Investing in renewable energy5 trends that will shape the market by 2030

Time to read10 min.

updated at06/10/2026

CategoryRenewable energy investments

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The most important facts at a glance:

Renewable energies now cover more than half of the public net electricity generation in Germany and have also become a serious investment.
With the expiration of state subsidies, electricity marketing is increasingly decisive for earnings. Power Purchase Agreements (PPAs) are gaining in importance, but they are not a cure.
Hybridisation and battery storage decouple power generation from its marketing. This makes wind and solar farms more independent of weather and spot market prices.
Repowering rebuilds on proven sites and increases the performance of previous plants to an average of three times.
Electricity grids are becoming a bottleneck of the energy transition and are therefore finding their place as an independent investment option. They complement the generation side with even better plannable cash flows.
Following the 2024 reform, ELTIFs have established themselves as a central vehicle for retail investors. However, with the growing variety of products, it becomes more important to review the track record and quality of asset management.

Fifteen years ago, wind turbines and solar farms were symbols of a political promise, and today they supply the majority of public electricity in Germany. In 2025, the share of renewable energies in public net electricity generation was 57.1 percent.¹ Vision has become infrastructure.

At the same time, their reputation as an investmentis changing. Clean energy ETFs and thematic equity funds have long been part of the fixed inventory of many custody accounts, and now renewable energies are also moving into the neighbourhood of real estate and gold. They become recognised tangible assets, backed by a real asset that continuously produces electricity and delivers predictable cash flows.

The first funds prove this logic. klimaVest, for example, launched in 2020 as a German European Long-Term Investment Fund (ELTIF) for private investors and invested around 1.6 billion billion euros in investment capital in renewable energies in five years. We are proud of the track record: Each financial year since its inception, the fund ended up.²

And yet the asset class is young. The rules of the game according to which yields are generated in this world are still being formed. In this article, you will learn about the five trends that will shape the market by 2030 and what investors should be aware of today.

1. Why is renewable energy the future of energy supply?

Carbon dioxide – climate killer? The invisible molecule of CO₂ has become the symbol of an energy economy that no longer seems viable for the future. Scientists agree that the atmosphere warms up due to the increase in CO₂ concentration caused by fossil fuels such as oil, gas and coal.

On the other hand, renewable energies are largely free of such climate-impacting emissions. Your costs have been falling for years and are expected to continue to do so ³, making them increasingly attractive as investments.

Renewable energy generates clean energy - in the form of solar, wind and hydro power. And the best thing is that These energy sources are almost unlimited and do not cause any climate-damaging emissions. The radiant energy of the sun alone is about 5,000 times greater than the energy requirement of all people.⁴ German politics have also recognised the potential for a long time and have been promoting the expansion of corresponding plants with the Renewable Energies Act (EEG) since 2000.⁵

Investors can also benefit from this development, especially as renewable energy investments are no longer a niche product and have successfully established themselves on the market for sustainable investments. In 2023, global investments in renewable energy reached a new record value of over USD 620 billion¹.

The market for renewable energy investments is growing steadily – this makes it all the more important, among other things, to have a good overview of it for your own investment decision.

2. What types of renewable energy are there - and how do they work?

The effects of global warming are becoming increasingly noticeable: Droughts, flooding, crop losses and species extinction have increased steadily in recent years.⁶

Fossil fuels such as lignite, hard coal, petroleum and natural gas have stored solar energy in the earth for millions of years. Since the beginning of industrialisation, they have been burned at a tremendous pace, releasing carbon dioxide (CO₂) and other greenhouse gases.

As a result, the planet’s natural greenhouse effect has become out of balance. With the Paris climate goals, the United Nations has set out to reduce emissions of climate-impacting gases and to switch from fossil to “clean” alternatives to energy production.

Nuclear power is not an alternative. Although it may appear to be clean (as it is carbon-free), it poses constant dangers and unresolved problems. The fuels and waste required for energy production are highly radioactive, and disasters such as Chernobyl or Fukushima reactor accidents have highlighted the risk of this technology. In addition, there is still no permanent disposal solution for highly radioactive nuclear waste.

Renewable energy does not require fossil fuels and generates no emissions that are harmful to the climate. Their energy sources - sun, wind, water, biomass and geothermal heat - are almost unlimited. Within 90 minutes, the Earth receives as much solar radiation energy as humankind needs in a whole year.⁴ Modern plants for the use of renewable energies are durable, reliable and do not generate toxic waste products.

There are many ways to generate electricity and heat in an environmentally friendly way. Let’s take a closer look.

Solar power: photovoltaics

Contrary to expectations, solar panels produce energy not only when the sun is shining, but also when it is cloudy but bright. In a photovoltaic system, small solar cells generate electricity. They consist of crystalline silicon or are based on thin-film technologies.

Solar energy uses the so-called “photovoltaic effect”: meaning that incident sunlight turns into electricity. Several solar cells together form a solar module and several solar modules are interconnected in a photovoltaic system.

The efficiency of this technology has continued to increase in recent decades with Industrially manufactured modules made of crystalline silicon now achieve an efficiency of over 20 percent. Special concentrator solar cells made from stacked semiconductor layers even achieve peak efficiencies of up to 47.1 percent.³ In addition, the prices for photovoltaic modules have fallen significantly over the last ten years. In 2023, electricity generation from photovoltaics also contributed about 12.1 percent to net electricity production in Germany.⁵

How much sun can be used depends on the local weather conditions, altitude, angle of incidence and latitude. In sunny regions such as Southern Europe, photovoltaics is already the most cost-effective method of generating electricity.

Wind: gives wings

A 3 MW wind turbine produces electricity for around 2,000 households in a year.⁷ Wind power is also based on the energy that the sun sends to us. Because depending on how the sun’s rays hit the Earth, differences in temperature and pressure are created, which the air balances out - and that gives the wind wings!

This flow force causes the rotor blades of wind turbines to turn, e.g. on land (onshore) with wind farms or small systems on private land, or on the sea (offshore).

Wind energy is responsible for the lion’s share of renewable electricity supply. In 2023, it held a share of 31.1 percent of German electricity production.⁵ Internationally, the German wind industry is one of the world’s market and technology leaders.

But there is still a lot of untapped potential: By replacing older plants with more modern ones ("repowering") and expanding offshore parks, it would be possible to generate even more energy from wind.

Bioenergy and combined heat and power plants (CHP)

Everything that is generated in agriculture and forestry can be used as biomass: the energy from the sun is stored in slurry, organic waste, grass cuttings, straw and leftover feed. Some raw materials such as corn and wood are also sometimes part of the mix, but could also be used for their material instead of their thermal capabilities. Any biomass can be converted into electricity, heat or fuel.

Microorganisms break them down into biogas in the absence of oxygen. Biogas is considered CO₂-neutral as it only produces as much carbon dioxide as the plants had assimilated during their growth phase.

From an ecological point of view, biogas is nevertheless associated with uncertainties. The production of biogas carries risks due to the uncontrolled escape of the greenhouse gases methane and nitrous oxide, and significant indirect emissions can also be caused by the reuse of land.⁸ ⁹ When investing in biogas, it is therefore important to ensure that the plants are well implemented.

Large fossil fuel power plants often use only one of two forms of energy: electricity (power) or thermal energy (heat). Many release the heat into the environment unused, especially into rivers where the heat warms up the local ecosystem.

In most cases, such conventional power plants only achieve an efficiency of approx. 30 percent. All of this was and is wasteful because combined heat and power (CHP) which uses electricity and heat, has been around for a long time.

Combined heat and power plants (CHPs) not only produce heat, but also valuable electricity as a “waste product”. With an efficiency of up to 90 percent, they are very efficient. They are particularly environmentally friendly if they are not operated using fossil gas or crude oil, but with renewable fuels from biomass.

Water: hydroelectric power

Even the ancient Egyptians operated machines with the power of water. Until the 19th century, sawmills, paper mills and grain mills were powered by streams and rivers, and today this potential for decentralised energy production from small power plants is being revived.

The kinetic energy of the water can also be converted into electricity on a larger scale. In Germany, for example, the Walchensee power plant has been using the current from the Isar river for electricity production since 1870.

Pumped storage power plants in particular play an important role in the energy transition because they serve as storage. If there is too much power in the grid, water is pumped from the lower basin to the upper basin. Later, when more energy is needed again, the downward flow can be converted back into electricity. This means that electricity can be generated and stored regardless of the weather and time of day.

Geothermal and environmental heat: Heat pumps

The volcanic island of Iceland benefits from geothermal energy: Two-thirds of the energy supply here comes from geothermal heat.¹⁰ But we also have a lot of energy stored beneath the surface of the earth.

