Green Investing: A Smart Choice this Quarter?

Today’s stock market doesn’t look as grim as it did a few days ago, but I think we can all agree that we are facing an unstable future at best. However, Dan Shapley at The Daily Green wrote today a bit about investing in energy efficiency – and this is one industry that is actually still doing well. No, I don’t mean choosing “green” stocks. I mean actually investing in green technology. Here are ways that Shapley says you can get a good return on your money even while the stock market is weak:

1. Install solar panels.
2. Buy a fuel-efficient car.
3. Pay for a tuneup.
4. Get a home energy audit.
5. Install CFLs.
6. Buy power strips.

Ok, now I’m all for the above tips, because they are green options, but at the same time, I question how financially sound these tips are. After all, this is supposed to be an article about investing your money in a green way for a profit. Here’s what I think about the advice:

1. Install solar panels: While you can pursue federal and state rebates to help with up-front costs, it is going to take five to ten years before you make back your money. Frankly, by then, I’ll be very surprised if solar technology isn’t better. If you have to cash, definitely upgrade your home to run partially on solar power, but don’t look at this as a way to see a positive return within a year or two. If you’re interested from an investing standpoint, give the technology some more time.
2. Buy a fuel-efficient car: Hybrids are great for the environment. If you can afford one, you should definitely get one. However, cars are never, ever, ever a good investment. They depreciate too quickly. You’ll save money in gas, but studies show that even with the current high gas prices, you’ll never truly “make back” your money. Well, I shouldn’t say never, but you have to own the car for decades. Again, this is an amazing option because it is better for the environment, but don’t look at it as a way to invest your money for a positive return.
3. Pay for a tuneup: You should already be paying to tune up your car once a year from a safety standpoint. That’s why most states require inspections. This article says you could save up to 20% on fuel costs, but keep in mind that they’re saying “up to.” The average person won’t save that much. To me, I guess that paying what, $100 maybe, for a tune up isn’t really an “investment.” It is what you should be doing annually anyway, and really, if you do it more often, you won’t make back your money. Instead, check your tire air pressure and fluids yourself for free every few months and call it a day.
4. Get a home energy audit: There’s a lot of money to be saved if you do home improvements. Don’t pay for an audit though. You can simply walk around your house and check out your energy usage and potential problems yourself. Most utilities companies offer information about making your home more energy efficient.
5. Install CFLs and 6. Buy power strips: These are the two closest things to investments on the list, but we’re talking about less than $300 here, even if you have a big home. For someone who invests in the stock market and is looking for different opportunities, this is just a drop in the bucket. That doesn’t mean you shouldn’t do it – you will make your money back and more fairly quickly – but the answer to your Wall Street woes isn’t buying 5000 light bulbs.

I guess my main problem with this article was that I was hoping for some sound green investing advice, not a few tips to save money around the house. If you really want to pursue green investments, I recommend talking to a financial professional. Find out what stocks are doing well, regardless of the market conditions, and look at the companies that have dropped but will likely rebound (buy low sell high, right?). Do your research and read over company environmental policy. There are a lot of solid stock choices if you want to invest in corporations with a commitment to going green.

You can read all kinds of stock market tips a b5media’s own Talk Stock Trading.