Green energy stocks are an investment which will always have a high speculative factor, at least until energy sources become firmly established as the main source of energy production in the developed world. Investments in companies which rely on government subsidy to be able to remain solvent in the early days of operation are obviously going to involve a high degree of risk, but when the government is suffering reduced revenues due to the economic depression they are precarious in the extreme. Nevertheless, some of these businesses will survive and go on to become highly profitable in time.

There are many different types of business which are seeking to profit from renewable energy. These include many of the established household names from the fossil fuel industry, who are redirecting some of their profits into the development of new technology. Investments in these businesses are obviously going to take significant capital, as they are large and long established corporations which attract significant investment from institutions. You will not be guaranteed to profit, but you will be receiving dividends from the conventional fuel industry, while at the same time being in a position to profit from renewable energy in the future.

If you have less money to invest, you can try to find companies which are potentially he growth stocks. This will obviously involve a far greater degree of risk, but you will also have a greater potential for reward. Try to find companies which are on the cutting edge of technological development, especially those which are improving the technology which is used in solar panels and wind turbines. These developments will have extreme commercial potential, once it is realized how much money other businesses can save by using the enhanced technology. It is possible to reduce risk by spreading your investment.

The investment in green energy stocks needs to be seen as purely speculative, and cannot form any part of a pension fund or any other investment on which your future could depend. If you are looking to invest in a more solid proposition, the best best is probably to look at one of the mutual funds which has been created purely to concentrate on green companies. This will be a popular investment in the coming years, meaning that the funds are likely to retain their value. Make sure you are investing for commercial as well as ethical reasons, and that your portfolio contains some high potential growth stocks.

Mutual funds are a useful form of investment for several reasons. They can spread risk, while still giving you the freedom to buy and sell whenever you want to. You can also buy into funds with a relatively small investment, and keep investing consistently over the years. Mutual funds can also be included in a retirement fund, which can keep any gains free of tax as long as the money is retained in the investment until you reach retirement. There is no reason why green energy should not form an important part of your retirement portfolio.

If you want to pick and choose your own green energy stocks, you will need to keep up to date with both financial and energy industry publications. This is now easier to do than ever before, thanks to the ease with which information can be shared over the Internet. It is always advisable to have a real time feed of stock prices into your own home, especially if you are not simply buying to hold for the long term. Specialist industry websites can help you to understand the fundamentals of green energy stocks.