Geothermal plants can convert them into electricity, heat and cold. Simmering deep within the earth at temperatures of up to 6,000°C, the heat radiates upwards and also heats layers and water reservoirs, which we can reach by pumping. The deeper you drill, the warmer it gets: approximately 3°C per 100 metres depth. As geothermal energy doesn't need good weather, wind or daylight, it is popular as an independent source of energy.

Heat pumps can also use the ambient air to provide heating or cooling. In the energy transition, they serve as a welcome consumer of temporarily surplus (renewable) energy in the grid.

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3. What are the benefits of investing in renewable energy?

Renewable energy is a future-proof asset class. Numerous investments are available here that are independent of the stock market and broadly diversified. Investors have the opportunity for future-oriented investments. Ready-to-use investments with stable cash flows can offer risk-adjusted returns, although, as with all investments, fluctuations in value are possible.

There are many benefits to investing in renewables. On the one hand, you are actively helping to combat climate change, because your investment supports future-proof technologies that cause hardly any CO₂ emissions.

In this way, you can help ensure that our grandchildren can still live and do business. On the other hand, investments in operational tangible assets with long-term purchase agreements are relatively stable and can generate predictable cash flows.

Some investors shy away from investing in renewable energies because they are afraid they don't understand the technology enough. But that would mean being able to build a car to be able to invest in an automotive manufacturer, or penetrating an oil extraction plant to invest money with an energy supplier.

None of this has been necessary so far – and the operation of renewable energies is not rocket science, as the previous section has shown. In addition, the technology has developed significantly and now functions reliably and cost-effectively.

Money has power. Investors can actively contribute to the energy transition with investments in ready-to-use energy plants and at the same time benefit from the income from electricity sales.

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4. Why does the energy transition need private capital?

To achieve a long-term and sustainable energy transition, it is not only possible to think in terms of ecological measures. Rather, there must also be a comprehensive economic transformation - and the electricity and energy industry is a central, if not the central element. This is because government measures and funding programmes are subject to real limits: Bureaucratic processes and the introduction of new bills are often slow, and public funding is limited. Meanwhile, private investors collectively have a large amount of capital that can move a lot.

There is immense untapped potential here to transform the European energy infrastructure and expand the expansion of renewable energy plants in a targeted manner - for example with the help of the financial vehicle ELTIF (European Long-Term Investment Fund): Fixed capital can be invested directly in wind or solar power plants or other tangible assets using such investment funds.

This benefits both investors and the entire real economy. This is because rising demand ensures stability, which is reflected in predictable returns. Private investors can thus actively contribute to a European energy transition and benefit economically from it themselves.

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A man in a white shirt leaning on a structured, weathered wall with a smile.

“We will continue to miss our climate targets if we do not expand renewable energies with significant momentum, overcome bureaucratic hurdles and completely remove capital from fossil fuels.”

Tobia Huzarski

Senior Investment Manager Infrastructure Investments, Commerz Real

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5. What opportunities does the renewable energy market offer?

Initially ridiculed and fought against, renewable energy is now no longer niche. In 2019 alone, 301.9 billion euros¹¹ went into “Renewable Energies” worldwide; in Germany, this was 10.5 billion euros.

Despite the strong growth of recent years, the market is far from oversaturated, and is expected to continue to grow. According to a study by McKinsey, achieving the international climate goals of Paris requires investments of at least one trillion euros per year in Europe.¹²

The structural need for the energy transition creates long-term market opportunities. Political developments in recent years have once again clearly demonstrated the importance of independence from “old” technologies on the one hand, and from external energy supplies on the other hand - which is closely related to this.

Ready-to-use plants with long-term off-take agreements offer structural stability through predictable revenues. However, these investments are also subject to market risks: Changes in interest rates affect financing costs and valuations, raw material and construction costs can fluctuate, and regulatory changes affect framework conditions.

While the renewable energy market is not new, it is now finally broad enough to allow many more private investors to participate in its growth than before.

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6. What returns are realistic for renewable energies?

In particular, electricity from solar energy, which is generated with the help of photovoltaics, has recently reached a new record low in terms of its production costs. This is mainly due to increased demand, which in turn is driving the expansion of renewable energies. On the one hand, this increases security of supply, and on the other hand, technologies such as wind turbines or photovoltaic systems are becoming increasingly more accessible.

However, certain irregularities, which can also cause fluctuations in returns, are hard to avoid with these technologies: If there is no sunlight, solar energy cannot be used. If there is no wind, the wind turbine cannot produce electricity.

