Healthy Planet, Healthy Portfolio — Top Clean Energy Investments for 2023
Key takeaways
- Solar power is set to beat oil production this year for the first time ever
- The IEA predicts clean energy will meet a third of the world’s energy needs in the next 10 years
- Some investment strategies including US solar power, ETFs and indirect upside through raw materials
The clean energy industry has slowly gained momentum as the climate emergency has grown more urgent. As a result, once-nascent industries are turning into powerhouses and new tech is emerging for investors to add to their portfolios. We’ve got the lowdown below on why clean energy might be right for you and how to get into it.
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Why invest in clean energy stocks?
The International Energy Association (IEA)’s latest report found that solar power is set to beat out oil production for the first time ever, with global investment set to hit $1.7 trillion in 2023.
Governments across the globe have committed to carbon net zero targets, while the IEA also predicts renewable energy capacity will meet over a third (35%) of the world’s global power needs by 2025.
Not to mention, EV production has grown significantly in recent years and is demanding more grid capacity and charging station networks to meet demand. All of this adds up to a lot of scope in the clean energy industry over the next decade.
How to invest in clean energy
In the US, solar power is set to balloon with the Energy Information Administration (EIA) forecasting the tech to encompass half of new capacity in the US in 2023 alone. Solar suppliers Enphase Energy and SolarEdge Technologies, plus engineering firm Aecom are some more prominent players in the sector — though all have either dipped in value or stayed flat in 2023.
Cleantech exchange-traded funds (ETFs) are another way to access a pool of stocks and companies to diversify your portfolio will still doing good for the planet. The iShares Global Clean Energy ETF and the Invesco Solar ETF are more prominent examples of US funds, though neither has made gains in 2023.
And a way to catch indirect exposure to clean energy is through investing in raw materials needed for manufacturing the tech, such as lithium, copper and hydrogen. Mutual funds, ETFs or investing directly in mining and production companies can be an excellent way to generate returns in clean energy — but be sure to do your homework on individual stocks beforehand.
The bottom line
The clean energy industry is picking up pace. While the stocks are down this year as supply chains and the general economic malaise dog the sector, once resolved, the industry is set to skyrocket. Investors looking to add some greener stocks to their portfolio should research the market — or let AI investing handle the grunt work.
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