Exploring Alternative Investments and Renewable Energy Investment
Are alternative investments a good place to invest your money? One does wonder where to invest in this volatile economic environment? This question is tricky since eco-investing returns are inversely proportional to the price of oil. However, one can make informed decisions about this topic. Due to the unpredictability in the oil prices a lot of people have looking into alternative energy investment. Here are some things that go in favor of this investment opportunity: 1) The world is seriously looking at exploring renewable energy options due to global energy disasters such as the Fukushima Daichi episode in Japan. Many countries are planning to phase out their nuclear plants completely (e.g., Germany) and replace the energy supply with alternative energy sources.
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2) Green energy industry is up and coming and for the longest time and didn’t have consistent and ongoing support from the government or public energy sectors in terms of subsidies and/or grant. However, many governments (China, Japan, Canada, U.K., Australia, India, and the Middle East) have not only increased their financial supports for various energy projects but also provide supportive environment for the development of this energy sector. It creates a conducive environment for renewable energy investing not only in the United States but many parts of the world.
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3) Many governments have now established clear alternative energy production goals. As an example, the European Union plans to contribute 20% to the total energy supply using renewable energy sources, which means that the additional money will be put into the development of alternative energy technologies as well as projects. Similarly, China is planning to increase solar power capacity to 50 GW by 2020 from 305 MW capacity at the end of 2009.
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4) Another aspect that helps the growth of alternative energy renewable energy sector is the passing of new legislation. In the United States, the federal government has extended the
30% federal investment tax credit (FITC)
to both residential and commercial solar installations until Dec 31, 2016 thereby creating opportunities for alternative investments. Solar and wind energy has had a lot of success among all the renewable energy sources. Therefore, these industry are worth looking into for future investments.
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Another way to look at alternative investments is to invest in "greening" your house. This could mean anything from doing/getting an
energy audit
at your place and/or installing renewable energy technologies such as solar panels or micro turbines to supplement your energy needs to
living off grid
and replacing most of your energy needs with alternative energy sources.
In any case, if you are interested in traditional investing then do look into these alternative energy companies that are listed on the NASDAQ: Amer Elec Pwr (Aep) Constellatn Egy (Ceg) Duke Energy Cp (Duk) Empire District (Ede) Ja Solar Holdgs (Jaso) Otter Tail Corp (Ottr) Ameren Corp (Aee) Alliant Engy Cp (Lnt) Investment advisors are suggesting that people buy alternative investments despite the uncertainties in the market such as the possibility of overflow of solar panels and too many companies competing in the renewable energy sector as these investments will provide good returns in future.
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