Green Stocks
Recent years have seen a marked growth in green stock investment with investors looking to diversify their portfolios particularly in high profile projects in the field of photovoltaic PV and wind turbine installation. A number of high profile investment groups have tipped green stocks to boom in the post financial crisis climate with investors understanding that natural gas, coal and petro-chemical stocks will prove to be unsustainable within the next 20 years.
Investment opportunities are currently presenting themselves across a broad range of niche sectors. Investors in solar stocks for example are currently able to choose between research & development, manufacturing e.g. silicon panel production, installation or simply in a number of third party companies which offer comprehensive, turn-key solutions.
The recent announcement of the feed-in tariff or Clean energy cash back system to come into effect in April 2010 will only contribute to the growing take up of green stocks in the UK as they have done abroad where strong feed-in tariff systems have been introduced with great success. Talking specifically about the situation in Germany where they are currently experiencing a boom in the field of green stocks following the introduction of their own tariff mechanism, Pascal Schuler, Fund manager of Green Invest Equity, a Swiss banking joint venture commented,
“Water, solar and wind energy are areas where we invest in the long-term, as there is an over-average growth potential when financing kicks off again. Banks will prefer them when they start lending”.
Other commentators have suggested that it is impossible to ignore the simple fact that solar industries across the globe will be set to take off once investors have weathered the current crisis. Jim Mellon, well known as being a guru in the field of successful investing in the stock market went as far as asserting that solar will be ‘bigger than the internet’, suggesting that it is in green stocks where the smart money will be in the coming years.
