Invest in Renewable Energy as a Small Investor
Wouldn’t it be great to help the environment and earn passive income simultaneously?
Investing in renewable energy and other sustainable technologies is expected to grow significantly in the upcoming years. However, the pace of growth depends on political decisions and global economic development.
Businesses and entrepreneurs might outpace political decisions. A large number of new sustainable technologies are currently under development and may emerge in the future. While some will succeed, others may fail.
You contribute to save the climate when you invest in renewable energy. At the same time you can earn interest on your investment.
The single offer with the highest safety and the highest interest on this page is from Debitum. However, it is always better to diversify by investing in different assets.
Table of contents
What are the best green investments?
The best green investments depend on your priorities: safety, profit, or idealism.
Idealism
As you’ll discover below, your primary objective should be to support sustainable activities for climate improvement. While there is potential for high profits in the long run, the risks are also substantial. Personally, it gives me a sense of fulfillment to contribute to bettering our world. The more people involved, the greater the impact.
Profit
Shares: From 2018 to 2022, sustainable shares outperformed traditional indices. However, in 2023, they incurred significant losses due to high inflation. It is predicted that they remain a good long-term investment, but the risks are high. Therefore, it’s crucial to diversify broadly, such as investing in ETFs.
Projects provide a fixed annual income ranging from about 5-12%. The term can be from 1-20 years. This profit needs to be weighed against the risk of project failure. Ensure your investment includes a mortgage to cover at least part of your losses.
Safety
Investing in renewable energy carries significant risks. For instance, Orsted, a company involved in wind and solar energy, experienced substantial gains, with over a 100% increase from March 2020 to December 2020. However, it lost almost half of its value from June 2023 to November 2023 due to high inflation.
When investing in a single project, there is a risk of failure. Diversification across multiple projects or sectors can help reduce such risks.
Conclusion
- It’s advisable to allocate only a minor portion of your funds to sustainable energy investments.
- Start by investing a minimal amount in each asset or platform initially and closely monitor their performance.
- Diversifying across a wide range of assets and projects is crucial. This strategy helps spread risk and enhances the overall stability of your investment portfolio. By avoiding concentration in a single area, you can better navigate market fluctuations and increase the potential for long-term success.
How to invest in renewable energy as a small investor
Investing in renewable energy as a small investor can be challenging when seeking affordable and sustainable options to create a diversified portfolio. Below you can find inspiration in the options I have invested in.
Stocks
When you invest in stocks, the goal is typically to see the value rise, resulting in a profit when you decide to sell. However, there is always the risk of the value falling below your entry price, leading to a loss. Given the inherent risk in renewable energy investments, it is advisable to diversify your portfolio significantly.
If you want to invest in individual stocks (in which you believe will perform), it can be quite expensive and aquires a lot of capital to fullfill a high diversity. Below I describe how you can invest in single stocks for as little as 10$.
Fractional stocks
Invest in fractional ETFs from 10$ without any fees at eToro
Updated December 2024
Fractional stocks: eToro provides fractional stocks and ETFs, enabling the purchase of small portion of a single stock with the same rights as full shares.
- Minimum price: 10$
- Zero trading Fees for ETFs – though E-Toro earns through the spread – the difference between the buy and sell prices.
- 1$ fixed trading fee for single stocks
- This means that you should invest at least 100$ in each stock (1% fee)
- Renewal energy: To find stocks in the revewal energy sector, search for “solar” or “clean energy”
In my experiment with eToro, I deposited the minimum amount of $50 and invested $10 (before the 1$ fee was introduced) each in Tesla, Orsted, 0968.HK (solar), FSLF (solar) and these two green ETF’s: QCLN and ICLN. I am keen to monitor their performance and decide wether I want to expand my investments here.
