Renewable Energy Investments

As our readers would know, looking to the future and planning ahead makes sound financial sense. Investments today can provide a benefit for generations to come.

Clean green energy offers significant opportunities for investment. Endorphin Wealth Management have an eye to the future when it comes to ensuring the best of both worlds for our clients and those who follow in their footsteps.

Why is Renewable Energy important?

The greenhouse effect of increased carbon dioxide (CO2) produced by human activity is causing temperatures to increase across the globe. This leads to the melting of polar caps, rising sea levels and more frequent storms and drought.

Most of the global CO2 emissions come from burning fossil fuels like gas and coal. Burning natural gas for electricity produces between 0.6 and 2 pounds of CO2 equivalent per kilowatt-hour, coal releases 1.4 to 3.6. On the other hand, solar is responsible for 0.07 to 0.2, wind for 0.02-0.04, hydroelectric for 0.1 to 0.5 and geothermal for only 0.1 to 0.2. (Source: 2011 IPCC Special Report on Renewable Energy Sources and Climate Change Mitigation)

Other benefits of Renewable Energy

The planet is not going to run out of wind, rain, sun or tidal movement so this source of energy is pretty much inexhaustible. It means not using up precious fossil fuels and working with nature to provide homes and businesses with clean, renewable energy.

It is not only kinder to the planet but from a public health perspective there is drastically less pollution and harmful emissions. Natural gas plants and coal manufacturing has been linked to a number of serious health problems from lung disease to cancer. Geothermal and biomass does produce some emissions but not on the scale of coal mining or gas plants. Wind and solar farms are much cleaner and along with hydrothermal systems that produce electricity have practically no emissions associated with the process at all.

Renewable energy brings economic benefits with wind farms and solar plants being more labour intensive. Manufacturing of turbines and jobs in solar installation are on the increase not to mention the logistics and transportation sector. Indirect economic benefits can be seen in local councils who gain with new income generated by taxes and payments from renewable energy project owners. Rural businesses benefit from renting out land to solar and wind farms or gain by producing the stock needed for biomass power plants.

Improvements in technology over time

There have been a number of innovations over the past few years including improved cooling technologies in thermal power plants in India, which powered by solar and wind energy, can produce by 2030 an 84% reduction in water withdrawal intensity. Compared to usage in 2014 it means a reduction of carbon emissions by 34% and a lower annual water consumption by 25% which is incredible considering the size of India and the demands the growing population makes on what is a precious commodity – clean water. (Source; Water Use in India’s Power Generation- Impact of Renewables and Improved Cooling Technologies 2030).

Solar panels, which were once bulky, inefficient and expensive, have also seen a number of advances in recent years. Scientists at MIT have developed a new solar energy device that converts sunlight into heat, and then back into light that is focused within the most efficient part of the spectrum for photovoltaic cells. This means it absorbs more energy than the photovoltaic cell alone, dramatically increasing the efficiency of the solar cell.

Countries at the forefront of renewables

According to the 2017 International Energy Agency’s (IEA) report, the top 3 countries paving the way at present are China, the USA and India. China has already more than passed its 2020 solar panel target and should exceed its wind target by 2019. The US comes in second – even though the current President has pulled out of the Paris Agreement – while India is overtaking the European Union, with their renewable capacity expecting to more than double by 2022.

A growing investment market

Here at Endorphin Wealth Management, we understand that the renewables market is one worth considering for investors. Not only is it a sector that is strong and producing good returns, it is also a fantastic ethical investment. There are a few companies on the market right now that are certainly worth keeping an eye on. Particularly those who are backed by some of the larger utility companies because they will have an eye to the future where renewables are concerned.

NextEra Energy Partners are looking to grow dividends by 12-15% through to 2022, and Brookfield Renewables are another company backed by the hydropower plants. Brookfield is aiming to grow the dividend currently standing at 5.6% yield (figures as of December 2017) with annualised total returns coming in at 12-15%.

There is a world of potential in renewable energy investments. Investing ethically and for future generations while providing additional income for the present, makes sense.

Comprehensive analytics and research

We invest a great deal of time and effort researching the best tax effective investment strategies for our clients. We have developed a number of systems to manage and track the marketplace.

The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals. We want, our clients to get on with enjoying their life rather than worrying about money.

For an obligation free conversation about your financial future, please contact us on 03 9603 0072 or at

Phillip Richards and Robert Rich
Endorphin Wealth Management

Phillip Richards is a qualified Financial Advisor with over ten years’ experience. Contact Phillip today to discuss how you can build your own wealth and plan to reach your retirement goals.

Robert Rich is a qualified Financial Advisor with over nine years of personal investment experience. Contact Robert today to discuss how you can build your own wealth and plan to reach your retirement goals.

This information is general in nature and does not take your personal situation into account.

Contact Us for quality financial advice so you can feel good about your future.