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Invest in Renewable Energy

By Ted Nelson ecomii.com
March 20, 2009
File under: Climate Change, Green Economy

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Investing in renewable energy is not just for venture capitalists and banks. Anyone can, potentially, make a profit by putting their money into renewable energy.

Threats to the sustainability of our society also create business opportunities that innovative companies will take advantage of.

This promises to be a long-term trend, not just a fad: the need for a paradigm shift towards environmental sustainability will impact every industry, every individual, and every country. It will not go away. Energy is a sector that will be particularly impacted, as energy consumption produces most of the greenhouse gas emissions behind climate change.

The old ways of producing energy will give way to production methods which can safely be sustained over the long-term. Both established players and start-ups will likely play a role in changing the game. Here are a few ways any Joe six-pack can get in on the action:

1. Install renewable energy at home.

The most straight forward way to invest your money in renewable energy is to install solar and/or wind power. You can pay the full cost of your system up front or get financing, plus there are federal, state, and in some cases local subsidies to help offset the cost.

This is a long-term investment, which will pay you back every month over the life of the system. An option for those looking to go all in on this investment (like Jay Leno) is to install solar AND wind. During the daytime hours, when demand is at its highest, both will be producing. Then at night or in overcast conditions your wind turbine continues to produce.

2. Buy stock in publicly traded companies.

Between the recession and the fall in oil’s price, renewable energy stocks have suffered mightily over the past six months. However, if the commitment to renewable energy from both the public and private sectors is real then there will be some winners among publicly traded renewable energy companies. Check here for a few names of publicly traded renewable energy companies.

From a long-term perspective, the stock prices of established, “traditional” energy companies will be impacted heavily by whether or not they embrace renewable technologies. Eventually, investors will question the future of stubborn companies which refuse to change their ways and stick with dying technologies.

By the time those technologies die, however, those companies will be behind the ball on newer technologies and at a disadvantage. Beware, though, because those companies counting on technologies that don’t pan out may flop.

3. Use an environmentally conscious financial adviser.

There’s no need to go it alone when investing in sustainable businesses. You can find an accredited financial adviser with whom you can build a portfolio that helps you live your financial dreams, as well as your personal values.

One example of a financial advisory firm focused on sustainable investing is JPS Global Investments. Their investment philosophy is based on simple logic: “Those businesses that adapt to today’s environmental & societal concerns will be tomorrow’s leaders. The shareholders will be the beneficiaries of their success.”

4.  Build green.

For most individuals, their home is their biggest investment. Building, renovating, and buying green is a good way to maximize that investment and make sure that it retains its value. Proper insulation and windows will save you money for years to come.

Energy efficiency is as important as renewable energy sources, but is more complicated to implement because it requires action from millions of individuals. Much like solar panels or a home-wind turbine, energy efficiency is an investment that will pay off throughout the life of your home.

For more in-depth information about investing in renewable energy, check out ecomii’s investing channel.

For more on how to build green check out ecomii’s green building section.

 
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2  Comments
  1. d nathan
    March 20, 2009 11am EDT

    Great Tips! I installed solar panels on my home last year, and was amazed by the amount of money i’ve saved in electric bills.

  2. Jim DC
    March 24, 2009 11am EDT

    Thanks. I especially appreciate the direction on where to start looking at green stocks. When will ecomii have more info on the investing side?

 
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