What is renewable energy and why is it a major investment opportunity?

Renewable energy comes from naturally replenishing sources like sunlight, wind, and water instead of limited fossil fuels like oil and gas. It's considered a major investment opportunity because the world is transitioning to cleaner energy sources to combat climate change and reduce dependence on fossil fuels. This global shift requires massive new infrastructure and technology development, creating potential growth opportunities for companies in this space.

What is green hydrogen and why is it important?

Green hydrogen is hydrogen produced using renewable electricity (like solar or wind power) to split water molecules through a process called electrolysis, creating zero carbon emissions. It's important because hydrogen can store energy, fuel vehicles, heat buildings, and power industrial processes - all while producing only water as a byproduct. Unlike traditional hydrogen production methods that use fossil fuels, green hydrogen offers a truly clean alternative for sectors that are difficult to electrify.

What are photovoltaic (PV) modules?

Photovoltaic (PV) modules, commonly called solar panels, are devices that convert sunlight directly into electricity. They're made up of many solar cells that contain materials (usually silicon) that generate an electric current when exposed to light. These modules are the fundamental components of solar energy systems for homes, businesses, and utility-scale power generation.

Why do renewable energy stocks benefit from government policies?

Renewable energy stocks often benefit from government policies because many countries provide financial incentives (tax credits, subsidies, grants) to accelerate clean energy adoption. Governments also create renewable energy standards and carbon emission regulations that favor clean energy over fossil fuels. These policy supports can significantly improve business conditions for renewable energy companies, potentially increasing their revenue, profitability, and growth prospects.

What is an inverter and why is it important for solar energy?

An inverter is an electronic device that converts direct current (DC) electricity produced by solar panels into alternating current (AC) electricity used by homes and the power grid. It's critical for solar energy systems because without this conversion, the electricity generated by solar panels couldn't power standard appliances or be fed into the utility grid. Advanced inverters (like microinverters) can optimize each panel's output individually, increasing system efficiency and performance.

15 handpicked stocks

Future of Energy

This collection showcases the innovative companies leading the worldwide transition to renewable energy. These carefully selected stocks represent the best opportunities in solar, wind, hydrogen, and battery technology, as identified by our professional analysts.

Han Tan | Market Analyst

Updated 2 days ago | Published at जून 17