7 Reasons Why You Should Invest In Renewable Energy

Are you looking to invest in renewable energy? Well, there are a few things you show know. Renewable energy can make a beneficial addition to your investments. Keep in mind that investing in renewable energy projects are most likely long term. This may put you at risk but should also be variable.

Here are ten things you should know about investing in renewable energy.

1. Clean power is cheaper than you might expect
Despite the assumptions that clean energy can cost a fortune, the clean energy systems are actually beneficial to your budget. Provided with the right conditions on investments, there are plenty of places where renewable energy makes sense.

Without the need of subsidies, people will start buying solar power systems for their homes and businesses. However, this is only because solar power makes sense in terms of efficiency and financially. Solar panels are selling for low prices when compared to what they had first priced. Additionally, solar and wind systems won’t be restricted to rooftops. Today, solar power systems are available as roof tiles and plants as they are increasing in demand as well as fulfilling the needs of local power users.

2. Uncertain policies are the biggest obstacle in renewable investments
As Governments are failing to lead the pathway towards renewable energy, the major debate has become too politicized due to the lack of stable policies. This is due to the tax relief of subsidies from fossil fuel and changes to renewable incentives. While politicians are listening to the wrong set of people, there has been a rise of interest in slowing down the growth of renewable energy as the majority of votes are for clean energy.

3. South Africa, Denmark, and Germany are great renewable role models
As Denmark and Germany have made powerful strides on renewable, clean energy, they have grown a large, diverse ownership base. Germany alone has over 800 renewable energy co-operatives, while Denmark has given communities the right to invest and make a profit from solar programs. The government of South Africa has also gifted with the best prices with a simple, yet effective strategy that creates sustainable local jobs as well as aligns with the long-term goals for the local government.

4. Developing countries could increase innovation
As more developing markets are starting to appear, the more we will see the flow of innovation. As energy innovation uses mobile technology, more people will own cell phones that anything else. Such changes have allowed renewable energy to soar in Africa by using a service-based model and systems that you can “pay-as-you-go” to be used for daily consumption.

5. Power of Social Media
Imagine trying to crowd fund in an internet-free world. The broadband availability enabled smart energy use due to the high amounts of information that is required to make energy work. Soon, smart technology will start controlling household appliances and turn them on or off automatically to fit the needs of consumers. Social media alone has the potential to raise awareness and build acceptance of new technology.

6. High Return Rate
One of the top reasons why you should invest in renewable energy is the expected high rate of return to come in the following years. This is due to the increase in official installation targets as some countries that big installation targets include the United States, Australia, China, India, Germany, Japan, Denmark and more. Renewable energy projects are currently at 8% and are expected to rise to higher levels within ten years.

Returns from renewable energy projects will have an average rate of 1.6% and an internal rate of 8% of the current rates. It is possible for investment returns as some projects will qualify for 30% uplift.

7. Stable Returns
Investing in clean energy stocks one another reason to spend. Renewable energy types are constant and easily predictable. While there may be both monthly and seasonal ups and downs, project returns will stay stable. The government incentives or subsidies are also set to be steady and only continue to rise. However, concerns regarding the reliability have been raised. While electricity prices may increase in the future, it will boost the earning of companies that are involved in clean energy.

There may still be some way to improve, but there have been leaps of innovation that have made renewable energy all the more affordable. This has helped renewables become a great investment opportunity. Investors should keep an open eye out for opportunities and remain open-minded in renewable opportunities that are available.