# What to Know About Investing in Renewable Energy

- Link: https://greenlivingguy.com/2021/06/what-to-know-about-investing-in-renewable-energy/
- Published: 2021-06-15T14:37:17-04:00
- Author: Eillin Delapaz

The eco-conscious movement recently expanded into the residential sector. Now, businesses
and homeowners can generate their own [clean](https://greenlivingguy.com/2017/09/greenbyte-releases-series-of-infographics-on-renewable-energy-in-europe/),
[off-grid energy](https://greenlivingguy.com/2019/01/budweiser-launching-renewable-energy-for-your-home-program-with-drift-kickoff-superbowl/).
Investing in renewable energy has various benefits.

Before evaluating the commercial and residential benefits, we must examine the energy
sector’s environmental influence.

![The eco conscious movement recently expanded into the residential sector Now businesses
and homeowners can generate their own clean off grid energy Investing in renewable
energy has various benefits](https://i0.wp.com/greenlivingguy.com/wp-content/uploads/
2021/06/IMG_3503.jpg?resize=420%2C315&quality=52&ssl=1 "What to Know About Investing
in Renewable Energy - The Green Living Guy")

## **Renewable Energy and the Environment**

The U.S. sources most of its[ energy from fossil fuels](https://www.eia.gov/energyexplained/us-energy-facts/#:~:text=The%20United%20States%20uses%20a%20mix%20of%20energy%20sources&text=Primary%20energy%20sources%20include%20fossil,produced)%20from%20primary%20energy%20sources.),
like [coal and natural gas](https://greenlivingguy.com/2011/11/renewable-energy-study-challenges-fossil-fuel-costs/).
Fossil fuels efficiently convert natural resources into electricity. They also contribute
to the enhanced [greenhouse](https://greenlivingguy.com/2005/07/now-global-warming-is-a-mortal-sin/)
effect.

Earth uses a natural process, heating the surface to a life-sufficient temperature.
The atmosphere absorbs [solar radiation](https://greenlivingguy.com/2011/05/new-solar-product-captures-up-to-95-percent-of-light-energy/),
converts it to heat, warms the surface, reabsorbs excess heat and sends it to space.
When we [burn fossil fuels for energy](https://greenlivingguy.com/2012/02/jacob-burns-film-centers-commitment-to-energy-efficiency/),
we generate air pollution, interfering with organic temperature control.

Greenhouse gases have a high sunlight-to-heat conversion rate. They[ overproduce heat and trap excess energy](https://www.environment.gov.au/climate-change/climate-science-data/climate-science/greenhouse-effect)
in the atmosphere rather than sending it to space. The overproduction and entrapment
of warmth increase the global temperature over time.

High temperatures cause adverse ecological effects. Fortunately, [renewable energy](https://greenlivingguy.com/2009/08/renewable-energies-for-your-home-real-world-solutions-for-green-conversions-tab-green-guru-guides/)
offers a sustainable solution to climate change.

## **Residential Investments**

When driving through a conventional neighborhood, you may notice an increase in 
solar-paneled roofs. Solar system[ sales increased by 43% between 2019](https://www.cnbc.com/2021/03/16/the-us-solar-industry-posted-record-growth-in-2020-despite-covid-19-new-report-finds.html#:~:text=The%20U.S.%20solar%20industry%20had,a%2043%25%20jump%20from%202019.)
and 2020. The declining tax incentive influenced extensive industrial growth.

Investing in a residential renewable energy system can provide homeowners with a
significant tax refund. Customers[ receive a 26% tax incentive](https://news.energysage.com/solar-tax-credit-explained/)
following a clean energy device purchase. Large-scale systems can eliminate one’s
utility costs, increasing [savings](https://greenlivingguy.com/2021/02/4-reasons-to-profit-from-solar-in-2021/)
over time and decreasing the payback period.

Homeowners can also sell excess renewable energy to the state for a passive profit.
Unlike [oil and gas](https://greenlivingguy.com/2019/12/political-climate-shifting-against-the-oil-and-gas-industry/)
sales, most states have a 100% tax exemption rate for solar sales. When property
owners sell oil and gas extracted from their property, they are charged with an 
ad valorem, state, federal and severance tax, limiting their net profit.

