Why Warren Buffett Is Betting Billions on Renewable Energy

Renewable energy has been a hotly debated topic in Washington, DC during the past few years, but one person who isn't listening to the noise is Warren Buffett. Instead, he's putting billions of dollars to work buying wind and solar power plants and, this week, said there's another $15 billion ready to go.

Buffett isn't buying solar panel manufacturers or wind farm installers. Instead, he's buying power plants with 20-year power-purchase agreements and predictable cash flows, much like a bond. First Solar (NASDAQ: FSLR  ) and SunPower (NASDAQ: SPWR  ) have benefited from this, selling hundreds of megawatts of projects to Buffett, which they may do again in the future. 

How can you invest in wind and solar like Warren Buffett? Renewable energy yieldcos are starting to hit the market and are a good way to get exposure to these markets. NRG Energy launched NRG Yield (NYSE: NYLD  ) last year, and SunEdison (NYSE: SUNE  ) will launch a yieldco later this year. Solar specialist Travis Hoium covers more on Buffett's investments, and how you can invest in renewable energy in the video below.

Warren Buffett's biggest fear is about to come true
Warren Buffett just called this emerging technology a "real threat" to his biggest cash-cow. While Buffett shakes in his billionaire-boots, only a few investors are embracing this new market which experts say will be worth over $2 trillion. It won't be long before everyone on Wall Street wises up, that's why The Motley Fool is releasing this timely investor alert. Click here to learn more about what's keeping Buffett up at night and the one public company we're calling the "brains behind" the technology.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2994005, ~/Articles/ArticleHandler.aspx, 10/23/2014 3:58:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement