A bright future: the best ways to invest in solar energy

Solar energy was long dismissed as unprofitable and unproven. But it has come of age. It is providing stiff competition to conventional energy sources and its ascendancy looks unstoppable, says Matthew Partridge.

Cover image

This year has seen many dramatic changes, but one milestone in particular stands out. For over two months, from early April to mid-June, coal power made no contribution to the national grid – the longest period since the 1880s. While this was partly due to the slump in energy prices, it shows that non-renewable sources of energy – coal in particular – are on their way out.

The renewable-energy sector is made up of multiple sources, such as wind and tidal power, but the biggest winner in recent years has been solar energy. In 2009 it accounted for 20,000 megawatts (MW) of global capacity; by the end of 2020 the figure is estimated to be 720,000MW – enough energy to power around 522 million homes. And the future for this energy source looks bright.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri