Feb 16, 2022
The global economy is moving quickly to switch to a new power source. Because of climate change, the world is moving away from carbon-based fossil fuels and toward cleaner energy sources. Over the next three decades, the global economy will have to be decarbonized, and it will cost more than $100 trillion to do so. Renewable energy will play a big part in this energy change. If you want to learn more about investing in the best renewable energy stocks keep on reading.
Many businesses invest in renewable energy, which puts them in a great position to benefit from this big investment trend. It's still true that some energy firms rise out among the rest of the pack as the popular renewable energy shares to purchase. Below are some of the best green energy companies If you want to invest in energy stocks:
Brookfield Renewable is the world's best at making renewable energy. If you looked at its portfolio in 2021, hydroelectric power made up more than 62% of it, which makes it a big player in the world's power market. On top of that, Brookfield has a lot of experience with the wind (both onshore and offshore), solar, and energy storage. Most of its energy is sold in long-term PPAs that bring in steady cash flow.
Brookfield has a great track record. Since the company was started, it has made an annual total return of 20%. Its growth has been fueled by acquisitions and new projects that have added to its portfolio over time.
Clearway Energy is one of the largest owners of renewable energy in the United States, and they have a lot of power plants. It adds natural gas power plants and district energy assets to its wind and solar energy portfolio. A PPA is a way for Clearway to make steady cash flow for itself.
Clearway has done a good job of making money for its shareholders over the years, with annual total returns nearing 10% since it was founded. Global Infrastructure Partners, a private equity firm, bought the company in 2018. Since then, its total annualized returns have more than doubled. Because of that relationship, it has a steady stream of investment opportunities to choose from.
First Solar is a company that makes thin-film solar panels. This type of panel, which is bigger than the others, produces more usable energy than other technologies. In that way, it's ideal for power plants that use solar energy. The company that makes solar panels has done a good job of making money for its shareholders. Since the company went public, it has made about a 9.5 percent total annualized return for its investors (IPO). As one of the world’s top solar panel makers, the company is in a great position to make even more money for its shareholders as the demand for solar panels grows.
There is a company called NextEra Energy that makes a lot of wind and solar energy. At its utilities in Florida and in its energy resources segment, which sells power under PPAs to other utilities and end-users, it makes this power. NextEra has a great history of making money for its shareholders. It has made about 700 percent of its money back over the last ten years. It has been the energy company's growth that has led to its strong returns.
The chance to help the planet isn't the only reason to invest in renewable energy. Many people have personal or ethical reasons for doing so. If you want to diversify your investments, you can invest in alternative energy. When the price of oil and other traditional energy sources are fluctuating, renewable investments may help keep things stable. Buyers and investors may also find renewable energy more appealing because it's becoming more affordable, which makes it more appealing.
When you trade or invest in renewable energy stocks, you're taking a risk. There is a lot of data that shows that the renewable energy market is going to grow, but it's not clear who will be at the top of the market when the industry matures. When investing in renewable energy stocks, it can be a good idea to look at a wide range of products.