Alongside the global population, the energy demand across the planet has also been on a consistent rise. While non-renewable energy sources have been prevailing in the energy market for decades, the popularity of renewable sources of energy has significantly gone up in recent years.
In fact, many experienced industry professionals like Paul Favret are opting to invest in renewable energy now. After all, climate change and global warming are becoming major concerns for the work at the moment. The use of distinctive non-renewable energy sources like oil, gas, coal, and nuclear energy, are some of the prime causes of these environmental changes.
Paul Favret marks a few factors that make it a prudent idea to invest in renewable energy over non-renewable sources
Frequent use of non-renewable energy sources for varying energy services causes significant harm to the environment, and even human health, directly or indirectly. The production of energy from such sources ends up emitting heat-trapping gasses like carbon dioxide. They, in fact, cause the majority of greenhouse gas emissions on the planet. While it does take time to replace non-renewable energy sources with renewable ones, the latter is much better for the environment.
Renewable energy sources can be replaced with ease within a short of time as they come from natural sources. Common examples of renewable energy sources include geothermal, hydro, wind, and solar. Replacing non-renewable energy sources with them can help manage greenhouse gas emissions, and be vital in fighting climate change. The use of solar for energy services and electricity has particularly become popular these days. The prominence and accessibility of energy-efficient appliances, electric/solar vehicles, geothermal heat pump systems, and more, are on a rise in many parts of the world. People have already started to envision a green future, which makes it a good idea to invest in renewable energy over non-renewable sources. Paul Favret recently announced that his company, Abundant Investments, shall liquidate its oil and gas investments and move to more sustainable investments. He has plans to invest in solar, wind, and geothermal energy in particular.
In the last decade or so, many technological advancements have been made, which are now used in the production of energy services through renewable energy sources. Governments of several countries have also started investing in the renewable energy sector. Both of these factors have contributed to the increase in growth opportunities in this sector. Rooftop solar panels are already on a rise, as their cost has reduced considerably. They are on their way to becoming a major source of electricity in both commercial and residential buildings. A rise is also expected in on- and off-shore wind power plants for energy generation. While fossil fuels are still the primary energy source, renewable energy has undoubtedly become a huge part of the energy sector recently. This is good news for investors. Choosing to invest in the stocks of renewable-energy-based companies can pay handsome returns in the future. Investing in an ETF (exchange-traded fund) is among the simplest ways for investors to benefit from the green energy sector.