Invest in Green Energy [Best companies 2022]
Published: 10 January 2022 by Andrew
The global economy is slowly changing sources of energy, moving away from fossil fuels that emit greenhouse gases, towards cleaner alternatives. This is why starting to Invest in Green Energy is becoming a priority as well as a potential economic advantage.
This clean energy transition will take trillions of dollars and many decades to complete. However, it has the potential to make investors big money.
In this guide we will take a look at this fascinating world, selecting companies with high potential, in which it can be convenient to invest in 2021.
The sector is undoubtedly destined to grow, you just have to choose well where to invest. First, let’s try to answer a question that haunts investors:
How do you invest in green energy? You simply have to follow these steps:
- Choose a CFD Broker (like eToro)
- Register and select the CFD of the stock you are interested in
- Click Buy or Sell
That’s all? Well almost.
The choice of the Broker plays a fundamental role in investments, for this reason we have decided to show you a list of the best trading platforms on the market, if you choose among these intermediaries you cannot go wrong:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Is it worth to invest in green energy?
The growth of renewable energies is exponential, the International Energy Agency (IEA) estimates that they have reached 30% of global electricity generation capacity in 2020.
In a few years these clean sources will surpass the fossil ones and this goal is near.
Obviously, in support of this growth there is technology that continues to improve and the prices of systems that continue to decline. Photovoltaic panels cost less and less and the same thing concerns wind power, in short, a cleaner future awaits us, or at least this is what we all hope for.
The only obstacle to this process is funding, huge capital is needed to continue at this pace and companies that have solid balance sheets and growing profits obviously have an advantage.
Ultimately, it is worth investing in green energy as long as you select the most promising companies. We must not be fascinated by the more “green” ones in the strict sense of the term, but evaluate the companies that wisely allocate their capital to renewable energy projects that generate profits, better if in the long term.
How to invest in green energy?
Starting to invest in green energy is not complicated, you need to use an intermediary that allows you to trade securities, possibly without paying commissions.
The lack of commissions is an advantage especially if you want to make frequent trades and if you don’t have large capital.
The simplest, cheapest and safest solution is to use CFD Brokers, which offer derivatives called Contracts for Difference, with the same price as the stock listed on the stock exchange, and the possibility of aiming upwards or downwards (selling short).
The main advantage of these brokers is precisely the lack of commissions, while the safety factor is guaranteed by the authorizations that these brokers possess, which confirm their absolute reliability.
The brokers we have listed in the introduction all have a regular CONSOB or CySEC license, but if you want to know which ones are the most suitable to invest in green energy, we have selected 3: eToro, Trade.com and ForexTB.
Below you can read brief descriptions on the characteristics of these brokers.
How to invest in green energy with eToro
The choice to offer eToro is obligatory, it is the most used online broker in the world and this will mean something. Its over 10 million subscribers represent the largest community of traders ever.
eToro has obtained numerous licenses and this makes it a reliable and safe Broker. Its trading platform is considered the most intuitive on the market, with a wide range of renewable shares.
How do you invest in green energy with eToro? Just follow these steps:
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 200)
- Select the CFD of the renewable shares you prefer and click on “Buy”
- Decide whether to buy or sell the shares and how much to bet in the operation
If you don’t like manual trading and prefer automatic investments, eToro allows you to copy the operations of the best traders in the world, automatically and for free.
This system is called Copy Trading and to use it you just have to choose which traders to copy on the eToro platform, the rest will be done by all Copy Trading.
Here are some traders that you could copy on eToro:
Invest in green energy with Trade.com
Trade.com is an intermediary that stands out from the crowd, especially for the low cost of entering the market. With this Broker you will only need 100 euros to open a trading account and a few euros to trade on every single security.
To guide traders in the world of investments, Trade.com has created a Trading Course in ebook format.
This pdf explains how online trading works and how to use trading platforms and indicators, it is also free, download it from the link below:Download the Trading Course for free by clicking here
The reliability of this Broker is confirmed by CONSOB, which has provided it with a regular license.
How do you invest in renewable energy with Trade.com? You will have to follow these directions:
- Register for free on Trade.com
- Log into your Demo or Real account (by depositing a minimum of € 100)
- Select the CFD of the renewable shares you prefer and click on “Buy” to buy or “Sell” to sell short
- Decide how much to invest in the operation.
Invest in green energy with ForexTB
ForexTB is a very interesting Broker, with a truly innovative proposal, starting from the possibility it offers to choose between two trading platforms, different and free:
- The Web Platform is simple, intuitive, fast and accessible from any device, without installing anything.
- Metatrader, on the other hand, is much more professional, complete and full of indicators of all kinds.
How do you invest in green energy with ForexTB? It’s easy, just follow these steps:
- Register on ForexTB
- Choose the trading platform
- Select the green energy shares CFD you prefer and click on Buy (or on Sell to sell short)
- Decide the amount to invest.
This Broker has staked everything on the training of its users and to improve it offers a very high level Trading Course, which has quickly become the most downloaded basic course in the sector.
It is a pdf that lays the foundations for technical analysis that will allow you to immediately obtain results with trading, in a gradual and constant way. Download it from the link below, it’s free!Click here and download the Trading Course for free
Invest in Green Energy: The Best Companies
Now we will list the most important companies that deal with renewables energies in the world, companies on which it is worthwhile to focus in the future or at least should be kept an eye on.
In addition to the best companies in the sector, you can invest in green energy also by focusing on companies that revolve around the sector, such as Enphase Energy which manufactures microinverters for photovoltaic systems, Orion Energy which produces low-consumption lighting systems, or NextEra Energy, a US electricity company that has become a reference point for the renewable sector.
