a presence in this market. Some interesting businesses include:

  • General Electric
  • NextEra Energy Partners LP 
  • Siemens Gamesa

Investing in wind is a great idea because it’s free, renewable and produces energy which is always necessary!

Solar Power Stocks

Another green power investment is solar energy. Sunlight powers homes, buildings and a number of other objects from lighting to radios. While concern for fossil fuels continues to grow, solar energy will look bright in the future.

If you think the sun is just beginning to rise in this sector, focus your attention on firms making solar energy panels that will benefit from these as households and businesses are gradually embracing solar power. First Solar (FSLR), JinkoSolar Holding Co., are the leading solar panel manufacturers. Ltd. (JKS) and Sunpower Corp. (SPWR), designing, manufacturing, and selling panels and components.

There is more to solar than panels, of course. A wide variety of companies pose investment opportunities from products to installations, including:

  • Sunrun
  • Vivint Solar
  • Guggenheim Solar ETF

Any of these companies would make a solid investment if you’re interested in renewable energy or green power. Consult a financial advisor before you invest, though. You should know what your options are and how to build the safest and most profitable portfolio.

Clay Miller
the authorClay Miller
I am the creator/writer of and I'm an advocate for oceans, beaches, state parks. I enjoy all things outdoors (e.g. running, golf, gardening, hiking, etc.) I am a graduate of the University of Kentucky (Go Wildcats!!). I'm also a huge fan of the Pittsburgh Steelers. I was born and raised in the beautiful state of Kentucky.

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