As the world becomes more urbanized, many are increasingly interested in clean energy stocks, as are younger investors seeking renewable energy options to diversify their portfolios.。

Different types of renewable energy stocks

1.Solar

Solar energy is a technology developed to obtain energy from the sun. Since the past few centuries, solar energy has been widely used in many traditional technologies。Hot water, building heating and cooking are all examples of solar energy utilization。In fact, solar energy can also be used to power heat engines. Solar panels made using cutting-edge technology can generate electricity every day. Many homes, factories and industries are already using this clean energy to generate electricity。

2.water energy

Hydro energy, also known as hydroelectric power, is generated primarily by dams or the ocean。Since 71% of the world is made up of water, this energy should be widely used。

3.Wind energy

Wind energy is a type of kinetic energy from air turbines that uses wind power to generate electricity。This is a clean and inexpensive energy source that helps provide electricity to remote or hard-to-reach residents due to its wide range, while reducing operating costs compared to traditional energy installations。

How to invest in renewable energy stocks？

1.direct investment project

One of the easiest ways to get involved in a green energy investment is to find a new wind farm or solar project and apply for funding。In the long run, this type of direct investment has the potential to pay off, but if the project fails, there is a risk that the funds will not be recovered。

Therefore, it is essential for investors to conduct extensive research on companies and projects before deciding to invest and implementing a sound investment strategy。

2.Exchange Traded Fund (ETF)

ETFs are another way to invest and diversify your portfolio in the renewable energy sector。Due to its high liquidity, ETFs offer investors the ability to buy and sell easily。However, some ETFs can be physically backed, so it is important for investors to understand the ETF types, tracking and fees involved before investing。

3.Renewable Energy Stocks

Another way to get involved in the green industry is to buy individual energy stocks。Investors can now easily find companies that produce solar panels or other related commodities that provide renewable technologies to secure investments in clean energy stocks.。

However, this type of investment should be included in your long-term investment strategy as a way to diversify your portfolio and spread risk。

4 Best Renewable Energy Stocks to Invest in Malaysia

Plus Xnergy

Plus Xnergy, also known as Plus Solar, is a major player in solar projects in Malaysia focused on the transition to clean energy.。The company has a project record of more than 125MWp helping the country reduce emissions of 107,570 tonnes of carbon dioxide each year.。

Mega First Corporation Bhd

Mega First is a Malaysian company with long-term investment controlling interests in multiple industries (mainly renewable energy) and owns and operates multiple renewable energy power plants across the country.。

Solarvest Holdings Berhad

Solarvest Holdings Berhad shares in RM 1.19, with a market cap of RM 7.943.9 billion, providing engineering, procurement, construction and operation services for solar projects through its subsidiaries.。

Jaks Resources Berhad

JAKS shares lower for RM 0.38, with a market cap of RM 8.067.2 billion, is a company mainly engaged in water supply and infrastructure construction projects in Malaysia and power generation in Vietnam.。

How to diversify your portfolio through this stock?

Every investor's goal is to maximize the total return on investment, however, investing in the stock market carries a significant risk of loss。Therefore, portfolio diversification is one way to reduce the risk of each investment。

Therefore, investors must understand that it is best not to put all your money into one type of investment。Instead, it can be achieved by investing in a number of financial market sectors and sectors within the renewable energy sector (e.g. stocks, bonds, ETFs and mutual funds).。

Risks of Investing in Renewable Energy

weather change

As the primary products of the renewable energy industry are heavily dependent on natural resources such as wind, solar and water, they can be severely affected by weather and seasonal changes。As a result, the profit and loss of a renewable energy stock is relatively volatile。

Low production efficiency

Since the renewable energy industry is relatively new, production efficiency is still being studied and closely monitored, and your profits may also be affected。

energy storage problem

High production can cause storage problems due to limited renewable energy。It turns out that such storage problems are very serious and are likely to have an impact on the company or project revenue。

false statement

One of the most serious risks for investors interested in clean energy is being deceived by companies that claim to be socially responsible energy companies but are not.。Therefore, extensive research is required before making investment decisions。

Please identify your definition of social responsibility and then look for projects or companies that meet the requirements。Some renewable energy companies may offer the right services and products, but they do so in ways that harm other parties, such as large solar farms or hydroelectric plants that can disrupt the production of fossil fuels that disrupt wildlife, displace people and ecosystems, and so on.。

Why Invest in Renewable Energy Stocks？

Many people who turn green energy into an investment opportunity also believe that in order to survive, they need to reduce their carbon footprint, reduce gas emissions and increase the use of clean energy.。

1.Requires less maintenance

Renewable energy requires much less maintenance than other energy sources because it is derived from natural resources, ensuring that costs are kept low and profits are maximized。

2.continuous supply

Another reason is that its natural source can ensure the continuity of the supply chain.。

3.Price reduction

Renewable energy costs less than fossil fuel sources and is not as volatile as other energy sources because most of the money is pre-spent on infrastructure.。

4.Multiple renewable energy stocks and companies

There are many different types of renewable energy companies to choose from, so investors can participate in any of the various types of green energy, as well as any stock or company that provides renewable energy.。

Conclusion

While investing in renewable energy stocks brings huge benefits, there are also relatively high risks。The renewable energy market is growing, so it is best for investors to diversify their portfolios into a variety of products (i.e. ETFs, stocks or bonds) to minimize risk。

Investors are advised to look for strong renewable energy companies or projects with reasonable debt ratios and long-term growth prospects before deciding to invest.。

FAQs

Which stocks involve renewable energy？

Brookfield Renewable Energy Partners Limited (BEP) Algonquin Power & Utilities (AQN) NextEra Energy Partners, LP (NEP) Clearway Energy (CWEN)

How about investing in renewable energy?？

Investing in renewable energy is low-risk, profitable and long-term, not only good for the economy, but also good for the environment and the future of the planet。

What is renewable energy in Malaysia?？

Malaysia's renewable energy resources include biomass, solar energy, small hydropower, municipal waste and biogas。The most important renewable energy sources in Malaysia are biomass, hydro and solar.。

Are renewable energy groups a good stock to buy?？

The stock may be undervalued at the moment and REGI's financials and growth prospects suggest it has the potential to outperform the market.。

Who leads in renewable energy？

The leading countries for renewable energy installations in 2020 are China, the United States and Brazil.。