Above all, the combination of different technologies, primarily wind and solar power, has gained momentum: So-called hybridisation ensures much greater stability in electricity production, which ultimately also affects return expectations. This allows individual fluctuations to be absorbed and compensated for.

In addition, the form of the off-take agreements also plays a role: Long-term purchase agreements such as power purchase agreements (PPAs) usually provide a secure source of income over several years, which also has a positive impact on investors’ return expectations.

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7. Investments in renewable energy: What are your options?

Investments in renewable energies, for example, flow into the production and operation of power plants from renewable energy sources. There are many possible forms of investment, five of which are presented here: equities, thematic funds, best-in-class funds, investments and savings deposits.

Equities

If you acquire a company's unit certificates – e.g. a wind turbine manufacturer – this increases its rating. You make a profit if the company pays dividends or if you sell the share at a higher price.

The direct impact of such an investment is relatively small: As a rule, the purchase of a share does not directly transfer money to the real economy, but rather to the previous holder of the unit certificate. A higher rating may make it easier for the company to obtain loans for growth. At the same time, you are missing out on the opportunity to make your portfolio independent of the stock market with a new asset class.

Best-in-class

When you invest using the best-in-class approach, you buy “best-in-class” shares in different sectors. In each industry, the companies are identified that are most likely to take into account so-called ESG criteria, i.e. those that have dealt with the topics of environment, social issues and governance.

But they can also be operators of particularly efficient fossil-fuelled power plants. They strive for sustainable improvements in their field, but overall they are not pioneers in alternative energy. In the evaluation, they receive positive points for environmental management or efficiency improvements in resource and energy consumption, for example.

If you pursue this strategy, you could rely on the best-in-class renewables, but this tends to have a low spread and therefore a higher risk.

Thematic funds for renewable energies

With sustainable thematic funds, your money flows into a wider selection of equities or bonds from certain sectors. Some thematic funds or environmental funds specialise in renewable energies. It is important to: Check whether the fund actually invests in ready-to-use renewable energy investments or primarily holds shares in energy companies.

Renewable energy funds can be structured differently: as closed or open-ended funds, as climate funds with a broad technology mix or as specialised thematic funds for solar, wind or bioenergy. The form of securities varies, for example, there are closed-end funds or profit participation certificates.

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General views

Fund for renewable energies

For more details on the different types of funds, how they work and what to look out for when selecting, please read our detailed guide to renewable energy funds.

Compare funds and find the right type

Rows of solar panels on green grass, from a bird’s-eye view.

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Investments

The opportunities to participate directly in renewable energy plants and companies are diverse and are no longer reserved for institutional investors. People often join forces on the ground to jointly finance citizen energy plants (CEP): a biogas plant in the village, solar panels on the roof of the local kindergarten or a rediscovered hydropower plant by the stream. Larger projects usually receive cross-regional support, e.g. via crowdinvesting platforms on the internet.

All these investments can be roughly broken down by company form or contract type, each of which entails different co-determination options and liability risks.

eG: Here, you are a member of a cooperative. You purchase cooperative shares and co-finance renewable power plants. No matter how much you invest: every member of the cooperative has exactly one vote, which is why this form of organisation is regarded as particularly citizen-oriented and democratic. Depositors receive a proportionate share of the profits. In the agricultural sector, for example, investors invest in local biogas plants and found cooperatives for this purpose.
GmbH & Co. KG: With this entity, you are a limited partner. Your liability is generally only tied to your contribution – not your private assets – and you therefore have little say.
GbR: In a company under civil law, each shareholder is liable not only with his/her contribution, but also with his/her private assets. You should only invest in this form if the project is small and manageable – e.g. neighbours jointly co-financing a neighbour’s solar power system. Every shareholder has the same right to have a say here.
Loans: You can participate in citizen energy systems indirectly by lending money to the company behind it – regardless of its legal form. Types of loans typically include: bearer bonds, bonds or subordinated loans. It is also possible to lose all your money here as there are no co-determination rights.

The benefit of a direct investment is that its performance is largely independent of stock market performance. The Renewable Energies Act (EEG) provides a certain degree of planning security.

The disadvantage is that the investment capital is tied up for several years. Due to possible miscalculations, there is the business risk of a total loss.

