Also read: Invest in sustainability ETFs
Invest in renewable energy stocks
Start here if you want to buy shares in sustainable energy companies in Australia.
As populations grow and resources become strained, renewable energy is now a major priority of governments around the world. For countries such as Australia, China and India, where electricity is largely generated from high carbon-emitting coal, the future of renewable energy is perhaps more important than ever.
If you're looking to invest in companies that support the growth of sustainable energy sources, you can start here. Below is a list of renewable energy companies that are listed on the Australian Securities Exchange (ASX).
Renewable energy stocks in Australia
Note: This is a general guide only and should not be taken as investment advice. The above list may not be fully representative of the Australian renewables marketplace.
How do I invest in renewable energy?
There are several categories of renewable energy including solar power, wind power, biomass, geothermal and hydroelectric, and some include nuclear energy to that list, despite its controversy. Below is a list of ways that you can invest in companies that support renewable energy.
- ASX renewable energy stocks. You can buy shares in renewable energy companies that are listed on the Australian share market.
- International stocks. Some of the biggest renewable energy companies are listed on stock exchanges in overseas markets such as the US or Canada. Access these through a broker that offers global stocks.
- Sustainability ETFs. ETFs contain a bundle of stocks, usually hundreds, and these often track an index of stocks. The renewables sector is still very small in Australia so there are few options to date for renewable energy ETFs on the ASX. There are many to choose from on global exchanges.
- Micro-invest. Some investment apps such as Raiz and CommSec Pocket offer sustainability funds that may support renewable energy companies.
How do I buy renewable energy stocks?
- Choose a share trading platform. If you’re a beginner, our table below can help you choose.
- Open your account. You’ll need your ID, bank details and tax file number (TFN).
- Confirm your payment details. You’ll need to fund your account with a bank transfer, debit card or credit card.
- Find the shares you want to buy. Search the platform and buy your shares. It's that simple.
Compare share trading platforms to buy renewable energy stocks
Important: Share trading can be financially risky and the value of your investment can go down as well as up.
Why invest in renewable energy?
In the last century, we've come to rely on fossil fuels to create electricity, power our vehicles and drive manufacturing. But overwhelming evidence says the extraction and use of coal, oil and gas are causing irreversible environmental damage and global warming. Fossil fuels are also finite – over time we'll be forced to rely on alternative energy sources, regardless of our environmental views.
With the world's population expected to reach almost 10 billion by 2050, both environmental constraints and limited fuel and water supply (used in mining) will increase our need for renewable and clean energy sources. For these reasons, investing in renewable energy makes both environmental and money sense.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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