Benefits of Investing in Renewable Energy

Have you considered investing in renewable energy? You may already have got a solar panel on your roof, that’s great. But perhaps you should consider investing in renewable energy projects as well, with the objective of making money out of them, while having the satisfaction of doing your bit for the world.

We are going to discuss some of the benefits of investing in renewable energy. Just bear in mind that as with any investment, your capital would be at risk and the returns are variable. But as long as you do your research, you should be fine.

Benefits of Investing in Renewable Energy

#1: It’s profitable — You can actually make a lot of money from your investments in renewable energy projects. Some of the returns from such projects are simply mind boggling, especially when you consider that the interest rates on savings accounts in the West is about 1.6%. You can easily earn anything from 6% to 9% from your investment in a renewable energy project. Plus, many of such projects come with tax breaks included. So you will actually earn a much bigger slice of the profits than you thought.

#2: The returns are consistent — The returns from an investment in wind, sun and other renewable are stable over an extended period of time. While the returns might fluctuate slightly over a season, that is priced into the projected returns that you get from them. Also, with the price of electricity set to rise in the near future, you can expect to get a decent return on your investment for years to come.

#3: The technology is pretty reliable — When renewable energy technologies such as the solar panels and turbines are still pretty new, they are very consistent and can be relied upon. Indeed, some of the most conservative investors in the world such as managers of pension funds, put their money into them. Once a solar panel or a wind turbine is installed, you can expect them to last for a couple of decades easily.

#4: It’s your hedge against inflation — Investing in renewable projects is a great way of hedging yourself against inflation. Why? Rising energy prices are the single biggest cause of inflation. One of the effects of higher energy prices is that more people would look to get their electricity from renewable sources instead of fossil fuel. This creates a demand for the renewable projects you have invested in, so even as inflation rises elsewhere, you will make more money.

#5: Your energy bills will decrease over a period of time — There is a reason why renewables such as wind and sun are called as “alternative energy”. They are infinite, while fossil fuels such as oil, gas and coal are not. Investing in solar panels and wind turbines is your hedge against rising oil prices and higher utility bills. Invest now, and reap the benefits in the future, when oil and gas prices rise to stratospheric levels.

Final Thoughts

Hope you’ve enjoyed reading this. Our goal was to impress upon you the financial benefits of investing in renewable energy. A number of countries have chosen to take the plunge and have made substantial investments in renewable energy projects. Click here to learn about the top 7 renewable energy countries that have led the way for a better future for their citizens.

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