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.
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.
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:
Please use the sharing tools found via the email icon at the top of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email firstname.lastname@example.org to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://www.ft.com/tour.
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: