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What is Green Energy?
Green energy is any energy type that is generated from natural resources, such as sunlight, wind or water. It often comes from renewable energy sources although there are some differences between renewable and green energy.
The key with these energy resources are that they don’t harm the environment through factors such as releasing greenhouse gases into the atmosphere.
- Solar Power
- Wind Power
- Hydropower
- Geothermal
Solar
Energy
Wind
Energy
Biomass
Energy
Hydro
Energy
Is renewable energy a good investment?
The world needs more green energy to replace fossil fuels as an energy source. And strong demand tends to make a good case for energy investments such as wind and solar powers.
However, there are other factors that determine whether backing renewables with your money is the right decision for you. These include the health of the global economy, local regulation and policy.
When the global economy is strong, demand for power soars and its price grows. This means that the value of companies producing power begins to rise.
Green companies are also affected by regulations and policies in different companies across the world. Governments may mandate a certain amount of energy to be renewable or penalise companies who use fossil fuels, thus benefiting green businesses.
They may also choose to withdraw green incentives, pushing prices down.
The financial strength of individual companies are also important for investors. Companies with weak balance sheets can struggle even in a growing sector like green energy.
That is why it is important to research the different ways of investing in renewable energy before making a decision.
