5 Reasons to Invest in Renewable Energy Stocks
Renewable energy sources provide a very intuitive way to fulfill the world's energy needs. While fossil fuels may deplete sooner or later, renewable energy sources are there forever. Yet, higher renewable energy costs and uneven availability have restricted the profits and growth of renewable energy companies to some extent. This is changing fast. Here are five reasons why investing in renewable energy stocks makes eminent sense.
Several factors are contributing to the rapid growth in the use of renewable energy. First, the costs of renewable power generation have fallen significantly over the years. What's more, the costs continue to fall even now. For example, between 2010 and 2020, the global weighted average levelized cost of electricity of new utility-scale solar projects -- a metric used to compare the economic competitiveness of power generation by source -- fell by 85%, from $0.381 per kilowatt-hour (kWh) to $0.057/kWh. Compared to 2019, this cost fell by 7% in 2020. Similarly, the average cost of onshore wind generation fell 56% in the last decade.
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Source Fool.com
