- Renewable energy is more friendly to the environment compared to fossil fuels.
- Most green energy today is focused on wind and solar, however some companies are exploring hydrogen as a fuel source.
- There are many investment options for investors, from individual stocks to mutual funds and EFTs.
Green energy is a popular investment as more and more people realize the impact of increased carbon on the climate. But with so many renewable energy investments to choose from, this sector can quickly become overwhelming to investors. Here is a rundown of the industry and some investment options to consider.
Understanding Renewable Energy
Renewable energy involves power generation using methods that won’t deplete natural fuel reserves. Many companies in the energy industries are developing new ways to generate electricity that don’t adversely impact the environment through the collection of fuels and increased carbon emissions.
Burning fuels (such as natural gas, wood, coal, or oil) releases pollutants into the air that reduce the quality of life for the earth’s inhabitants. There have been major strides in anti-pollution technology over the past few decades, including fuel injection in cars for efficient fuel burning, scrubbers in smoke stacks reducing carbon emissions, and a reduction in reliance on coal as a fuel for energy generation. Despite this headway, it is challenging and expensive to reach a state of zero carbon emissions, hence the focus on renewable energy sources.
Types of Renewable Energy
Multiple types of renewable energy have been developed and are currently used for power generation at all consumption levels. The types most commonly in use include:
Solar energy generation consists of photovoltaic panels or mirrors that focus the sun’s energy into receivers that turn the energy into heat for power generation. The sun produces more energy daily than people consume, making it the most…
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