According to a new report, companies that invest more money in the research and development more efficient means of producing renewable energy, the better able the company is to satisfy consumers and drive growth. Additional growth is, and can be continued, through government subsidies and initiatives. Recently, there has been an increase in investments in the renewable energy field, especially in solar and wind energy. Companies such as First Solar and SolarCity prove that R&D drives both growth and greater profits.
Last week First Solar announced a partnership with Intermolecular to increase conversion efficiency. SolarCity has recently announced a 117 percent growth of the amount of energy the company installed in 2011 (72 MW). Early indications show that 2013 is expected to beat the company’s original projections.
The report concludes that if consumers continue to see the long-term benefits of renewable energy, green energy companies should expect to have a strong and stable position in the overall market. The report anticipates a strong macro trend towards companies focusing on renewable resources and “green” products. In addition, institutional funds are adding corporate responsibility, ethical investing and environmental concerns as priorities when screening for new investments. The report believes that this change in dynamic within the investment community will create a “mass exodus” of investment dollars from aggressive cost-cutting companies towards companies focused on ethical approaches to business, consumers and the environment.