Powering the Future: The Green Energy Boom of 2020
As the world increasingly embraced sustainability in 2020, green energy emerged as a key investment theme, alongside the burgeoning electric vehicle sector. This shift towards renewable energy sources presented another golden opportunity for investors. Companies involved in green energy solutions, such as Bloom Energy (BE), FuelCell Energy (FCEL), and Plug Power (PLUG), Canadian Solar (CSIQ), First Solar (FSLR), Sunova Energy (NOVA), Powershares WilderHill Clean Energy ETF (PBW), Sunrun (RUN), SolarEdge Technologies (SEDG), SunPower (SPWR), Invesco Solar ETF (TAN), experienced remarkable growth as they became central to the global push for cleaner energy.
Bloom Energy (BE)
Bloom Energy specializes in solid oxide fuel cells, which provide a cleaner alternative to traditional energy sources by converting fuel directly into electricity. In 2020, Bloom Energy’s stock, which was trading around $6.60 at the beginning of the year, skyrocketed to approximately $24 by December, representing a staggering 263% gain. The company’s innovative approach to clean energy and its potential to reduce emissions captured significant investor interest.
Call Options Performance: Call options for Bloom Energy with a strike price of $7.50 and an expiration in December 2020 saw extraordinary gains of over 800%, reflecting the surge in stock price and growing enthusiasm for green energy technologies.
FuelCell Energy (FCEL)
FuelCell Energy focuses on advanced fuel cell technologies that generate power through hydrogen, a clean energy source. In 2020, FuelCell Energy’s stock, which was trading at around $1.30 at the start of the year, soared to about $29 by December, an astronomical 2,138% gain. The company’s innovative technology and its role in the transition to green energy attracted significant market attention.
Call Options Performance: Call options for FuelCell Energy with a strike price of $2.50 and an expiration in December 2020 saw extraordinary returns of over 3,000%, reflecting the stock’s explosive growth and the massive investor interest in green energy technologies.
Plug Power (PLUG)
Plug Power, which provides hydrogen fuel cell systems for various applications, saw impressive growth in 2020. The stock, starting the year at around $4.30, surged to approximately $30 by December, marking a remarkable 600% increase. The company’s focus on hydrogen as a clean energy solution positioned it well within the green energy theme.
Call Options Performance: Call options for Plug Power with a strike price of $5 and an expiration in December 2020 experienced gains of about 1,000%, reflecting the stock’s impressive ascent and the growing excitement around green energy solutions.
Solar Power
Among the standout opportunities were solar power stocks, which saw remarkable growth as the world turned its focus to cleaner energy sources. Here’s a look at how investing in this sector could have led to substantial returns.
Key Players in the Solar Energy Space:
Canadian Solar (CSIQ): As a leading manufacturer of solar modules and provider of solar energy solutions, CSIQ benefited significantly from the rising demand. In early 2020, CSIQ’s stock price was around $23, and by the end of the year, it had soared to approximately $55, marking an impressive 139% gain.
First Solar (FSLR): Known for its advanced thin-film solar modules and largescale solar power plants, First Solar saw its stock price climb from about $50 to nearly $90, a robust 80% increase over the year.
Sunova Energy (NOVA): Specializing in residential solar solutions, NOVA’s stock price surged from around $8 to $22, a stellar 175% gain, as homeowners increasingly adopted solar technology.
Powershares WilderHill Clean Energy ETF (PBW): For those preferring a broader exposure, PBW, which focuses on clean energy companies including solar, was a prime choice. In 2020, PBW’s price rose from $32 to $70, a remarkable 118% increase.
Sunrun (RUN): This company offers residential solar panels and energy storage systems. RUN’s stock price jumped from $10 to $55, reflecting a 450% gain as residential solar installations surged.
SolarEdge Technologies (SEDG): Providing inverter systems and other solar solutions, SEDG saw its stock rise from about $75 to $275, an extraordinary 267% gain.
SunPower (SPWR): Another key player in residential and commercial solar solutions, SPWR’s stock climbed from $10 to $40, marking a 300% gain.
Invesco Solar ETF (TAN): For investors who wanted exposure to a range of solar stocks, TAN was a great option. The ETF’s price surged from $30 to $90, an impressive 200% increase.
Options Performance:
The call options for many of these stocks performed exceptionally well. For instance, call options on RUN saw gains of over 1,000% during this period, reflecting the massive surge in stock prices. Similarly, options on SEDG and CSIQ delivered gains exceeding 500%, showcasing the incredible returns available for those willing to take on the risk.
The Green Energy Surge: A Clear Opportunity
The green energy boom of 2020 highlights how recognizing and investing in emerging trends can lead to extraordinary returns. Companies in this sector saw t ir stock prices soar as they captured the market’s enthusiasm for green energy solutions, and their call options delivered phenomenal gains.
The key takeaway from this period is the power of recognizing major themes and their supportive sectors. The hype surrounding green energy was palpable in the media and investor circles, making it clear that this was a sector ripe for investment. For those who paid attention and acted on the opportunities presented, the rewards were substantial.
In summary, the green energy surge in 2020 was a prime example of how spotting and capitalizing on emerging trends can yield significant returns. The clear hype and media attention around sustainable energy created an easy layup for investors. By recognizing the green energy movement and investing in companies at the forefront, many were able to capture impressive gains and benefit from the global shift towards a more sustainable future.
