Green energy has become as popular as it can be coined with fashion. There are numerous examples of renewable energy ranging from solar energy, biomass, bio-fuel, cell technology, wind, geothermal, hydropower amidst a comprehensive list of both products and services offered to maximize the use of alternative sources for energy. On one side, investors are suffering from credit crunch while on the other side investors in green technology are seeing a rise across the green field.
The inflow and use of money is a question that many are asking. Yet, some examples of investments are placed in:
1. Venture Capital
Money is accumulating for green energy companies and it has been coming from venture capital for a longtime. The crack of the downturn and back to recovery has triggered initiative to solicit funds from various investors to propel growths. Yet, at a period of instant recovery, money is hard to find, companies have low amount of liquid and this is making investment a difficulty. On the other hand venture capital firms are in search for new investment opportunities and the green field appears to be the Holy Grail.
2. Investment Banks
The bank sector, which has recently been provided with stimulus packages, is supporting renewable energy. Deutsche Bank, UBS and Goldman Sachs are among the largest funders for solar and wind energy.
Moreover, the World Bank is providing the United State with finance to pursue its green technology developments. The funding provides American firms with a possibility to exploit new technology which can likely help to progress energy effort at a global perspective.
3. Mutual Funds
Mutual Fund managers are speculating on fast-growing portfolios. The green energy sector is a leader in the fast growing industry, with projects taking-off at global levels.
4. Government Funding
The recent American Investment and Recovery Act of 2009, is providing companies with grants in the field of smart grid, energy efficiency, green product and other renewable sources. Moreover, as America depends on energy sources from other borders, the funding is expected to remain present until a higher degree of self-sufficiency is reached.
There is a list of funding offered across states in America. The list can be found on U.S department of Energy funds the Database of State Incentives for Renewable and Efficiency (DSIRE).
http://www.dsireusa.org/
5. Bottom Line
Going to the bottom line, individual investors are providing funds to the green energy field through mutual funds. Taxpayers are funding government grants and so on.
In broad term the funds for green technology is following the demand for it. The public considers green as being the fashion of today and the future of tomorrow. This is what is making it a sustainable investment. Investing in renewable energy brings profit through a socially justified act.
Sources: Forbes
Leave a Reply
You must be logged in to post a comment.