## **Commercial Investments**

Eco-consumer [demands are rising](https://greenlivingguy.com/2005/07/rising-demand-puts-pressure-on-proven-reserves-which-have-not-seen-a-significant-boost-in-30-years/),
challenging businesses’ sustainability practices. Nearly[ 65% of Generation Z consumers](https://www.forbes.com/sites/gregpetro/2020/01/31/sustainable-retail-how-gen-z-is-leading-the-pack/?sh=18dcd2482ca3)
solely purchase sustainably sourced goods and services. Over half of Millennials
follow similar eco-conscious trends.

Companies can increase sales, customer loyalty and brand awareness by investing 
in renewable energy. They can also remain competitive in their changing industry.

Consumers search for purpose-driven brands. Incorporating renewable energy sources
into your business can drive community support. Increasing company-wide[ sustainability practices can influence community](https://environment.co/benefits-of-going-green/)
members’ eco-friendly habits.

## **Return on Investment (ROI)**

The cost of renewable energy, like solar power,[ decreased by 82% since](https://www.irena.org/newsroom/pressreleases/2020/Jun/Renewables-Increasingly-Beat-Even-Cheapest-Coal-Competitors-on-Cost)
2010. [Wind energy](https://greenlivingguy.com/2022/08/10-largest-wind-project-development-2022/)
system prices also fell by 47% percent, increasing the opportunity for a high ROI.
Though initial device installation costs are high, renewable systems can eliminate
one’s electricity bill.

Solar energy costs[ recently dropped below $0.05](https://energypost.eu/5-charts-show-the-rapid-fall-in-costs-of-renewable-energy/#:~:text=Fossil%20fuel%2Dfired%20power%20generation,%2FkWh%20and%20%240.18%2FkWh.)
per kilowatt-hour. Fossil fuel-derived power prices reach up to $0.18 per kilowatt-
hour, making solar energy more cost-effective for residential and commercial consumers.
Over time, [renewable energy](https://greenlivingguy.com/2015/05/feed-in-tariff-scheme-sustainable-energy-savings/)
can significantly increase one’s utility savings.

In the residential sector, adding renewable energy devices to your property can 
increase a home’s value. Researchers found houses with solar panels[ sell for $15,000 over](https://www.energy.gov/eere/solar/articles/solar-homes-sell-premium-0)
the original asking price. Buyers view renewable energy device installations as 
renovations, improving the home’s efficiency.

## **President Biden’s Market Influence**

If you previously invested in the fossil fuel industry, it is optimal to adopt clean
energy investments. The market expands daily and will continue growing. On his first
day in office, President Biden signed the U.S. onto the Paris Agreement.

Our signature represents our national commitment to greenhouse gas emission reductions.
We will reduce the global temperature by[ two degrees Celsius below pre-industrial](https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement)
levels, using renewable energy.

Biden also developed the Build Back Better policy, allocating two trillion dollars
to clean energy development. The funds may support renewable energy job creation
and device manufacturing. He plans to generate carbon neutrality, replacing fossil
fuel-driven [energy with clean](https://greenlivingguy.com/2014/01/honda-wind-turbines-contribute-to-clean-energy/)
sources.

## **Where to Start**

If you are [ready to incorporate renewable energy](https://greenlivingguy.com/2006/08/energy-dept-ready-to-tap-emergency-oil/)
into your business or home, you may start by evaluating local suppliers. Many companies
sell and install [solar and wind power](https://greenlivingguy.com/2013/03/ja-solar-powers-israel-negev-desert-project/)
systems, decreasing the overall price. You may also schedule an energy evaluation
before making your purchase, ensuring adequate power support.

For individuals without access to installations, you can financially [invest in clean energy](https://greenlivingguy.com/2021/10/protecting-people-the-planet-how-two-retirees-are-going-green-with-geothermal/)
stocks. You may discuss your options first with a financial advisor before investing.
Whether you invest in stocks or [renewable energy](https://greenlivingguy.com/2019/07/solar-decathlon-postcards-from-the-greenest-neighborhood-on-earth/)
devices, you are shrinking your carbon footprint and increasing your ROI. 

**Bio:**

Jane is the Editor-in-Chief of [Environment.co](https://environment.co/) and an 
environmental writer covering green technology, sustainability and environmental
news.

![author avatar](https://secure.gravatar.com/avatar/f30a82826ab5e40ae1efde55aa735f0579f0105f7692fc289aebf0d58584c37e?
s=300&d=monsterid&r=g)

 Eillin Delapaz

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