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Experts uncover surprising reason investors are piling into energy sector: 'Money talks, [and] it's screaming'

Part of this market growth is thought to be a result of government policies.

Part of this market growth is thought to be a result of government policies.

Photo Credit: iStock

A TopNews article is taking a closer look at why renewable energy is becoming a good investment, highlighting the future of energy investing and how to maximize your returns while helping the planet.

"Money talks, [and] it's screaming about renewables," the article states.

It cites that in 2024, global investments in the transition to clean energy were up by 11%, totaling $2.1 trillion, and are projected to grow by about 17% each year in the near future.

Part of this market growth is thought to be a result of government policies. The U.S. Inflation Reduction Act is offering subsidies and tax credits for companies and individuals investing in energy-efficient products and policies, and the world is taking notice. Some of these incentives may be at risk under the current administration.

The article highlights that cost reduction surrounding clean energy is increasing profitability for companies that are investing in the environment, sharing that solar panel costs have dropped by 30% in recent years, lithium battery prices dropped by 40% in 2024, and costs for wind turbines and energy storage are following a similar downward trend.

There has been less demand for energy sources that are the source of the majority of pollution, and studies have shown that solar and wind now outperform coal and gas, which means investors can gain more profit from putting their money into clean energy.  

Even if you're not a heavy-hitting investor, you can make an impact by supporting companies that are taking action that aligns with their eco-friendly policies. By purchasing sustainable products whenever possible and choosing to support businesses that are working toward being more environmentally friendly, we can send a message that planet-saving actions have a positive effect on their bottom line as well as on the environment. 

If you are interested in investing in environmentally-friendly companies and making financial decisions that align with your values about the environment, GreenPortfolio is a free resource that can help you understand how to make investments that benefit the planet and your wallet. GreenPortfolio connects individuals with remote financial advisors who can help simplify the process in terms of individual investments and your overall portfolio.

The TopNews article sums up the trend: "More money flowing in, friendly government policies, prices going down, [and] people wanting cleaner energy — all this makes renewable energy incredibly attractive to investors."

Will America someday get all its energy from renewable sources?

Yes — very soon ☀️

Yes — by 2050 ⏰

Yes — by 2070 ⏳

Probably never ❌

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