One of the ways you can invest in solar energy is to consider green energy stocks for companies involved with solar energy. Use the suggestions below to help determine whether your commitment to green energy should include green energy stocks.
Do your due diligence but stay aware that you can always lose all your money when you invest in stocks. Even the United States government, with all its resources, bet wrong when it came to Solyndra, a $535 million loss on the solar panel industry.
Consider the novelty of the product, understanding that in its early days there will likely be kinks that need to be worked out as the product gets into the marketplace. In the Solyndra instance, the company designed new panels that were supposed to maximize power generated but the technology did not work as anticipated.
Consider government incentives to consumers and government subsidies to solar energy companies. As in the case of many industries that receive government money, that money frequently boosts a stock price because the government is committed to the industry in terms of money and policy to make it easier for the industry to succeed. Government rebates to consumers further motivate them to purchase solar products.
If your home is not powered by solar energy, consider why and determine whether these are valid reasons. For instance, one of the largest barriers to installation of solar energy panels is typically cost, even after rebates offered by government. This is a valid reason not to invest in a solar energy company, because like you, many customers might not install the panels because of costs.
Consider the competition for the company you choose and look at how the stock for that company is doing in the marketplace. Much advice revolves going to the biggest and the best company which has a higher stock price than smaller or newer competitors. These more expensive, more established stocks are usually more likely to survive market fluctuations.
Look at a company’s track record. Before you invest in a solar energy company, you’ll want to be sure they’re going to stay in business. There are extensive lists of solar energy companies that go bankrupt.
Consider how well the product works for consumers and what new technologies are being designed to address consumer concerns. In the case of solar, consumers like the idea but seem to have complaints beyond the cost, such as additional power alternatives required to pick up the slack for times when the energy provided by solar isn’t enough and maintenance of panels. In terms of investing in these companies, you might want to consider customer complaints about the solar panels in addition to trying to read your way through balance sheets.
There are green energy mutual funds that you can invest in which will spread your investment dollars across different companies. Do your research about the fees associated with such mutual funds in addition to their performance.
Investing in green energy stocks such as those for solar energy companies can be a good way of showing your commitment to green energy technologies. Use the considerations above before deciding to invest in green energy stocks.
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