As a stockholder, energy is always a great stock to invest in as we never run out of uses for it. Natural gas and other fossil fuels still remain some of the top sources of energy globally, however with the rise in global energy demand, new renewable energy has started to grow. In 2018 a new solar energy project launched every 100 seconds, which bodes well for solar energy stock prices if it continues to grow. However, there is a lot to consider when choosing solar stocks, and that’s what we’d like to discuss with you today.
Solar Energy Stocks; It Adds Up
With renewable energy a big talking point nowadays due to climate change, we’re starting to see a subtle pull towards solar power. Major corporations, such as mining are starting to implement more renewable energy products to help be more environmentally friendly. And although, it is still a newer form of energy that comes with costs to implement all the solar products needed, over time the price and the utility-scale begin to add up.
The same can be said for investing. Although energy never sees a big upswing in demand, it slowly grows in need over time. As a project or city grows in size, they need energy companies to supply that demand. Not only that they need to be maintained. This constant growth and upkeep means continuous cash flow.
Government Incentives
Over the last few years, we’ve seen extreme changes in governmental ties to solar technologies. In 2018, Donald Trump’s administration imposed a 25% tariff on imported solar modules to the US. This made people a little uneasy as they were afraid of what the long term effects would be for their solar energy industry stocks. Not long after, China cut its incentives provided to patrons of solar companies. 2018 was not a good year for solar energy stocks. However, this cause a slower increase in solar industry stocks, however, it was still increasing.
Government incentives help drive solar energy to be more lucrative for both commercial and residential solar owners. The better the laws are in an area a solar company is located, the more likely to see growth.
Know Your Solar Stocks To Buy
Solar-cell and panel makers
The makers of solar panels are the top of the list when it comes to affecting long-term growth. They rely on keeping operation and factory prices low and the industry keeping their product in demand. When incentives go down or the economy isn’t faring well, sometimes these investments can go a bit lower. However, with the continual push towards market share with fossil fuels, it’s unlikely solar panel makers will ever completely crash and burn.
Solar component and accessory makers
In order to install solar panels properly and provide needed energy storage for long term energy use and solar net metering, solar products and accessories are needed. Because the undertaking for creating solar panels is so large, very few companies make a custom or specialized items for installing them into different roofs, or storage that fits into a smaller home.
Solar installers
Installing solar is another important part of the solar energy use process. Last year the total number of solar panel installs in the US hit 2 million and it’s expected to double in only 4 years. That’s a lot of installation! Not only that, most companies that do installs also do maintenance and upgrades, meaning the jobs are continually needed. The needs for capacity is expected to double in the next five years, which means more upgrades.
Yieldcos
Named because of the high dividends it yields, Yieldcos are companies that use renewable energy products to create energy. They usually create these large quantities to sell back to utility or asset management companies. These companies tend to buy solar energy products in bulk so that they can create energy and sell over time.
Who Should Buy Solar Energy Stocks
Investors looking for long term growth opportunities are prime for solar energy stocks, however, they aren’t the only investors with favorable circumstances. Income investors looking for long-term growth to strengthen the base of their returns can also use solar energy. There are plenty of companies in the solar industry that raise their value every quarter, even if it’s only slightly.
Just remember there is no such thing as a loss proof investments. Outside factors, such as government restrictions, can greatly cut down the profits if you’re a short term investor.
Invest in Your Investments
If you’ve decided to supply money to a solar energy stock, the best way to support your investment is to support solar industries. What better way to do that in Nevada than with Sol-Up! At Sol-Up we are connected to the best solar panels on the market, Panasonic Solar, to provide you with long-lasting solar panels and great upkeep and maintenance services. Support your investments, with Sol-Up!
