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California Emerges As A Champion For Renewables

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California Emerges As A Champion For Renewables

Renewable energy stocks have been a popular choice for investors this year as a growing interest in ‘going green' across the United States has spurred on demand for alternative energy sources. However, a new bill signed into law in California on Wednesday may set the tone for a new era in which renewables are not only of interest, but mandatory.

Renewables Bill

On Wednesday, California Governor Jerry Brown signed a bill into law which requires the state to produce half of its electricity through renewable means by 2030. The bill also called for increased efficiency, requiring buildings within the state to double their energy efficiency during the same 15 years. The bill was cheered by environmentalists as well as renewable firms, who hope other states will follow California's example.

Riding The Renewable Wave

Investors who are hoping to profit from California's latest effort to cut down on its carbon footprint are looking to First Solar Inc. (NASDAQ: FSLR) and NextEra Energy Inc.(NYSE: NEE), which have been responsible for much of the state's solar capacity over the past few years. Others are putting their faith in big name electric companies like PG&E Corporation (NYSE: PCG), which have already begun to work on increasing their renewable energy capacity.

For those looking further afield, there is Trina Solar Limited (NYSE: TSL), which designs, operates and sells solar power projects across the world in places like China, the UK and India. While California may be considered a green pioneer, the trend to increase reliance on renewables is global with several nations with historically poor environmental standards working to reform.

 

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