Solar Investments Considered Safe

June 17th, 2014 | News | No Comments

Solar Power Considered Safe Investment

A new trend has begun to approach on the stock charts as of late – pension fund managers are investing more and more into solar energy. Many people consider renewable energy stocks a risky gamble because many are unsure of what the future has in store for these up and coming technologies. However, many managers are saying that an investment in solar power is a safe alternative to traditional securities much like corporate and government bonds.

According to Benjamin Hill, president of Trina’s Unity in Europe, pension managers are “prepared to invest more in PV, as they have done with wind, because they see it as a sustainable and reliable income.” This very comment is great evidence that portfolio managers are getting increasingly comfortable with solar projects and see them as stable returns while central banks keep their lending rates at near historic lows.

Solar Energy Considered a Mature Technology

While many of the funds are generally interested in large scale utility projects, that earn anywhere between 2 and 5 percent, they are mainly interested in the reliable, near-guaranteed growth that solar power has to offer. Earlier this year, U.K. insurer Prudential PLC bought 25% of NextEnergy Solar Fund LTD, which was newly listed at a valuation of $144 million dollars. Additionally, the South African Government Employee Pension Fund said earlier this month it plans on buying a 40% equity stake in Soitec SA.

What Does This Mean for The Average Joe?

If you’re like most of us, you probably don’t have a few million extra dollars lying around to invest directly into a solar power company. However, what this information is showing is that the big guys are beginning to trust solar companies as a great vehicle for stable returns, meaning it may be worth a look to the small guys on the outside who wouldn’t mind a moderate return within their retirement account or other brokerage account.

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