Savings deposits

Some banks offer savings products that finance renewable energies. Here, you invest your money with the bank for a fixed period (often five or ten years) at a fixed interest rate. This means that the bank invests in renewable energy projects, mostly within the region, e.g. as loans to citizen energy plants.

Savings deposits with names such as “climate savings certificates” offer a relatively high level of security due to the banks’ statutory deposit guarantee; a total loss is usually excluded here. However, interest rates are comparatively low, funds are tied up for a long time and there are no co-determination rights.

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8. What should I look out for when investing in renewable energy?

By investing in renewable energy, you can contribute to climate change mitigation by helping to reduce greenhouse gas emissions and conserve fossil resources. But what is the best way to do this and what needs to be taken into account when selecting products? Some questions worth finding the answers to can be found below.

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Check-lists

What is your investment objective?
how much money do you want to invest, what time horizon can you envisage tying up your capital for, how do you feel about risk, what values are important to you and what compromises are you prepared to make?
While one person wants to support 100% renewable energy plants in Europe, another can imagine investing primarily in the best-in-class in the solar industry. Whereas one person needs flexible access to their money, another can have it tied up for longer.

Important difference: Ready-to-operate systems vs. project developments
Plants that are ready for operation already have an operating history and generate predictable cash flows through the sale of electricity. Project developments involve higher risks (construction, approval and financing risks), but potentially offer higher returns. Conservative strategies for investment primarily focus on ready-to-use assets with stable income streams.

Which investments are right for you?
This article has provided you with an overview of various forms of investment. Dive deeper by looking at specific products and asking some questions: Are co-determination rights important to me, or not really? In the event of a total loss, is only your investment “gone” or is there a liability or premium obligation for which your other private assets would also be at risk?
How flexible is your investment, how long is the money tied up for, when could you exit early? How much experience and expertise does the provider have with green investments and renewable energy projects?

How do you deal with risks?
The following applies to every asset decision: diversification reduces risk. It is therefore important to not invest all your money in one type of investment (e.g. holdings only) or a subject area (e.g. wind only).
If, for example, you already have a direct holding in a solar plant, a thematic fund that includes all types of renewable energies could diversify your portfolio.

What transparency does your investment offer?
Brochures, reports and events will provide information on whether an investment has an impact on sustainability and how it performs financially. Various providers are more or less transparent with their investors. As an investor, you can make your claim to transparency clear. Read publications about the impact of your investments and request specific reports on the achievement of sustainability goals.

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9. How attractive are renewable energies as an asset class?

As a still young asset class, renewable energies enable investors to access new, innovative forms of investment - whether in the form of equities or in the form of tangible assets such as wind or solar power plants.

Investments in tangible assets in the renewable energy sector in particular have immense development potential and high value stability. This is due to the continuously increasing demand for the expansion of renewable energies, which are now an integral part of the German and European energy industry.

In the renewable energies asset class, innovation and growth potential meet stability and long-term viability - a synergy that makes renewable energies one of the most promising asset classes.

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10. How does investing in renewable energy contribute to the energy transition?

The age of fossil fuels is coming to an end. If we want to stop warming the atmosphere through CO₂ emissions, coal, gas and oil must remain in the earth wherever possible. But humanity will continue to need electricity and heat in the future.

This is why it is indispensable to expand renewable energies – and you can actively contribute to this with your investment. And the best thing is that the power of the sun can also bathe your wealth portfolio in bright light. The structural need for the energy transition creates long-term market opportunities. Ready-to-operate plants with long-term purchase agreements (e.g. power purchase agreements) offer planning security through contractually secured revenues - largely independent of fluctuating political subsidies.

This article provides you with an overview of investments in renewables. We recommend our contributions to renewable energy funds, wind power investment funds and solar funds to shed more light on different forms of investment. Good luck with your investments!

Good luck with your investments!

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Frequently asked questiions

This depends heavily on the type of investment chosen. You can start with just a few hundred euros for equities or ETFs. Thematic funds for renewable energies often have minimum investment amounts from EUR 500-1,000. Direct investments or closed-end funds usually require higher amounts from EUR 5,000 to 10,000. It is important to: Only invest money that you can do without in the long term, as many forms of investment have holding periods of several years.

For investments in renewable energies, a medium to long-term investment horizon of at least 5-10 years is recommended. Plants that are ready for operation generate their income through long-term electricity purchase agreements, the full benefits of which only unfold over several years. With direct investments, capital commitments of 10-20 years are common, while listed equities and ETFs are more flexible to trade.

