We all know that the price of crude oil has increased by 61.13% in the last year. It simply means that the non-renewable resources are limited on the planet and we need to find a suitable alternative for our needs.
Here green energy comes into play. Due to high demand, the price of petroleum, crude oil, and CNG has been on a continued rise which makes the people difficult to sustain. To tackle such issues, many companies have started generating green energy from natural resources such as wind, sunlight, air, water etc.
The companies which generate green energy, the stocks of these companies are known as green energy stocks.
What are Green Energy Stocks?
The companies which generate green energy from natural resources such as sunlight, water, and air are called green energy companies and hence the stocks of these companies are known as green energy stocks.
The companies produce green energy with an objective to minimize pollution and save the environment from the destruction such as mining which may damage the whole ecosystem.
Nowadays many investors are willing to put their money in green energy stocks as they give outstanding stock market trading returns to them.
Are Green energy Stocks Worth Investing?
Green energy is the need of the future, hence its requirement will never end. Below are the reasons why you need to invest in green energy stocks:
Unpredictable Fossil Fuel Prices
The uncertain price of fossil fuels gives rise to green energy. We can understand it by taking the example of crude oil prices. During the pandemic, the demand for crude oil completely stopped, and as a result, the price for the same got also declined.
Recently, we experienced a huge demand for crude oil which in turn increased the price as well.
Government’s Actionable Step to Save the Environment
Seeking the importance of green energy, several governments have started in investing green energy in order to save the environment from hazards. As the production of green energy increases, the growth also increases, which in turn increases the stock prices.
Climate change and pollution are the major reasons behind global warming. To solve this problem, green energy came into existence which is produced by air, sunlight, wind and water.
To combat such things, the companies with the help of the government have already started taking actionable steps by replacing fossil fuel vehicles with electronic vehicles as thy reduce the carbon emission to a greater extent.
Here are the Top Green Energy Stocks to Invest in 2022:
Adani Green Energy Ltd
Adani Green Energy is considered one of the largest renewable energy companies in India. According to the sources, the company has power projects in 11 states in pan India. Also, the company has a capacity to generate a power of 13,990 MW.
The stock had given an outstanding return of 57.8% from 30 July to 29 December 2021.
JSW energy limited is a part of the Jindal group. The company is primarily known for generating green energy as it has a total of 6 electricity projects across India with a capacity of 4,559 MW. Also, the company is planning to set up 3 projects in the near future.
Tata power has the motive of generating green energy from renewable energy sources. Currently, the company has a total capacity of generating 12,800 MW through several hydro and thermal projects.
If we talk about the stock prices, Tata power gave satisfying returns as the share prices increased from Rs 74.15 to Rs 218.60 in a short period.
Gas Authority of India Ltd is the largest natural gas processing and distribution corporation in India. Incorporated in 1984, GAIL currently owns over 11,500 kilometers of natural gas pipelines and over 23,00 kilometers of liquefied petroleum gas pipelines in India.
The majority of the revenue of GAIL comes from the distribution of natural gas.
Revenue breakup of GAIL
- Natural Gas trading and marketing – 76.5%
- Petrochemicals – 7.5%
- Natural gas transmission – 7.5%
- LPG and another hydrocarbon – 5%
- LPG Transmission – 1%
- City Gas – 0.83%
- Other sources – 1.4%
Borosil Renewables is a solar glass manufacturer that manufactures several products such as scientific ware, and consumer ware products. It generates 77% of its revenue from India itself and the remaining by doing exports to USA, Europe and Turkey.
Tips to Invest in the Top Green Energy Stocks
Although there are several green energy stocks available on stock exchanges, finding a good green energy stock would be a challenging role and needs a lot of stock market research and time.