Investing in Renewable Energy Projects

Investing in Renewable Energy Projects

It doesn’t really matter whether you place solar panels on your home or not – you can still feel the benefits of this energy by investing in a renewable energy project. This is a good way to diversify your portfolio with a long-term investment that ultimately is good for the planet. If you are wondering why you should invest in these types of projects, keep reading, and we will highlight why:

  1. Stability

We can all agree that the sun and wind is a natural resource that we should tap into. Of course, they are not evident all the time, but they are still around even when we don’t feel them. Experts provide detailed information about windy and sunny days in every area so, by investing in renewable energy, you are investing in something that is all round us and will provide stable returns in the future.

  1. High ROI

If you compare investments in renewable energy projects and investments in cash savings accounts, you will notice that the first option promises much higher ROI. According to many sources, renewable energy projects can get you up to 5 times higher returns. Of course, they can sometimes be riskier than cash savings accounts too, so each project should be judged on its own particular merits.

  1. Effects on local communities

Renewable energy projects have an excellent effect on local communities. There is no doubt that homeowners will feel the advantages of renewable energy in the form of smaller bills and this is the reason why local authorities and the government are introducing different incentives.

  1. Effects on energy security in the UK

The UK has to import energy and this makes our country vulnerable to international politics. So, one of the main reasons why we should invest and support renewable energy projects is energy security. This means that if you own it and it is physically present in the UK, this form of energy is much safer and logical than importing energy from overseas.

  1. Low risk

Whilst it is true that renewable technologies are fairly new, it is also true that they are very dependable. Insurance companies issue warranties for turbines and panels which are part of these projects for two decades of even more. There are many cases when these panels and turbines last for more than 25 years without any problems.

  1. Not affected by inflation

Renewable energy projects rely on a feed-in tariff which means that when the energy prices are increasing, the developers are getting additional energy for the produced energy and a percentage of these returns are redirected to all the investors. In other words, they are getting money back from their investment regardless of the energy bills.

  1. Long investment term

Short-term investments are not usually a good idea. On the other hand, long-term investments are not only good for investors, but also for the economy in general. To reiterate, investments in renewable energy projects are long-term investments. These investments allow for re-investments that can bring even higher returns further downstream.

Want to know more about investing in renewable energy projects? Contact us now.