My green investments in eToro:
- TSLA (Tesla, electric cars)
- ORSTED.CO (Develops, constructs, and operates renewable energy solutions, such as wind farms, solar farms, and bioenergy plants)
- 0968.HK (manufacture glass for solar cells)
- FSLF (First Solar, manufacture solar modules and power grid)
- ICLN (iShares Global Clean Energy ETF)
- QCLN (First Trust NASDAQ Clean Edge Green Energy Index Fund ETF)
I haven’t tested the withdrawal process yet, as eToro charges a $5 withdrawal fee for USD accounts. Zero fee for EUR Accounts.
Visit eToro (referral link)
ETFs
A practical method for diversification is investing in Exchange-Traded Funds (ETFs). These funds bundle together a variety of renewable energy stocks, spreading the risk across the entire portfolio. This diversification helps mitigate the impact of poor performance from any single stock, providing a more balanced approach to investing in the dynamic renewable energy sector.
In a stock trading platform search for “clean energy”, “renewal energy”, “solar”, “windpower” etc. You may also look for “ESG”, which guaranties certain requrements regarding Environmental, Social, & Governance. Chose “Article 9” which guaranties sustainability.
An example of choosing an ESG ETF
This is to illustrate the considerations I have had as an amateur small investor when choosing an ETF to invest in. Which considerations you have and what you invest in is at your own risk.
- Marketplace: I chose Revolut Bank because I already have a positive experience with this bank and because it is very simple to use.
- Search: I looked for an ESG ETF and found LYM9. Then I checked the countries and sectors invested in. Finally, I checked the costs in this document: Central Investor Information.
- Cost: In most cases, there is a minimum fee for trading, which makes it expensive to invest smaller amounts. In addition, the yearly fee can vary greatly and reduce your return.
- Trading price: €25 (February 13th, 2024) – which was affordable to test something new.
- Trading fee: Revolut offers one free trade every month.
- Depository fee: 0.12% annually (which is better for small investments than a fixed fee).
- ETF administration fee: 0.64% annually (which is on the lower end).
- Risks:
- Risk indicator: one step above average (5 out of 7).
- The price: From 2024-2024, it has lost 50% of its value. In early February 2024, the price started to increase. I think there is a good possibility that the price is going to increase in the following years.
- ESG: As most of the world is moving in the ESG direction, I am confident that within a few years, investing in ESG will be a good investment if I am willing to wait for a good return.
- Technologies: Some technologies may fail, and others may blossom.
- My conclusion: The ESG focus, the low annual cost, the low price, and the diversity inherent in an ETF convinced me that the risk versus possible reward made it worth investing in. I will monitor the performance and decide if I want to invest more in this ETF or maybe try others.
Fractional ETF’s
Fractional ETFs allow investors to purchase a smaller portion of a whole ETF share, making it more affordable to invest in several ETFs with a limited amount of capital.
Etoro offers a few sustainable fractional ETF’s for 10$ or €.
You may also invest in fractional ETF’s at Mintos for 50€ (not explicit sustainabel)
Bonds
Bonds generally offer lower returns compared to stocks, but they are considered more secure. They form a complementary relationship: when stocks perform well, bonds may have lower returns, and vice versa. For decades, experts have recommended diversifying between bonds and stocks, typically with a mix of around 40% bonds and 60% stocks. This allocation aims to strike a balance between safety and profit.
If you plan to invest more than 10 years, you may want to increase the stock part, as there is longer time to level out the god and bad performance years.
In a stock trading platform search for ETF bonds: “green bond”, “sustainable bond” etc. You may also look for “ESG”, which guaranties certain requrements regarding Environmental, Social, & Governance. Chose “Article 9” which guaranties sustainability.
Where to find green bonds
To find green bonds and sustainable bonds on a stock trading platform, follow these steps:
- Search for ESG ETFs:
- Use the search function on your stock trading platform.
- Look for ETFs that are explicitly labeled with “ESG” (Environmental, Social, & Governance) criteria.
- Use Specific Keywords:
- Include specific keywords like “green bond” or “sustainable bond” in your search query.
