Asset allocation model
Renewable energy is gaining market share in a world that is growing more concerned with the effects of climate change. Technology has made solar a viable energy source, with the Solar Energy Industries Association reporting substantial upticks in solar energy installations and expectations of continued growth. With ample growth potential, solar-focused companies can make for great investment opportunities. The industry encompasses a variety of different companies: some manufacture the equipment and components; others install solar systems; some produce and sell solar power. Each can provide an entry point to an industry that is expected to rake in trillions in investment in coming decades.While the solar industry has experienced growing pains, there are several top performers sure to pique investor interest. Tesla and Panasonic are tangentially involved in solar panel manufacturing (though this is not the primary business of either company); manufacturer First Solar has distinguished itself in a capital-intensive industry, while renewable energy provider Pattern Energy has tripled its size since its 2013 IPO. It is expected that solar will account for almost half of all energy in the US in the future – investors who can weather the developing market and invest wisely stand to profit as a result.