When it comes to investment "bubbles" we've recently
experienced two major "popping" incidents. The first was back in the
late Nineties with the technology bubble popping leaving a wreck of literally
hundreds of online startup businesses.
The second was the housing bubble from the early 2000s. We're still
feeling the impact of that bubble bursting.
Now there is a worry that clean technology will be the new fragile bubble. However, there are indications that would point in the direction of
longer lasting investment opportunities with clean technology businesses.
Here's why:
Clean technologies
get paid first.
Unlike the internet companies who were offering free services, most clean
technology companies like those making and installing solar panels are paid up
front for their services. In other words, nobody is giving away a solar energy
system for free in the hope you'll buy another one. The potential drawback is
that for these businesses to succeed they will require a serious investment
from the consumer. This brings up the need for a strong marketing campaign to
make sure the consumer understands all the money-saving benefits of clean
technologies down the road.
It's good for the
planet.
At the heart of any green technology is the desire to make the world we
live in a better place. By reducing our dependency on fossil fuel burning forms
of energy we can make important strides in protecting our fragile eco-system.
That approach holds a lot of appeal for many folks. We might not need to buy a
luxury item from some online web store but we should all be interesting in
preserving the environment. This makes clean technology more of a "calling"
as opposed to a "fun fad" and that is going to increase its longevity
as a business.
Government support.
For the most part, governments have stayed out of online businesses. It
also seems that any government involvement in the real estate industry has had
dubious effects. However, with clean technology the government can play a vital role in terms of offering support. Not only have they been providing loan
guarantees to clean technology business but there have also been tax credit
incentives to spurn consumers into investing. The partnership between the
government and clean technology appears to be in for the long haul.
Slow and steady growth.
Unlike the internet and housing bubbles, nobody is going to become an
instant millionaire in the clean technology industry. That doesn't mean you
can't find success but the approach is one of slow and steady growth. That
removes a sense of urgency in investors looking for overnight returns. Smart
investors understand the nature of the clean technology business model and will
make the appropriate decisions towards infusing those industries with the
needed capital.
