Should I Invest in Green Energy? The Pros & Cons Discussed

The green energy trend is rapidly gaining momentum, with the International Energy Agency confirming that in 2013, renewables accounted for almost 22% of the world’s total electricity generation. This represents a 5% increase on the previous year’s figures, with further growth expected to follow. For savvy investors, this signifies a lucrative opportunity to secure a slice of the pie while the market is still relatively fresh. Interested? Read on for an overview of the pros and cons of green energy, and whether or not it’s worth the investment.

The pros

• The price of solar power and wind energy is falling

Green energy has a reputation for being more expensive than it actually is. The reality is that technological advancements have meant that creating green energy is now cheaper than ever. Bloomberg New Energy Finance's Jenny Chase maintains, "This stuff is really cheap."

• Global attitudes are changing

While in the past companies have relied on government incentives to convince home and business owners to invest in solar panels, global attitudes are starting to shift. The financial benefits of solar powered energy are starting to gain more attention, with many property owners investing in solar panels simply because it makes financial sense.

• Join the solar revolution

Solar power is the face of the future, plain and simple. By 2020 Bloomberg predicts that the planet will be powered by 600GW of photovoltaic solar, and 1,900GW by 2030.

The cons

• Uncertainty

Unfortunately the green energy revolution is being held back by uncertainty when it comes to governmental policies. Many advocates argue that the energy debate has become far too politically oriented, with leaders failing to develop stable policies and long-term goals.  Major issues include anti-green tax relief packages, fossil fuel subsidies and reactionary changes to renewable energy incentives.

• Oil prices are plummeting

Across the globe the price of oil is plummeting. For green energy companies, this makes it harder than ever to compete. Of course, green advocates remain optimistic and maintain that lower oil prices mean less incentive to run exploration projects. This will ultimately reduce the supply of oil and ensure green energy projects remain viable.

• There’s still progress to be made

The renewable energy industry has evolved in leaps and bounds however there is still a plethora of progress to be made. If the world is to make the transition to a sustainably powered planet there is still a significant amount of investment, development and innovation to be done.  

Managing landfill waste is one area that renewable energy will revolutionise. ‘Renewable Energy, Landfill Gas and EfW: Now, Next and Future’ discusses the UK’s commitments to the EU Renewable Energy Directive, and how renewable energy will help the nation develop alternative waste management options that will help it achieve its target of sourcing at least 15% of its energy from renewables by 2020.