Yes, investments in ready-to-use assets with long-term off-take agreements can be of particular interest to defensive investors. These generate predictable cash flows through contractually hedged electricity sales and are largely independent of stock market fluctuations. Diversification across different technologies (solar, wind) and locations is important in order to minimise weather risks.

Investors in the fund vehicle resident in Germany (hereinafter referred to as tax residents) are subject to the non-transparent taxation regime in accordance with Sections 16 to 24 of the German Investment Tax Act (Investmentsteuergesetz: InvStG). According to the Act, investors are generally subject to taxation in Germany on the investment income derived from the units in the fund vehicle. Investment income includes:

Distributions of the fund vehicle;
Advance lump sums in relation to units in the fund vehicle;
Gains on the disposal of units in the fund vehicle.

Under certain conditions, a flat-rate exemption (partial exemption) may be possible for certain investment income from the units in the fund vehicle. Due to the planned structuring of the fund, no partial exemption is currently expected. However, partial exemption (equity exemption) cannot be definitively ruled out. The possibility of claiming such a partial exemption will be reviewed on an ongoing basis.

Private investors subject to income tax:

For the investor group of natural persons in focus here, the following consequences arise:

For private investors subject to income tax, investment income is regarded as income from capital assets.
Subject to the application of a partial exemption from investment income (see above), the investment income is fully taxable.
The savings allowance (€1,000 or €2,000 for jointly arranged spouses and partners) can be taken into account for tax purposes.
The taxable capital income is generally subject to a special income tax rate of 25 percent (plus a solidarity surcharge of 5.5 percent of the income tax incurred as well as any church tax on income tax).
Tax is generally withheld as withholding tax from the paying office (deductible tax).

Income taxable corporate investors:

In principle, there is also income from capital assets, but insofar as the units in the fund vehicle are held as business assets for tax purposes, the investment income from units in the fund vehicle is reclassified as business income.
Subject to the application of a partial exemption, which cannot be ruled out (see above), the investment income is also fully taxable.
Investment income is subject to general taxation at a progressive rate of up to 45 percent (likewise plus solidarity surcharge and church tax, if applicable).
If the units in the fund vehicle are held in a German industrial or commercial enterprise, the investment income is also subject to trade tax. A reduction in trade tax on income from units in the fund vehicle is possible under certain conditions.
Any resulting trade tax burden can be offset against the income tax liability on a flat-rate basis.

Other investors:

In case of doubt, there are specific tax assessments for another group of investors (institutional investors), each of which should be subjected to individual considerations at investor level.

Foreign investors:

No generally valid statements can be made for investors resident abroad. Investors resident abroad should inform themselves in detail about the respective tax consequences by consulting a tax adviser before acquiring units.

Pay attention to the following warning signs: Unrealistically high return promises (over 8-10% p.a. without corresponding risks), missing or incomplete product information sheets, pressure to conclude quickly, no clear indication of risks. Reputable providers are registered with BaFin, offer detailed documentation, name specific projects with locations and have verifiable experience.

Modern plants have high availability rates of 95-98% and are typically fully insured against damage caused by storms, fire or technical failures. For funds with multiple investments in different regions, the risk is diversified through diversification. Manufacturers’ maintenance contracts and warranties ensure quick repairs. In the event of a total loss, the insurance will take effect.

This depends heavily on the type of investment. You can sell equities and ETFs on a daily basis, but you must accept possible price losses. Open-ended funds often allow daily or monthly redemption at the net asset value. Closed-end funds and direct investments have fixed maturities of 10-20 years with limited exit options.

Performance is made up of several components: For equities and funds from price development plus dividends or distributions. In the case of direct investments from the annual distributions of operating income plus any appreciation of the investment. Key figures include: total return, dividend yield and, for tangible assets, the development of electricity yields.

The geographical location is decisive for profitability: Solar plants in southern Europe have around 30-50 percent higher yields than in northern Germany, while northern Germany and offshore locations are ideal for wind power. Good investments diversify across different locations in order to spread weather risks. Europe offers attractive framework conditions thanks to stable legal systems and developed energy markets.

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¹REN21 (2024): Renewables 2024 Global Status Report. Global Trends in Investment and Finance. https://www.ren21.net/gsr-2024/modules/energy_supply/01_global_trends/03_investment_and_finance/

²Calculated using the BVI method (excluding initial charge, distribution reinvested immediately). Past performance is not indicative of future returns.

