Clean energy, particularly investments in solar and wind, has been capturing the spotlight lately. Let’s look at the recent developments, challenges, and potential opportunities in this sector — and explore what assets you might consider adding to your watchlist.
Riding the clean energy wave
The rise of clean energy, driven by a global commitment to sustainability, initially felt like an unstoppable force. Renewable energy companies soared, fuelled by clean energy enthusiasm and government incentives.
However, sometimes the allure of a trend can mask underlying challenges.
Understanding the hurdles, spotting the opportunities
Several factors have contributed to recent obstacles faced by clean energy stocks. These include rising interest rates, prolonged cash flow expectations, inflation, increased production costs, and formidable competition from China.
Despite these challenges, the global shift towards renewable energy remains steadfast. Governments worldwide are championing green initiatives, opening up a vast market estimated at approximately $2 trillion for wind and solar energy.
5 renewables worth watching right now
SolarEdge Technologies (SEDG) is a leading player in the solar energy sector, specialising in innovative solutions for solar power optimisation and monitoring. With a strong focus on efficiency and performance, SolarEdge has garnered attention from investors seeking exposure to the growing solar energy market.
Your capital is at risk.
First Solar (FSLR) is a well-established name in the renewable energy industry, known for its advanced thin-film solar module technology. As a pioneer in solar energy, First Solar has a track record of delivering reliable and sustainable solar solutions, making it a noteworthy asset for investors interested in solar power.
Your capital is at risk.
Xinyi Solar Holdings (0968.HK) is a Hong Kong-based company that specialises in the production of high-quality solar glass products. As a key player in the solar supply chain, Xinyi provides critical components for solar panels, making it an essential asset in the renewable energy ecosystem.
Your capital is at risk.
Vestas Wind Systems (VWS.CO) is a prominent player in the wind energy sector, focusing on the development and manufacture of wind turbines. With a commitment to sustainability and energy efficiency, Vestas offers investors exposure to the growing global demand for wind energy solutions.
Your capital is at risk.
The Invesco Solar ETF (TAN) is an exchange-traded fund (ETF) that tracks the performance of companies in the solar energy industry. It provides diversification across various solar companies, offering investors a convenient way to gain exposure to the broader solar sector.
Your capital is at risk.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.