There are plenty of popular ways to reduce your energy consumption which helps you do your part every day to live a more sustainable life. From making sure you turn off the light when you leave a room, updating your electrical appliances, unplugging items not in use, or installing a dimmer switch, there is never a lack of steps you can take to reduce energy use. All it takes in a conscious effort and a willingness to bring change to your living environment.
But what if you want to do more than simple at-home tasks? You take the time each day to be the most caution you can, but you feel like you could be helping with our energy crisis in different ways. You could talk your family and friends’ ears off, hoping that they change their ways. Or, you could take practical steps you know will pay off in the long run, step you can control. This is where investing comes in. Not only can investing in companies that promote renewable energy benefit the planet, but they can also benefit your wallet. By investing, you are supporting the company with your funds, but you are also able to send a message through your spending that companies who conserve energy matter in the scope of our environment and economy.
There are plenty of renewable energy companies that are looking for investors to procure funds and help them achieve their environmental goals. This allows them to continue making changes in our world. And, with the ease of online stock brokers, it can become a part of your daily conservation routine. We’re going to detail the top 3 renewable energy stocks to invest in from companies that are working to make a change, instill values that protect our planet, and can bring you one step further to doing your part.
1. NextEra Energy (NEE)
NextEra Energy is the world’s largest producer of solar and wind energy with over 45,900 megawatts of generating capacity. They generate a revenue of over $17 billion with their 14,000 employees as a company proudly founded and based in America. They generate more wind and solar energy than anyone in the world and are well known due to their work with the Florida Power and light subsidiary. This subsidiary provides over 5 million residents with rate-regulated electric utilities.
NextEra Energy is also one of the largest players in the infrastructure investing space, planning on investing $40 billion by 2020. They continually innovate the space with the development of their storage centers, including their Babcock Ranch Solar Energy Center, which is the largest in the country. They currently have storage facilities in Arizona, California, Florida, Illinois, Maine, New Jersey, and Pennsylvania. Projects under development for NextEra can be found in Arizona, California, Florida, New York, Texas, and Ontario, Canada.
They work based on energy distribution through long-term contracts, which ensures that they will have a steady cash flow as long as they have a deal. This is an essential element in ensuring investors have a continual return on their investment. NextEra Energy also has dividends that yield 3.7% to their investors, which come from the success of these contracts. With these returns, they only expect to continue growing in the renewable energy space and the stock market.
2. Pattern Energy (PEGI)
Like NextEra Energy, Pattern Energy also works in the solar and wind space utilizing long-term contracts and has facilities in both North America and Japan. They pride themselves on having great partnerships with other big players in their industry, like with Siemens, and are continually generating deals through those avenues. It is because of these strong relationships that they are a huge player in the renewable energy space.
They have utility scale projects in the United States, Canada, Japan, and Mexico. They live by their everyday mission of “transitioning the world to renewable energy,” according to their website. They are very particular about their company goals, continually tracking where they are in the industry, and planning out future endeavors to ensure progress, with their next benchmark being the “Pattern 2020 Initiative.” This initiative includes doubling the megawatts they own and manage.
Pattern Energy is great for those looking to diversify their portfolio with a company doing their part in the energy consumption space, or the casual investor who wants to help the industry move forward. They are eagerly working towards the general perception and acceptance of wind power and care just as much about their investors.
3. Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners joins the list as the third company to bring clean energy on a worldwide scale. The company was founded in the 1890s in Brazil when they installed the first electrical lights in the town of Sao Paulo. With facilities in North America, Europe, and Latin America, they produce about 16,300 megawatts of power each year. They generate enough power for about 2 million homes just in North America.
Brookfield’s investment goal is “to deliver long-term annualized total returns of 12%–15%, including annual distribution increases of 5–9% from organic cash flow growth and project development. It has an established track record of creating value by prudently acquiring, building and financing assets, and actively managing its operations,” according to their website. They also stand proud by the fact that they’re the global leader in hydroelectric power, which makes up about 76% of their portfolio.
They also operate under the use of long-term contracts, with a typical contract spanning about 15 years. With these lengthy agreements and a consistent pace of cash flow to the company, Brookfield Renewable Partners puts themselves in a great position to continue growing and rewarding their investors for their help.