Investing in solar energy is a wise choice today, and more and more people are following this trend.
Of course, no investment is without risk, but especially when you consider the exponential growth and success of the industry, alternative energy is one of the most promising sectors for savvy investors. Whether your interest lies in finding the next big thing in the stock market or something a little closer to home, read on to learn more.
Why Investing in Solar Stock Makes Sense
Analysts consider many solar stocks to be undervalued, and the low prices are enough to lure many into investing. But adding solar stock to your portfolio makes sense for several other reasons as well.
For one, residential panel systems are becoming cheaper, and as prices fall, demand rises among consumers. Also, the sun’s energy is being increasingly used to provide power for the billions of people across the world who have no access to grid energy.
Another reason to invest is the rapid progression of technological advancements in panel efficiency, as this generates growing interest in installing systems. Big companies such as GE and Google are investing in solar already, and the market is projected to continue expanding. Getting in now while the prices are lower could earn you a hefty investment return.
Selecting Investment Stocks
While you could choose to invest by purchasing stock in energy utility companies that sell solar energy, this can be problematic, as it involves dealing with specific regulations. Instead, most analysts suggest that people buy stock in panel manufacturers.
Choosing stocks will require a careful look at the companies to determine the risk, as is the case with any financial investment. A market expert or broker can offer advice and recommendations, of course, and help you manage your portfolio. If you’re more of a DIY investor, you can find tons of information and company prospectus data online.
Stock Pricing Factors
With today’s increasing demand for alternative energy, solar is an attractive investment. Novice investors may be curious as well about wind, hydroelectric, geothermal and other forms of renewable energy, but experts warn that these industries may not be as lucrative.
Using the sun’s energy for power is more efficient and cost-effective than ever, making solar power the fastest-growing renewable resource. And, as technological innovations continue to lower the cost of PV panels, the price for stock shares is expected to be affected accordingly. As the industry evolves, many analysts believe investing now could lead to great returns.
If your investment interests are a little closer to home, purchasing a PV system for your home or business is also a great way to earn a positive return. With so many favorable financing options, tax incentives and rebates, your system can be paid off quickly, and this means you’ll be enjoying free power in no time. Even if your system is financed, you will enjoy significant cost reductions when compared to your current power company charges.
Contact Intermountain Wind and Solar today to learn more about investing in solar for your home or business.