Is renewable energy a good investment

1. Is renewable energy a good investment? Amidst traditional energy sources hitting their fag end, renewable energy space seems to be stepping in and making the best of the available opportunity. Economies around the world are consciously factoring in that fossil reserves may soon run out. This is why the renewable energy theme is receiving a lot of traction. Economies are pumping tons of subsidies into the renewable energy space with the aim of offsetting their energy needs from fossils. Even though there’s been enough talk about renewable energy in the last couple of decades, investments in the renewable energy theme have lacked luster. High costs of production in the case of renewable energy could be attributed as the biggest reason for this. However, a positive attitude from the governments towards their zero-emissions policies, big players entering the renewable energy space, improving technology, and readily available financing have brought a notable turnaround. India, too, is taking some giant leaps in developing viable, clean energy resources. Between 2014 and 2021, the renewable energy capacity has increased 2.5-fold in India. In the Union Budget 2022-23, the government showed aggressive intent to manufacture solar modules. In line, the government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to implement the same.

2. Considering the resilient growth of the renewable energy sector in 2021 and the fact that there’s an ever-increasing demand for switching to clean and green resources, the renewable energy sector may be poised for unprecedented growth in the years to come. As investors, you would not want to miss out on the early-mover advantage. While the renewable sector has amassed a fair share of attention from market participants, retail participation is still nascent compared with other established sectors. Before investing, it is essential to analyse how a particular share is performing and its growth potential. To learn more about this, read our A-Z Guide On Analyzing Stock Fundamentals on the Teji Mandi blog. However, it is safe to say that investing in renewable energy can be a great move. Let us analyse why. Read More About Renewable Energy