³The peak efficiency of concentrator solar cells made from stacked semiconductor layers can reach up to 47.1%. https://www.ingenieur.de/technik/fachbereiche/energie/neuer-solarzellentyp-bricht-rekorde-beim-wirkungsgrad/

⁴Agentur für Erneuerbare Energien: Erneuerbare Energien. https://www.unendlich-viel-energie.de/erneuerbare-energie

⁵German Renewable Energy Agency: Renewable Energy. https://www.unendlich-viel-energie.de/erneuerbare-energie

⁶ European Commission: Impacts of Climate Change. https://climate.ec.europa.eu/climate-change/consequences-climate-change_de

⁷IG Windkraft Austria: Wind Power by the Numbers. https://windfakten.at/?mdoc_id=1030006

⁸Paolini, V. et al. (2018): Environmental impact of biogas: A short review of current knowledge. Journal of Environmental Science and Health, Part A, 53(10), 899-906. https://doi.org/10.1080/10934529.2018.1459076

⁹Tamburini, E., Gaglio, M., Castaldelli, G., & Fano, E. A. (2020): Is Bioenergy Truly Sustainable When Land-Use-Change (LUC) Emissions Are Accounted for? The Case-Study of Biogas from Agricultural Biomass in Emilia-Romagna Region, Italy. Sustainability, 12(8), 3260. https://doi.org/10.3390/su12083260

¹⁰NZZ: Geothermie in Island. https://www.nzz.ch/wirtschaft/allzu-aggressiver-umgang-mit-reserven-geht-islands-geothermie-der-dampf-aus-ld.147976

¹¹Frankfurt School-UNEP Centre/BNEF (2020): Global Trends in Renewable Energy Investment 2020. https://www.solarserver.de/2020/06/11/investitionen-in-erneuerbare-energien-2019-weltweit-auf-rekordniveau/

¹²McKinsey & Company: How the European Union could achieve net-zero emissions at net-zero cost. https://www.mckinsey.com/capabilities/sustainability/our-insights/how-the-european-union-could-achieve-net-zero-emissions-at-net-zero-cost

Investing in renewable energy5 trends that will shape the market by 2030

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Contents

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The most important facts at a glance:

1. Why is renewable energy the future of energy supply?

2. What types of renewable energy are there - and how do they work?

Solar power: photovoltaics

Wind: gives wings

Bioenergy and combined heat and power plants (CHP)

Water: hydroelectric power

Geothermal and environmental heat: Heat pumps

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3. What are the benefits of investing in renewable energy?

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4. Why does the energy transition need private capital?

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5. What opportunities does the renewable energy market offer?

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6. What returns are realistic for renewable energies?

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7. Investments in renewable energy: What are your options?

Equities

Best-in-class

Thematic funds for renewable energies

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Fund for renewable energies

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Investments

Savings deposits

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8. What should I look out for when investing in renewable energy?

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Important risk information for investments in renewable energies

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Check-lists

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9. How attractive are renewable energies as an asset class?

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10. How does investing in renewable energy contribute to the energy transition?

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Frequently asked questiions

How much money should I at least invest in renewable energies?

How long should my investment horizon be in renewable energies?

Are renewable energies also suitable for defensive investors?

What tax aspects do I need to consider?

How do I recognise legitimate offers from bad ones?

What happens to my investment if an asset fails?

Can I terminate my investment early?

How will the performance of my investment be measured?

What role does the geographical location of the plants play?

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Investing in renewable energy5 trends that will shape the market by 2030

Contents

2. What types of renewable energy are there - and how do they work?

Solar power: photovoltaics

Wind: gives wings

Bioenergy and combined heat and power plants (CHP)

Water: hydroelectric power

Geothermal and environmental heat: Heat pumps

3. What are the benefits of investing in renewable energy?

4. Why does the energy transition need private capital?

5. What opportunities does the renewable energy market offer?

6. What returns are realistic for renewable energies?

7. Investments in renewable energy: What are your options?

Equities

Best-in-class

Thematic funds for renewable energies

Fund for renewable energies

Investments

Savings deposits

8. What should I look out for when investing in renewable energy?

Important risk information for investments in renewable energies

Check-lists

9. How attractive are renewable energies as an asset class?

10. How does investing in renewable energy contribute to the energy transition?

Frequently asked questiions

How much money should I at least invest in renewable energies?

How long should my investment horizon be in renewable energies?