Guest Post

Renewable energies are becoming increasingly viable as investment opportunities, particularly for large scale investments. However, although renewables remain in vogue, this doesn’t necessarily mean that they’re solid investments. So, with this in mind, is solar the best investment choice for 2017?

Reasons to Invest in Solar

Now the price of renewables-generated electricity is falling, they’re pulling the rug out from under fossil fuels, pricing them out of the market. The cost of solar power is dropping by around 10% per year, which means that, if the current rate continues, the cost of renewables-generated electricity will fall significantly below the price of electricity from burning any kind of fossil fuels within a decade. So, with this in mind, is 2017 the best investment choice for 2017?

Last year, the Financial Times noted that six major renewable investment funds yielded between 5.5% and 7% for investors. These are certainly attractive returns, which have unsurprisingly seen a further sharp growth in renewable generation.

This growth shows no signs of slowing, too. After all, the growth we’re witnessing is long term. In 2004, it was predicted that the solar energy market would grow by 1 GW per year by 2010. But, by 2010, this figures was exceeded 17 times over. In 2015, it was exceeded 58 times over, and in 2016, it was forecast to be 68 times over. The use of solar is on an exponential rise, with no signs of slowing.

It’s easy to see why, too. Although building a solar farm requires a significant initial investment, the price of electricity then stays low indefinitely, with the sun continuing to shine on solar cells free of charge. This is a marked difference with fossil fuels, which require a large upfront payment for power plant construction. But, with non-renewables, this is followed by a continually large outlay for extraction, transportation and fuel burning.

As a result, of all this, if you’re looking to invest in 2017, solar is a solid choice. But, does this make it the best choice? Let’s also analyse some more traditional investment.

Stocks and Shares

Stocks and shares have been a popular form of investment for decades, and it’s easy to see why. However, 2017 could be a particularly good year for investments in stocks thanks to the election of Donald Trump as America’s 45^th President.

Ever since the election result was announced, American stock markets have rallied due to Trump’s business-first approach.

As you would expect, some businesses have benefited more than others. So, if you’re looking to invest in stocks and shares in 2017, then it’s worth looking at sectors such as oil and pharma. With the appointment of Rex Tillerson as Secretary of State, many believe that the former Exxon Mobil chief will be overtly pro-business and pro-Russia, with his links to oil likely to lead to big gains in that sector.

Forex

Finally, big political changes mean that we could see a number of opportunities in the forex market. Again, Trump’s presidency is likely to be key here, as is Britain’s decision to leave the EU.

2017 will likely see Britain formally trigger Article 50, which begins the process of leaving the EU. From here, we’re likely to see two years of incredibly tough negotiations. As such, expect great amounts of market volatility, which will create ample opportunities for forex traders. You can learn how to take advantage of these opportunities through companies such as ETX Capital.

Due to high market volatility, forex looks like it could also be a good trading option for 2017.

To conclude, solar power looks like a great investment choice for 2017. However, it isn’t your only option, so take a look at stocks and shares and forex trading, too.

About the author: Ben Barlow is a freelance finance writer focusing on stocks and shares, forex and ISAs but also topics such as technology, green issues and tourism. After studying business at Lancaster University, Ben worked at a number of financial institutions in London and New York and is now following his passion for writing. You can contact the writer at benbhg1@gmail.com .