The term renewable energy is widely used in the modern age, with this referring to energy derived from sources or processes that are continually replenished.
The most prominent examples of renewable energy include solar, wind and geothermal energy, with the demand for such sources rising continually amid projections that the vast majority of fossil fuels are now “unburnable” if we’re to successfully limit the threat posed by global warming.
At the same time, it’s thought that existing fossil fuel sources will be depleted by 2060 at the current rate of burning, so there’s no doubt that businesses and investors are increasingly in search of viable renewable energy options.
What are the Best Renewable Energy Stocks to Buy?
In addition to the above statistics, the International Energy Agency (IEA) has also predicted that renewable energy will grow to power 12.4% of the world’s total demand in 2023.
This is approximately one-fifth higher than the 10.3% recorded back in 2018, and this rate of growth is likely to be sustained in the near and medium-term.
But what are the best and most popular renewable energy investment options in 2021? One of the most obvious selections is Ørsted A/S, which is a global offshore wind behemoth that’s worth an estimated $453.80 billion. The Motley Fool’s latest recommendations are solar, hydrogen, and energy storage stocks. The energy sector has been a bright spot in the market this year, with some stocks up double digits over the S&P 500.
The world’s largest offshore wind power developer is responsible for 29% of global installed capacity, while Ørsted also reported stable results in the third quarter of 2020 despite facing a raft of global challenges.
Overall, shares in the company have appreciated in value by 37% since the beginning of 2020, making it a relatively stable investment option in a burgeoning marketplace.
Tesla is another high-flying energy stock, despite a recent price decline that followed the brand’s $1.5 billion investment in Bitcoin (which endured something of a price wobble at the beginning of March).
Despite this, Tesla continues to lead the race on sustainability, with its game-changing technologies revolutionising the automotive industry and helping the brand to branch out beyond electric cars and into energy storage solutions.
To this end, Tesla’s share price has rocketed from $89.01 to a staggering $693.73 in the year ending March 2021, while the company now boasts a total market value of $388.98 billion.
How to Invest in Renewable Energy Stocks and Assets?
Ormat Technologies is another viable investment option for 2021, with this company serving as a unique geothermal business that currently transforms excess heat into power.
This $3.96 billion company offers considerable value at present, as despite a recent share price drop, its stock value peaked at $126.02 on February 10th. This is also an eminently more affordable stock option for investors, and one that could be poised for significant growth in the medium and longer-term.
The question that remains, of course, is how should you invest in renewable energy stocks? Well, aside from targeting single stocks directly, you could also trade broader indices such as Nasdaq and the S&P 500.
These premium indices contain a large and growing number of renewable energy and clean energy stocks, while they can also be traded via so-called “contracts for difference” (CFDs).
This type of investment vehicle enables you to trade renewable energy stocks without assuming ownership of the underlying assets, while also instantly diversifying your portfolio and investment interests.