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Investing in green can keep you out of the red and in the black. Green or cleantech subsectors cover many areas, including Energy generation, storage, and efficiency. Cleantech is now seen as a fast growing sector due to the rising price of oil and the new awareness of environmental concerns.

Skyrocketing crude oil prices, limited supplies, increased demands and the politics of oil make investing in green technologies smart. These high prices force exploration into alternate green energy sources like solar, nuclear, wind, and ethanol.

Of all the alternative energy sources, solar seems to be the most promising, because of its flexibility, and abundance. Solar panels can be installed in remote areas as well as big cities, and they are easy to manage and maintain. First solar (FSLR) is a smart long-term stock because it has contracts with 12 European developers, which last into the future. Affordable stocks that have sunny futures are Suntech Holdings Inc.(STP) and Sun Power (SPWR).

Recently the U.S. senate failed to pass $17 billion worth of tax credit extensions to help the private sector develop renewable energy sources, because it was loaded with pork. Both the democrats and the republicans are in favor of the extensions and are expected to pass a bill in the near future. Since the U.S. represents only 10%-15% of the solar market there was only a small dip in stock prices.

Global wind power generation has quadrupled between 2000-2008. It is renewable and remarkably clean, but it can be intermittent and therefore inconsistent. American Super Conductor (AMSC), a long-term growth and income generating stock, Broadwind Energy (BWEN) and Duke Energy (DUK) produce wind technology, and will do well with options trading.

Nuclear energy is poised for a rebound for the following three reasons:

1. Both suppliers and consumers are going nuclear. Regardless of the US government's reservations about nuclear energy, the market is demanding it.
2. The nuclear energy market has incredible momentum with Market Vectors Global Nuclear Energy (NLR) rising 6.1% in the past three months.
3. There are 72 plans for new plants in China, Russia, India and Japan.

Last year congress accelerated the adoption of ethanol by forcing oil companies to eliminate a popular gasoline additive, and mandated that more biofuels be mixed with gasoline. However, the recent rise in the price of corn, and the massive destruction of cornfields in the flooded areas of the Midwest Corn Belt threaten to make ethanol less cost effective. You may want to think twice about investing in ethanol, but if you already own the stock protect yourself with covered calls.

Energy efficiency can be enhanced by hydrogen fuel injection products, which increase the efficiency of the engine by 4% and decrease the fuel consumption by up to 30%. If you're the speculating type, look into Hydrogen Hybrid Technologies Inc.(HYHY).

Hybrid cars, which run on two or more types of power, are gaining steadily in popularity. There are many hybrid-related investment opportunities, which are less risky than the major automobile manufacturers. Check out Ballard Power (BLDP), who produces fuel cells. Remember that option trading can protect you from losses.

Public opinion has turned and people are increasingly asking corporations to make greener products. In fact, according to Forrester Research, 12% of U.S. adults are willing to pay extra for products that use less energy. Investing in green technologies is truly investing in the future.

http://www.washingtonpost.com/ wp-dyn/content/article/2006/04 /17/AR2006041701563.htmlU.S. Companies Embrace Green Technology
www.amex.com
http://w ww.forbes.com/2008/06/17/solar -wind-energy-markets-equity-cx _cg_0617markets

Learn more about this author, Kathy Stemke.
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