Why to Invest in Green Energy Stocks

Benefits of Wind and Solar Power

The current environmental benefits of wind and solar sources have grown immensely over the past decade proving energy stocks to be a wise choice in the marketplace. Solar and wind energy as power sources have come to provide quality, durable and reliable modes of electricity. Not only are these forces of nature friendly with the environment, they are also completely renewable, free and continuous. The political pressures and new found benefits of wind and solar power lead one to take a hard look at the available energy stocks. Technology can now suit the needs of efficient solar and wind systems, creating a larger percentage of available electricity storage and use. Solar and wind power energy stocks are also the best conscious choice to fulfill one’s duty toward the environment. Investing in alternative energy stocks such as wind and solar power prevent further pollution of the environment from the traditional fossil fuels and greenhouse gases. Forecasts call for a decrease in electricity from fossil fuel, coal burning resources and natural gas, making solar and wind energy stocks an incredible opportunity for potential wealth.

Renewable Energy Increases

Energy use has always followed the economic activity level, thus it only makes sense that household energy use has also taken a dive with the recession. One would assume then, that alternative energy stocks have also taken a dive, but this is not the case. What is interesting is that while United States energy use overall has declined, the use of alternative energy has ironically increased at this same time. Energy efficient appliances have been helpful in this decrease as it is estimated that the average American household energy use dropped from 99.2 BTUs in 2009 to 94.6 BTUS in 2008. Enticing incentives policies and technological advancements are also to blame for the rise in renewable energy, with incentive policies that will likely stay in place for quite some time, making alternative energy stocks a wise investment. According to recent flow charts released by Lawrence Livermore National Laboratory, the use of solar, hydro and geothermal power is on the rise. Wind power energy stocks may be worthy of a look as wind power alone has increased to .70 quads in 2009 from .51 in 2008 and is one of the three main factors in the decreased use of coal.

Why Invest

The best time to invest in alternative energy stocks is now according to the massive growth forecasted by the EIA. The EIA expects global energy to increase 43.6% between 2006 and 2030 with solar and wind energy increasing by 215% if traditional biomass energy continues in use. Alternative energy already comprises 2.4 million of the workforce making it larger than the competitive fields of aerospace and defense. The rising environmental concerns are the main culprit of the new attractiveness of energy stocks as well as 1) the climate change, energy security and pollution, 2) an aging conventional generation and economic growth and 3) the increasing cost competitive nature of alternative energy.

Essentially costs are falling for alternative energy sources allowing the market culture to make healthy gains with energy stocks. Technology improvements, economies of scale, negligible fuel price risks, new compatibility with existing infrastructures and emissions costs have paved the way for alternative sources of power.


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