Below are the best companies that are part of the renewables sector, in order of market capitalization:
- Revenue: 34.23 billion dollars
- Net profit: $ 3.57 billion
- Market cap: $ 82.89 billion
- Final 1-Year Total Return: 47.12%
Iberdrola (IBDRY) is a multinational electrical utility company headquartered in Spain. The company deals with the generation, distribution and trading of electricity.
He specializes in clean energy, including wind, mini-hydro, solar thermal, photovoltaic and biomass. Iberdrola operates in the United States, United Kingdom, Spain, Portugal and Latin America.
- Revenue: $ 34.97 billion
- Net profit: $ 15.46 billion
- Market capitalization: $ 71.2 billion
- Final 1-Year Total Return: 85.62%
Orsted (DNNGY) is a Denmark-based multinational power company focused on providing renewable energy solutions.
The company’s wind energy segment develops, builds and operates offshore wind farms. Its segment oriented towards bioenergy and thermal energy manages power and combined plants.
Orsted also distributes and sells electricity and gas in wholesale and retail markets in Denmark, Sweden, Germany and the UK.
- Revenue: $ 15.2 billion
- Net profit: $ 490 million
- Market cap: $ 38.86 billion
- Final total return in 1 year: 104.48%
Vestas Wind Systems (VWDRY) is a wind energy company based in Denmark.
Develop, manufacture and install wind turbines. The company also operates a service segment that provides service contracts, spare parts and related activities.
The company has installed wind turbines in dozens of countries around the world.
- Revenue: $ 9.48 billion
- Net profit: – $ 920 million
- Market cap: $ 23.24 billion
- Final total return in 1 year: 112.63%
Siemens Gamesa (GCTAY) is a wind engineering company based in Spain.
It sells onshore and offshore wind turbines, turbine gearboxes, off-grid and other related equipment. It also provides maintenance and reconditioning services.
The company serves customers around the world and has installed products and technology in over 90 countries.
Brookfield Renewable Partners
- Revenue: $ 3.58 billion
- Net profit: N / A
- Market capitalization: $ 10.83 billion
- Final 1-Year Total Return: 59.73%
Brookfield Renewable (BEP) is a Canadian-based company that owns and operates renewable energy assets.
The company owns a portfolio of renewable energy generation plants around the world. It focuses mainly on hydroelectric energy, but also owns and operates wind, solar, distributed generation and storage plants.
- Revenue: $ 3.5 billion
- Net profit: $ 220 million
- Market capitalization: $ 9.46 billion
- Final 1-Year Total Return: 62.91%
First Solar (FSLR) is a solar energy company. Designs and manufactures photovoltaic solar systems and solar modules.
The company uses thin-film semiconductor technology to produce solar modules that convert sunlight into electricity. First Solar serves customers globally.
- Revenue: $ 1.39 billion
- Net profit: $ 70 million
- Market cap: $ 3.56 billion
- Final 1-Year Total Return: 218.66%
SunPower (SPWR) is a solar energy company. Designs and manufactures solar panels and systems. The company provides solar energy solutions, including engineering, procurement and construction of turnkey plants.
It also supplies equipment to resellers, commercial and residential end customers around the world.
- Revenue: $ 3.36 billion
- Net profit: $ 210 million
- Market cap: $ 2.39 billion
- Final total return in 1 year: 132.66%
Canadian Solar (CSIQ) is a Canadian-based solar energy company. It designs and manufactures photovoltaic solar modules and provides energy solutions.
The company also manages solar energy projects and offers management and maintenance services. Canadian Solar serves customers in more than 160 countries.
Renewable Energy Group
- Revenue: $ 2.61 billion
- Net profit: $ 610 million
- Market cap: $ 2.33 billion
- Final 1-Year Total Return: 214.63%
Renewable Energy Group (REGI) is a biodiesel manufacturing company. It produces and markets biofuels and renewable chemicals.
The company transforms waste and virgin vegetable oils, animal fats, other raw materials and methanol into biomass-based diesel.
It also offers services for the management of the construction of biomass diesel production plants.
- Revenue: $ 33.95 billion
- Net profit: $ 163.1 million
- Market capitalization: $ 1.33 billion
- Final 1-Year Total Return: 223.33%
JinkoSolar (JKS) is a solar energy company based in China.
It makes products that run on solar energy, including silicon ingots and wafers, solar cells and solar modules. The company also provides solar system integration services.
Jinko sells its products to customers in the United States, Europe, Asia, Africa and Latin America.
In this guide we have examined the main companies that deal with renewable energies, they are all companies with very high potential and must be followed carefully.
Investing in renewable energy means following progress, keeping up with the times. It is not only a profitable choice but also an obligatory one, this trend has been underway for some time and it is not possible to go back (fortunately).
To analyze the performance of the stocks we have proposed and evaluate some investments, you will find links to access the Demo accounts offered by the CFD Brokers we have reviewed.
Starting with the Demo accounts means eliminating the risk factor and practicing with trading platforms. At any time you can switch to real investments, just make a small deposit into the account of the Broker chosen from:
- Access the eToro Demo account for free by clicking here
- Register on Trade.com and try the Demo account by clicking here
- Log in to ForexTB and try the Demo account by clicking here
Yes, the sector is growing strongly and it is an unstoppable trend.
You have to choose companies with solid fundamentals, in the guide we have listed the most important ones.
The forecasts are up but not all green companies are investment opportunities.
With CFD brokers like eToro, which offer a wide choice of green securities and do not charge commissions.