How to invest in solar? (2018)


#1

I wan to dedicate a large portfolio of my portfolio to Solar energy…

where are the opportunities in the sector…how can I invest?


#2

Firstly, capacity in the solar energy sector is absolutely booming. Global green energy capacity rose by 9% last year. Green energy is supported by subsidies but no more than fossil fuels are.

Source: ft

You can do this in a few ways…

Betting Against The Trend
If you are a trader, you could be against big, clunky bluechips which are unfit to survive this wave of changes. In Nevada, NV Energy lost a significant portion of its share value (6%) when MGM resorts and Wynn Resorts agreed to buy their power elsewhere…the casino Little Caesers followed shortly…

You could use various derivatives to achieve this…

Investing In Infrastructure
Another option would be invest in green energy infrastructure.

Developed nations such as China and the US have been investing heavily in infrastructure. There is however opportunity in less developed nations. India, Africa, Middle East have very little investment into green energy into solar. There is enormous opportunity in these sectors.

Source: ft

In the UK, you can invest in green energy infrastructure via investment trusts. They offer solid yields in a low interest rate environment and are relatively cheap…

Here are a few on offer:

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There are a few renewable energy funds out there…

Bluefield Solar Income. Yield - 6.95%

Foresight Solar Fund. Yield - 5.81%.

Greencoat UK Wind. Yield - 6.95%.

John Laing Environmental assets. Yield - 5.69%.

Next Energy. Yield - 5.57%.

renewables Infrastructure Group. Yield - 6.03%.

Here are a few articles I have dug up on everything:


#3

I also found some ideas online…there is a company called Atlantic owed by UK PE firm Actis - That could be worth a look.

Other brands include Atlantic, Echo Energia and Atlas

The development bank BDNES arranges the finance for the projects it seems…





What are the top emerging technologies to invest in? (2018)