Would it be smart to invest in green energy at the moment?

Question

or possibly start my own green energy company?

Answer 1

Economics say NO.  Green energy is the most expensive  form of energy.  While many people want to be green and will be green when they can, most prefer to purchase the least costly form of energy.  

For the majority of the population, It comes down to purchasing milk and cereal, or green energy. The necessities win every time.  

Answer 2

I have made money following the lead of T. Boone Pickens. He is on a big green energy kick right now, and very vocal about it.

Answer 3

If you were to invest in green energy. I would recommend GE. They have their hands in wind, solar, and nuclear. They have been beaten down from their 52 week high of $43 to around $29 and are an all around solid company. Careful what direction you decide to take with green energy, ethanol was supposed to be the cure-all for our energy woes and look what has happened to it..  

Answer 4

I agree with the first poster about GE. I it is safe to say they are slowly becoming a diversified play in this industry. They are down due to the activities of GE capital, but that will change.

I strongly disagree with the second poster's view of the economics of green energy. This is changing quickly. It may be the case today. However, some of the ROI on such things as solar thermal (not voltaic) are starting to beat out gas plants. Sure, solar and wind are surviving on tax subsidies that are causing false demand. However, that will change as hydrocarbons continue to have supply issues.

I recommend First Solar (FSLR). They are a profitable company, thought the valuation is high. But they are solid. I also like Sunpower (SPWR). These are less risky. There are tons of ultra small caps, but that gets risky. I advise staying away from ethanol as an investment. The unfortunate thing is that most of the good wind companies beyond GE are in Europe and trade on other exchanges.

I cover FSLR on my blog: