5 Top Clean Energy Technology that is Currently UnderratedDana Colson
Investors who are looking to make an impact on the future of clean energy technology and sustainability would be wise to take a closer look at some of the most underrated opportunities available today.
The effects of climate change and global warming are more evident than ever before, both in developing and developed countries. Shifts in weather patterns and seasons have resulted in severe famine in developed countries such as Kenya, Nigeria and Somalia.
One of the primary sources of greenhouse gases is burning natural gas and fossil fuels such as diesel. As a result, government and non-governmental organizations are working hard to increase the adoption of green energy.
Unlike conventional energy sources, green energy is considered clean as the environment is not polluted during production. Thousands, if not millions, of companies and individuals are switching to clean energy sources to promote environmental wellness and save money, as this form of energy is more affordable.
It’s estimated that the complete de-carbonization of the world economy will cost $150 trillion over the next thirty years. The demand for clean energy sources is expected to increase steadily during this period. The industry is expected to grow at a compound annual growth rate of 8.4%.
Which are the top clean energy sources in the world? This is arguably one of the most common questions we receive from our readers. Clean energy or green energy sources include;
- Green hydrogen
- Solar energy
- Wind energy
- Tidal energy
Clean energy stocks listed on trading platforms such as Wall Street benefit the most from the increasing demand for planet-friendly energy sources. Any energy company that wants to grow and remain relevant year after year – despite shifts in the market and the effects of climate change – should spring into action and embrace clean energy technology.
Here are the top five underrated clean energy technologies. Their stocks are listed and available to investors. Take advantage of the low prices to get ahead of the curve.
Albemarle is the leading manufacturer of lithium compounds, and its current market value is estimated at $23 billion. Lithium is one of the compounds used to manufacture batteries used in electric vehicles.
The company has been in business since 1887, and its profits have steadily grown. In the first quarter of 2022, Albemarle recorded a 36% increase in sales. Even though the European Union has hinted at categorizing lithium as a hazardous material, financial analysts firmly believe this is one of the best stocks to buy in 2023.
Brookfield Renewable is an international energy company leading the wave of alternative energy sources. The company is ranked among the world’s top producers of hydroelectric energy.
Apart from hydropower, Brookfield has also increased its investment in offshore and onshore wind turbines and solar power generation plants. The company specializes in selling a huge chunk of its clean energy via long-term PPAs. These arrangements help it enjoy a steady cash flow and meet its operating costs.
Since 2012, its annual earnings have been increasing at a compound annual rate of 10%. Dividend payments have been increasing at an annual compound growth rate of 6%.
According to the company, they expect their annual earnings to grow by 20% by 2026. Its extensive investment in new clean energy technologies and renewable energy development projects will make this dream a reality. The developments will also increase its dividends by 5-9% annually.
Solar energy is one of the world’s widely used forms of clean energy. First Solar is a company that has heavily invested in the solar energy industry. The company manufactures new generation thin-film solar panels that generate more power than its competitors.
The company is poised for success as demand for efficient and durable solar panels is expected to skyrocket. The management has also put measures in place to ensure that it consistently produces enough solar panels to meet the anticipated influx of demand.
In the second quarter of 2022, First Solar had exhausted its capacity to produce solar panels until 2024. However, it has a new plant in India that will catapult it to the helm of the clean energy transition industry. In addition, it has already contracted several reputable companies to help distribute and sell its panels across the globe.
First Solar’s ability to expand is undoubted, as it has one of the best financial balance sheets in the clean energy industry. Experts predict that the company will have a cash flow of between $1.3 billion and $1.5 billion by the end of 2022.
iShares Global Clean Energy ETF (ICLN)
iShares Global takes pride in having assets estimated to be worth $5 billion. The company is currently ranked as the largest clean energy ETF in the United States available to investors. Its 100 stocks portfolio includes international wind turbine companies such as the renowned Vestas Wind Systems AS and Enphase Energy Inc., a global solar energy company.
As other energy stocks on Wall Street dipped, the ICLN stocks remained unchanged throughout the year. If you are looking to make a long-term investment in the clean energy industry, ICLN is a perfect choice for you.
With an estimated market value of $26.0 million, Enphase energy is one of the most profitable domestic and international solar industry companies. This California-based green energy company is positioned as one of the best green energy stocks in 2023 and beyond.
In a recent interview, the CEO of Enphase, Badri Kothandaraman, said, “Climate change, coupled with situations like Ukraine, is forcing European countries and others to think hard about their reliance on oil, coal, and natural gas. Self-consumption is becoming the norm and consumers want energy independence.”
The company is best known for manufacturing efficient semiconductor-based micro-inverters that convert solar rays into solar energy that is reusable. The equipment runs on advanced software that continuously monitors and controls energy storage in the micro inverters.
Above are the top five clean energy stocks that are underrated despite their potent ability to increase in value over time. As more people become aware of the dangers of conventional energy sources and the benefits of switching to green energy, the demand and price of these stocks will increase.
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