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How to Invest in Solar Energy

Renewable sources of energy have been all the rage, especially after the unprecedented peak in global warming levels in the past decade. Of the ten warmest years since the mid-70s, eight of them are within the last decade. 

Solar energy is one of the most practical and most popular renewable energy sources in the country. With a market worth of a whopping $18.7 billion as of 2019, it’s also a goldmine for many entrepreneurs.

If you’re wondering how to invest in solar energy, then all the answers you need are in this post. Read on, and we’ll give you some insight into the best ways to invest in solar energy. 

What Do You Mean by Investing in Solar Energy?

The solar market is a very expansive market with multiple facets and a broad supply chain. Solar investing is putting your money into any facet of the solar supply chain as an investment. 

This could mean anything from investing in a solar company’s stocks to manufacturing your own solar panels. While the latter isn’t very feasible, investing in solar companies like First Solar and even TESLA is a great place to start.

Alternatively, you can be a solar panel distributor or redistributor and earn some good retail money. If you’re itching to get into the solar business, here are a few ways to invest in solar energy.

How to Make Money From Solar Energy

The best time to invest in solar energy is now when the entire world is becoming more environmentally-conscious. You can be a part of this green movement and actually make money from it. 

Here are a couple of ways to invest in solar energy.

1. Buy Stocks in Solar Companies

Buying solar company stocks is one of the easiest ways of investing in the solar business. It’s a very wise move, especially with the world gradually shifting from fossil fuels to renewable sources of energy.

Considering that governments in most developed countries have resolved to go green in the next decade or so, solar companies are set to flourish. As such, you can never go wrong with buying stocks in a good solar company.

Alternatively, you could put your money in a couple of solar companies to spread your risk, and, by extension, your potential reward. Also, before you go spending all your money on stocks, make sure you understand the ins and outs of the market.

The demand for solar energy is likely to surge in the coming years. In fact, in the future, don’t be surprised if these solar firms phase out all the oil giants we depend on today. Buying stocks in a solar company is a good idea, but make sure you do your homework on the company before doing so.

2. Mutual Funds

If the math and technicalities of the stock market give you a hard time, then you should consider a renewable mutual fund. For a mutual fund, you first need to hire a financial advisor who scouts for the best opportunities for you to invest in.

You’ll team up with other investors and pool your money for investment purposes. The financial advisor then spreads the money over a number of promising solar investments. 

This advisor aims to get the most returns from a few energy investments. These investments include, but are not limited to, solar energy stocks, government funds, and solar energy bonds. 

The knowledge and experience of your financial advisor are invaluable in identifying the most propitious solar energy investment opportunity. You, however, have to pay the advisor a steep fee, but it will all be worth it in the end.

3. Mini-bonds in Solar Companies

Energy companies have mini-bonds known as mini energy bonds to finance their renewable energy wings. Since you’re keen on investing in solar energy, you wouldn’t want to invest in the entire company, but only its solar energy division. 

Most of the major energy companies have these “mini energy bonds” to bolster the growth of their renewable energy division. You can purchase these mini-bonds, and get a share of their profits from that specific division.

4. Buy Yourself Some Solar Panels

Buying some solar panels is the easiest and arguably the best way to invest in solar panels. First, you’ll be putting your money in the solar companies to spur their future growth. Secondly, you’ll be making a money-saving investment.

While you have to pay a hefty initial cost for the solar panels and installation, you’ll save a bundle every month in energy costs. 

Advantages of Investing in Solar Energy

You have lots to gain when you invest in the solar business. Here are a few advantages of investing in solar energy.

It’s renewable – Solar energy is inexhaustible and will only end when the sun dies off. So you have at least a billion years’ worth of energy to make money from.

Sunny climate – Most of America receives sunlight all year round, save for a few months. This means you’ll get the most out of your solar energy investments and installations.

Energy independence – With solar energy, you no longer have to depend on electricity or fossil fuels for your daily energy needs.

Environmentally-friendly – You’ll be doing the environment a huge favor when you invest in solar energy. Solar energy has a significantly lower environmental impact as compared to fossil fuels and other non-renewable energy sources.

Implement These Tips on How to Invest in Solar Energy and Make Money

Hopefully, you now know how to invest in solar energy and the benefits of doing so. The easiest way to invest in solar energy is by buying stocks and mini-bonds. However, if you can’t keep up with the figures and terms of stock markets, you can consider a renewable mutual fund.

Before you consider those investments, make sure you have your own solar installation at home. You don’t want to be the person who preaches water and drinks wines. Plus, buying your own solar panels is also a form of investing in solar energy.

Are you looking for different ways of making money through sound investments? Our business articles have numerous tips on how to identify the best opportunities. Check them out today.