Renewable energy set to become 2020's most popular investment opportunity

Published:  03 January, 2020

A survey of investors has revealed that they regard renewable energy as the best possible investment in 2020. This investor confidence is good news for solar companies, as they look to massively increase output to meet ambitious green targets.

Renewable energy is the top investment sector for investors, a survey (1) by GraniteShares has revealed. Almost a third of respondents believe that renewables are the best sector to put their money into in 2020, reflecting a surge in growth and optimism about the industry in recent years.

The survey found that 36% of respondents with a specific ethical investment philosophy favored green energy, but areas like solar and wind are 2020’s most exciting investment opportunity for more than ethical reasons alone. 33% of investors who are simply looking to make serious financial gains are also choosing the sector, proving that investing in renewables transcends investment philosophy and is the smart and practical choice going forward into a changing world.

Sun Investment Group (SIG) is one of the first and largest solar energy investors in Poland, a country that up till now that was the biggest polluter in Europe. Even though Poland is currently still 80% reliant on coal for its energy needs, but it managed to almost quadruple its output of solar energy in 2019, largely thanks to progressive government policies like the introduction of Corporate Power Purchasing Agreements (CPPAs).

“Poland cannot simply turn away from coal immediately,” Rafał Rzeszotarski, SIG’s general manager, commented. “But with sensible government policies assisting progress towards renewable goals, the opportunities for the solar power industry in the country are very promising. That’s why we were one of the first pioneers to invest in Poland’s renewables, and we plan to keep expanding our portfolio to other European countries next year.”

The upwards trend in green energy isn’t exactly new - investments in solar power, for example, have been booming in recent years. New solar power installations increased by 36% in Europe alone in 2018, and some studies report that global output could grow by 6500% by 2050.

With costs falling and climate change concerns on the rise, well-established solar companies should see their revenue and earnings continue to grow in the long term. This is particularly true in countries that are traditionally reliant on fossil fuels and are looking to shift to cleaner sources of energy and diversify their energy infrastructure. Because SIG is already established in the Polish solar market, it is very well-placed to help the country continue diversifying its energy infrastructure.

“We feel that 2020 will be the best year in history for solar energy,” commented Rzeszotarski. “The climate change will drive more and more countries to give up drilling for fossil fuels and coal especially will soon be the thing of the past. New, clean and effective energy sources will be needed all over the world. Solar is definitely one of them.”

With solar providing attractive opportunities for both the ethically-minded and profit-driven investor, it is no surprise that the industry has become the top priority for investment in 2020. The added incentive of Europe’s “Green Deal,” a €1 trillion pledge to make Europe a net-zero emissions continent by 2050  can only ensure that this will remain the case for many years to come.

https://suninvestmentgroup.com 

(1) https://www.forbes.com/sites/davidrvetter/2019/12/12/as-britain-votes-investors-look-to-renewables-as-the-best-bet/#7e506c9a142f

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