Renewable energy investments offer one of the few opportunities to be able to invest with your head and your heart. Here’s how…
CURRENTLY it still costs more to produce renewable energy than fossil fuel energy, which deters many investors. So, to encourage investment, governments are offering to pay a higher rate for renewable energy fed into the grid – what’s known as the Feed-In Tariff (FIT). Once on the grid, that energy is used by us all, alongside fossil fuel energy.
Meanwhile, the cost of generating renewable energy is coming down. The price of manufacturing solar panels, for example, has reduced by 50 per cent in the last 12 months and continues to drop.
So, it’s expected that, within five years there will be ‘grid parity’ – ie fossil fuels and renewables including solar will cost the same to produce.
By investing in renewable energy projects now – while the market is still developing – investors can both grow their capital and support an important industry which will save and improve the environment and ensure we can all produce power in the future. And FIT rates now, before grid parity, will be in place for 20 years. Investors are currently seeing returns from seven per cent to 17 per cent, depending on their level of investment.
According to Clean Edge research, the global market for solar photovoltaics has expanded from just 1.7 billion euros in 2000 to 49.5 billion euros in 2010.
Biofuels and wind power are following a similar trend. They project these three technologies will grow to 243.2 billion euros in the next decade.
Professional and corporate investors who can put up the large sums required for the high cost process of building these projects have been the main beneficiaries up to now.
But now schemes are being set up via institutional investors and venture capital funds where people from all walks of life, with as little as 6,000 euros to invest, can get involved and help redefine renewable energy investments worldwide.
To find out more, call Gary Oliver on 952 834 830 or visit www.irepenergy.com
