What's The Best Way To Invest In Solar Energy?

1. Solar energy is one of the most reliable forms of renewable energy.
2. The technology has been used in many forms for decades.
3. It harnesses the infinite power of the sun to generate electricity that can be used in various applications.
4. Solar power is used in a wide range of applications.
5. From domestic purposes to industrial energy needs, solar power has been tapped to provide renewable, sustainable power that is reliable.
6. Apart from providing electricity, solar power has been harnessed for other uses as well.
7. These include cooking, distillation, water heating, and pumping.
8. The technology used for these processes vary, but the basic concept of using the sun’s energy remains the same.
9. Many governments and local authorities have begun to actively foster and encourage the use of solar energy.
10. This has resulted in a plethora of solar energy companies to mushroom all over the world.
11. As fossil fuels continue to deplete, the need for reliable and renewable energy is the need of the hour.
12. This uptick in the use of solar power makes for a lucrative investment proposition.
13. There are several other reasons why solar energy is the next hot-ticket investment opportunity.

Why should you invest in solar energy?

Solar power is being widely implemented across the globe. As the technology continues to evolve, the applications and use of the energy source becomes wider in scope. Various projects across several categories are now seeing the use of solar energy to power them.

1. Instability Of Fossil Fuels

Not only is the raw material necessary for the production of fossil fuels continuing to deplete severely, but the political environment in the region producing these fuels is also highly volatile. This means that any external factor can influence the scale of production and access to fuels. Currently, India sources much of its fuel from Iran, which is facing a period of great political uncertainty.

The rest of the fossil fuel producing regions are no better. Venezuela, the Middle East, Russia, and China have strong political aspirations which allow them to hold their resources, hostage, to broker advantageous deals. The US is the highest producer of fossil fuels and their recent inward-looking, America-first stand gives them even higher bargaining power.

Solar power allows countries all over the world to become energy independent. They do not have to rely on the goodwill generated with other countries to meet the demands of energy. It can help even the playing field which has been skewed due to the hegemony of fuel by some countries.

2. Drive towards green energy

The Paris Accord and many other international treaties, MoUs, and deals have put the issue of global warming front and center on the world’s consciousness. Global warming and its effects cannot be challenged without arresting climate change. This can only be done by replacing traditional forms of energy sources with green energy.

Several countries have pledged to reduce their carbon emissions by shifting a large portion of energy generation to green sources. This includes investing heavily in solar power and building the required infrastructure for the same.

3. Existing and proven technology

Solar power is not a new concept even if the technology has gone through leaps and bounds in terms of innovation. A large portion of the public is already aware of the benefits of using solar power and thus are more likely to embrace the same on a larger scale. In India, it is not unusual to see most homes utilizing some form of solar energy either for generating electricity or for heating water.

The advancements in technology have also addressed previously serious disadvantages of solar power. You can now generate solar power anywhere just from sunlight rather than relying on the heat generated from the sun. Significant improvements in batteries have allowed for the storage of energy derived from solar power. This allows for the use of electricity during the night as well.

How should I invest in solar energy?

There are several avenues available to you if you want to invest in solar energy. Here we will discuss these various options and their individual advantages.

1. Solar company stocks

You can invest in government solar energy companies like Solar Energy Corporation of India by buying their stocks. The GoI along with the Ministry of New and Renewable Energy has set an ambitious goal of generating 100 GW of solar energy by 2022. This requires large investments that will be partially met through public stocks.

2. Energy Bonds

Several traditional energy companies are now making the leap into solar energy. If you do not want to invest in the entire company but want to help fund the solar division, these companies offer what is known as mini energy bonds. These bonds procure investments for their solar division and you can reap the rewards of the said division. These companies have the required infrastructure and capability of diving into solar power and they also have enough experience to avoid the usual pitfalls of energy generation. Do check the company’s plans for their solar division and the extent to which they intend to expand their solar output.

3. Mutual Funds

A great way for investing in solar energy if you aren’t sure of the industry’s landscape is to invest in a mutual fund that deals exclusively in renewable energy. These funds are run by investment experts who pool in the resources of various investors to build a diversified investment portfolio. The expert’s job is to have their ear to the ground and identify the best companies and stocks to invest in. There are several mutual funds that exclusively deal with renewable sources of energy, which can be an added bonus for your investment needs. Any market offering must be researched thoroughly before you decide to invest in one.

4. Solar Panels

The best investment in solar power is to buy your own solar panels to power your own home or business. While the initial investment can be high, there are many government subsidies and tax breaks offered to help ease the burden. The panels will help reduce your power bills and the excess energy generated can be sold off to the local energy grid. The panels produced today are extremely durable with a life of over 20 years. So, a single investment in solar power for your personal usage can result in long-term savings.

Conclusion

Solar power is here to stay and it only continues to expand in terms of scope and applications. This makes the energy source one of the best to invest in. As the world continues to move away from traditional coal and crude oil-based fuels, solar energy and other renewable sources of energy will become more prevalent.

When investing in solar energy, it is vital that you understand the various aspects of the investment. Government-backed projects are more reliable though they may provide lesser rewards for your investment.

As with any investment, it is advised that you conduct your own research and talk to multiple people with the know-how about the investment opportunities. Some of these options are suited for a long-term investment with low risk while others are designed to generate short-term gains with higher risks.

Also read:

1) 12 Reasons Why You Should Switch to Solar Energy in India
2) How is the future of solar energy in India?
3) How to Start a Solar Energy Retail Business? All about solar energy retailer ship
4) Why Some Businesses Still Refrain From Using Solar Panels?