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4 renewable energy investments to consider adding to your retirement portfolio

Written by V. Raymond Ferrara, CFP®

On April 3, 2022

Any technology that is intended to replace fossil fuels is considered a renewable energy source. Solar, wind, geothermal and hydroelectric power are all kinds of renewable energy sources. Technologies that can assist with this transition are also becoming very valuable. This can include smart grids that help us lower our overall energy consumption or improvements on electric vehicles. 

There is data that proves that this transition comes closer every year. In the year 2015, nearly 14% of the electricity production in the United States was derived from renewable sources. That number had swollen to 21% by 2020. Who knows how much renewable energy will grow in the coming decade?

Many investors are betting on this growth, and financial planning experts are suggesting that their clients do the same. Does your retirement portfolio already contain renewable energy investments? If not, it may be time to talk to your financial planner.

What renewable energy investments should I add to my portfolio?

  1. Solar power — Solar energy is expected to grow at a rate of 20.6% by the year 2026, according to market research. A recent surge in rooftop solar installations has contributed to an increased demand for solar cells. The current federal solar tax credit may be one explanation for this increasing demand.
  2. Electric vehicle production — As electric personal vehicles are becoming more affordable and accessible, the technology that drives the industry forward will be in high demand. This includes efficient green batteries, as well as the lithium mining required to manufacture them.
  3. Renewable hydrogen — As it stands, 95% of worldwide hydrogen production comes from fossil fuels. Hydrogen is used in a variety of industries that require higher output than electric power alone can provide, such as aviation. However, the use of renewable electricity to split water into hydrogen and oxygen in an electrolyser is fast becoming a viable option for renewable hydrogen.
  4. Wind energy — Wind power may truly be the most renewable energy source in existence. New wind energy projects account for over $10 billion in investments in the United States economy. While wind energy still faces some challenges, the 15% growth of wind power over the past 10 years is an excellent sign of future growth.

Talk to a ProVise CFP® professional about your options for investing in renewable energy

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about renewable energy investments? Contact ProVise today to schedule a complimentary consultation.

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