Investing in green energy, how does it work?

More and more people are investing in green energy. Not surprising, because green energy is the future and can provide an attractive return. What shapes are there and what are the options?

What is green energy?
Green or sustainable energy is generated from renewable sources such as wind, sun and water. Gray energy, on the other hand, comes from scarce fossil fuels such as natural gas, coal and oil. These fuels will eventually run out.

What forms of green energy are there?
If you want to invest in green energy, you have several options. For example, you can purchase solar panels yourself or invest in solar energy projects. You can also invest in solar parks, wind farms, hydropower plants, geothermal projects or biomass plants. Experts do discuss the question of how sustainable bioenergy (energy from organic material such as organic waste and wood chips) is, because a lot of CO2 is released during combustion. The origin is also important; sometimes forests disappear especially for the combustion of biomass.

Benefits of investing in green energy
By investing in green energy, you contribute to reducing polluting fossil fuels and reducing CO2 emissions. Moreover, green energy is an interesting growth market: governments are strongly committed to the energy transition and by 2050 our energy supply must be almost entirely sustainable. Green electricity is therefore a good option for a long-term investment. It offers a good chance of an attractive return.

Disadvantages of investing in green energy
Any form of investing involves financial risks. This also applies to investments in green energy. Think of disappointing returns or (partial) loss of investment. So always be well informed.

How can you invest in green energy?
There are several options for investors to contribute to a more sustainable world. The best-known options are sustainable investing and green investing. Anyone who invests sustainably invests in energy generation that uses inexhaustible resources. Green investing is a form of sustainable investment with tax benefits in green funds recognized by the government.

Investing in green bonds
At WindShareFund, investors can invest profitably in high-quality German wind turbines with so-called ClimateBonds. These green or climate bonds have a base interest rate over a maximum period of 10 years, plus possible profit sharing at the end of the term.