The non-fossils energy sector continues to enjoy robust growth with wind and solar leading the way in the U.S. The need to reduce carbon emissions amid worries about climate change and global warming is the catalyst behind the strong demand for non-fossil energy sources.
Non-Fossils Energy Outlook
Wind energy has more than doubled over the past decade in the U.S. Solar production, on the other hand, has increased ten-fold over the past eight years. Last year alone, renewable energy outpaced coal by providing 23% of the U.S power generation compared to coal’s 20%.
Wind and solar power installations are on course to exceed 20GW in 2020 compared to an average installation rate of 10.5GW per year since 2010. The S&P Global Market Intelligence projects that nearly 36GW of wind and solar capacity will be added across the U.S by 2021, affirming the strong demand for non-fossils energy.
Amid the industry’s overall growth, a number of companies continue to provide investors with attractive investment opportunities around non-fossils energy.
Non Fossils Stock to Watch
NextEra Energy Inc. (NYSE: NEE), which owns and operates wind and solar power generating assets, continues to offer exciting exposure to non-fossils energy. The company owns 5.33 giga-watts of renewable energy assets and enjoys financial strength backed by a large base of renewable energy projects. The stock boasts of a 4.1% payout yield, with the company planning to boost its dividend yield 12% to 15% annually.
Canadian Solar is a heavyweight when it comes to non-fossils energy in North America boasting of 13 gig watts solar module manufacturing capacity. The company can build panels that can power 2.5 million homes every year.
Canadian Solar Inc. (NASDAQ: CSIQ) is one of the few companies building and selling large solar projects from which it generates most of its earnings. It currently has a pipeline of 15.7 giga-watts of new projects with the business expected to generate billions of dollars in future revenues.
According to the U.S Energy Information Administration, solar and wind energy will account for three-quarters of new electricity generation in 2020 in the U.S. Likewise, this is an investment area likely to generate significant value for investors many years to come.
