A Guide to Investing in the Best Renewable Energy Stocks

The world’s population is significantly increasing, with approximately 1% per annum. That equates to around 82 million people. The increased number of people attracts the need to have more energy resources. Besides, developing countries are focused on improving the standard of living. That insinuates that more effort is required to introduce basics like clean water and electricity to where it is limited.

These aspects, together with the higher reliance on energy technology, are tailoring the need to think of a considerable supply of reliable energy resources. However, the primary concern to growing energy production is the effects traditional sources of energy have on our environment. Taking oil power and convectional coal as an example, they are accountable for the increased disruption to our ecosystem. Research has that climate change is the significant concern people will experience in some years to come.

4 Best renewable energy stocks

So the best way to avoid such climate change pandemics is investing in the growth and implementation of other clean energy alternatives. This way, you’ll be able to meet the global energy demand while protecting the environment.

Renewable Energy Stocks
Renewable Energy Stocks

Many companies out there are focused on developing a technology that can help to harness renewable energy resources like hydro, wind, solar, and geothermal power to supply to consumers.

1. TerraForm Power

Operating in Western Europe and North America, TerraForm Power runs by generating and selling power. It does that through long-term contracts. Usually, approximately two-thirds of the power energy generated basically comes from the wind resource. The rest is harnessed from solar energy. What makes this company attractive to many investors around the world is that they order shareholder returns. TerraForm company produces up to 3,634 megawatts of wind power, and solar energy, which is utilized by 65% individuals in the USA, 26% in Europe, and the remaining percentage are shared in Chile, Canada, and Uruguay.

2. Brookfield Renewable Partners

Increasing partnership, especially with TerraForm power, was the best news announced by BEP. That led to an increase in sales from 51% to 65%. $80 million shares are added in the investment every year to boost operations of Brookfield Renewable’s funds. That makes it a smart stock option to purchase to get into solar. Brookfield Renewable partners possess up to 843 renewable energy power facilities in Latin America, North America, and Europe, which can generate up to 16,300 megawatts of power every year.

3. First solar energy

Being the leading company as far as solar panel innovation is concerned, this firm has created an undivided technology that guarantees easier and cost-effective use of power–especially for industrial and commercial clients. Instead of using poly-silicon, a traditional material, to create solar panels, the company utilizes a technology referred to as proprietary thin-film. Despite this new technology not being similar to the traditional one in terms of the amount of energy generated, modern versions are on the way.

Due to the company’s popularity, they usually have a considerable supply of orders. That has led to its success with enough cash ready for more investment in terms of growth and research. In 2018, the company recorded an increased net sales, estimating the earnings per share to be $2.25 to $2.75. This value was an increase compared to their share estimation, which was $1.40 to $1.60 in 2018.

4. NextEra Energy

If you compare the sheer size of most clean energy generating firms, NextEra energy becomes the leading producer. It is the largest utility firm in the globe, both producing power and selling it to consumers. The two major categories fall under the company’s umbrella: NextEra Energy resource and Florida power & light.

A NextEra Energy resource is popularly recognized in the production of wind and solar power. It works auxiliary, NextEra Energy Partners, a public firm that owns and runs properties in the clean energy world.

Florida power & light is the leading distributor of natural gas and electricity in the US, supplying over 5 million consumers.

Typically, NextEra Energy boasts of massive power plants, of which over two-thirds of its energy is renewable wind source. It uses a long-term contract to sell its renewable energy, hence maintaining a predictable flow of cash. Investors who consider diverse organizations are choosing to invest in NextEra renewable energy resources.

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Bottom line

Investing in renewable energy resources is a great idea. You only need to research the best renewable energy stock before risking your cash.

Written by M Eduard

M. Eduard was born and raised in San Francisco, CA. Eduard spent his MBA summer internship at Sungevity, a residential solar energy retail company in Oakland, CA. He started this website to share his knowledge about renewable energy.