Responsible and Worthwhile Investment in Wind Energy Stocks

Written by: Seth Rogers
08/09/2019

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Investing in stocks of companies that manufacture wind energy infrastructure is a worthwhile investment. Your investment is a case of putting money in giving the world a better future by harnessing a green and clean renewable energy source. 6.3 percent of the electricity supplied in the US in the year 2017 was by wind energy. The wind energy sector is a growing energy sector both in the US and across the world and it is estimated that by the year 2050 wind energy will account for 18 percent of the global energy production. 

How to invest in wind energy stocks

You can invest in stocks offered by major energy companies that also manufacture wind energy infrastructure. Some of these companies manufacture components of different energy sources including wind energy generating components. Some companies manufacture wind energy turbines that can be used onshore and offshore. You can also consider investing in companies that run wind farms. Some yieldcos or companies that purchase wind turbines and build power generation infrastructure also pay good dividends to those who invest in their stocks. Small-cap funds and exchange traded funds that offer stocks from wind energy focused companies give good returns on investment to investors. These funds allow investors to invest in stocks of non-US wind energy companies. Though wind energy public companies are few compared to companies who have other forms of energy as their main, the companies are dealing with a growing energy sector that gives a good dividend and allows you to make a responsible investment that will give the world a cleaner and greener future. 

Stocks

The General Electric Company GE remains the giant in energy stocks including wind energy stocks. The company is not only a leader in the wind energy market in the US but also across the world. Pattern Energy Group Inc is another leader in the wind energy market. They sell wind energy to local utilities to make sure that non-fossil energy usage is increased. They have projects in the US and in Japan, Mexico and Canada. Vestas Wind Systems is the largest wind turbine manufacturer in the world. The company is dedicated to manufacturing infrastructure to generate wind energy. The company is based in Denmark but its main turbine manufacturing units are in Colorado. They recently partnered with TSLA Inc and have launched a project to integrate solar, wind and, battery storage technologies. NextEra Energy is another wind energy company that offers lucrative stock investments for investors. The wind farms owned by the company in North America generates 13,000 megawatts of energy every year. 

Advantages 

There are many advantages in investing in wind energy. The wind energy market is not only an emerging market but a growing market. With more and more households across the globe choosing green and clean energy, the future of wind energy generation is bright. Private sector companies like Facebook and MidAmerican Energy one of the companies owned by the American billionaire investor, Warren Buffet have taken steps to use 100 percent wind power by 2020. Many tax incentives have been given to companies manufacturing wind energy generating infrastructure. Many states in the US have passed laws to increase the amount of renewable energy usage including wind energy usage. This means that the number of wind-energy providing companies will increase and existing ones will need to expand. Experts suggest that investors invest more money in stocks of large companies in the wind energy industry and some money in small companies that are using innovative methods of generating wind energy. Investing in funds will also help investors earn a good dividend from wind power stocks. 

Disadvantages

Renewable energy including wind energy does not have consistent support from governments. Government policies are uncertain. While some governments give tax credits to renewable energy companies and subsidies to those who choose to use renewable energy including wind power, a change of policy decreases profits. There is more supply than demand in the renewable energy market including the wind energy market. While investing in wind energy is a responsible investment for socially conscious investors, the investor must make sure that the market climate supports the investment and shows trends that are likely to result in long term gains. Renewable energy including wind energy is strongly dependent on the whims of mother nature and stocks can be volatile. Oil prices have recently fallen globally and wind energy companies are finding it difficult to compete with oil as a source of energy. Wind energy technology is a growing industry that still requires development and innovation to be a feasible alternative to fossil fuels. 

Future

Governments across the globe have started backing renewable energy usage including wind energy usage and spending money to increase the capacity of renewable energy generation. The investments in renewable energy in countries across the globe in 2018 were three times higher than investments in coal and gas generation according to a study by the UN Environment Program. Offshore wind projects have recently attracted large investments that have increased the growth of the industry. Five offshore wind projects in Europe have generated investments in wind energy of over $74.5 million. In the last five years solar and wind energy has taken a larger share of the market than bio-energy. Improvement of technology and innovative methods of generation of renewable energy has lowered the cost of solar and wind energy generation. The growth of the demand of renewable energy worldwide is on the upswing and investments in wind energy stocks are set to give good dividends to the investor. 

Investing in wind energy stocks will result in long-term gains. Investors who are socially conscious and want to give future generations a healthy environment should invest in wind energy stocks. The growing demand for wind energy and the global trend of reducing the amount of carbon dioxide in the environment has resulted in companies improving the technology used to generate and supply wind energy resulting in better dividends for investors. By making an investment in wind energy, you will be making a profitable, clean, green and, responsible investment.


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