Understanding fuel cells and solar energy
Clean energy was one of the important agendas in the Paris climate agreement. Various nations signed the agreement. Fuel cells produce clean energy from a chemical reaction between anodes and cathodes. In contrast, solar energy produces energy from sunlight. After this historic agreement, the industries might change their focus. Different nations will try to enhance their exposure to the technology. As the scenario changes, companies operating in this sector may be lucrative for investors. The industry operates on a renewable source of energy. It can attract investment for better R&D (research and development).
Renewable versus non-renewable sources
We’re in a digital economy where a change in demand patterns is determined by technology. People want to move with technology. Technology requires power in order to run. This clearly illustrates the need for a clean and portable power supplier. In this case, the power supplier could be a fuel cell or solar energy. So, fuel cells and solar energy will be a form of energy in the future.
FuelCell Energy (FCEL), Plug Power (PLUG), and EnerSys (ENS) are some of the US-based companies that manufacture and operate fuel cells. SolarCity (SCTY) deals with solar energy. ETFs like the Guggenheim Solar ETF (TAN), the PowerShares WilderHill Clean Energy ETF (PBW), and the VanEck Vectors Global Alternate Energy ETF (GEX) invest in renewable energy.
In the next part of the series, we’ll analyze the moving averages and analysts’ estimates for these companies.