- Explore the platform’s filters or categories related to bonds and fixed-income securities.
- Look for “Article 9” Classification:
- Check for funds that are categorized under “Article 9” according to the Sustainable Finance Disclosure Regulation (SFDR). This classification signifies a high level of sustainability commitment.
- Consider ESG Rating Agencies:
- Some platforms provide ESG ratings for funds. You can consider funds with higher ESG ratings, as they are likely to align more closely with sustainable investing principles.
European Green Bond Standard (EUGBs) of October 2023 are requirements in order to use the EUGB label. It assures that the bonds must be fully invested in environmentally sustainable economic activities. It will start applying by the end of 2024. Read more about the EUGB details.
Fractional bonds
Debitum
At Debitum partner Foresto and Bono House you can sometimes invest in fractional bonds (called “notes”) from €10 in forest and in Eco-Houses.
Bonus offered by Debitum:
- 25€ to both you and me when you have invested 1.000€ or more
- Get your bonus
Read my review about Debitum
Read more about fractional bonds.
Projects
Investing in a specific concrete project can offer a more personal connection as you often have access to detailed descriptions and sometimes even measurements of the impact on climate change that your investment contributes to. These investments typically have shorter terms, ranging from 1 to 5 years, with interest rates positioned on the lower end in relation to risks.
To balance profitability and safety, you should direct your investments toward projects currently in construction. This strategy is considered safer than investing in undeveloped technologies. By focusing on projects in the construction phase, you may benefit from a more stable environment and reduced uncertainties compared to investments in technologies that are still in the development stage.
Invest in solar cells
Ecoligo
Updated July 2025
Ecoligo constructs and operates solar systems after construction. When you invest, you contribute to the funding until the customer has paid in full for the solar system, including your principal at the end of the contract term. In the meantime, you receive monthly interest. This means that both you and Ecoligo have a shared interest in the success of the project. Given Ecoligo’s operational history since 2016, I believe that this investment is safer than most similar projects.
Languages in the website: German
Translate the website to your language in Google chrome:
- Open the Google menu in the top right (the 3 dots)
- Choose “translate”
The identification is quite difficult – especially if you don’t speak German. It is through a video call. But They do speak english too.
Security
- License: regulated under MFC Service GmbH
- Trustpilot score: 4.4 (July 2025)
- Buyback guarantie: No
- Diversity: Limited. Only solar cells, but in several different countries.
- Late loans: Not to my knowlege
Loans
- Interest: 7-9%
- Loan term: 2-4 Years
- Available loans: few
- Minimum invest: 100€
- Secondary market: No
- Autoinvest: No
My recommendation: I definitely recommend investing in these sustainable projects. However, due to the high risk involved, consider allocating only a smaller portion of your total investments initially. Diversify your investment across as many different projects as possible. After a few years, assess the performance, and then decide whether you want to increase your investment. This approach allows you to gauge the risk and returns of sustainable projects before committing a larger portion of your investment portfolio.
Pros
- Supporting the climate
- You and Ecoligo share a common interest in the success of the projects.
- Ecoligo claims, That “there have been no defaults in payments to the crowd” (January 2024)
Cons
- Limited diversity
- Early exit is not an option
- Risk of losing your entire investment (as of January 2024, this has not occurred)
Bonus:
- You receive €30, and I receive €50, 35 days after your initial investment. your bonus here.
- Claim your bonus here
Invest in trees
Invest sustainably by purchasing trees through WorldPlanting
Updated January 2024
At WorldPlanting.com, you can make a sustainable investment in Paulownia trees. By purchasing a tree, you can earn approximately 25% annually until it is harvested after 6 years.
Languages in the website: English
Security
- License: No
- Insurance: The trees you purchase are insured against fire, war, natural disasters, etc.
- TrustPilot score: There is no Trustpilot review on this site. However, Scam-detector.com does not consider it a scam.
- Diversity: Very limited
- Established: 2021
Investments
- Price: The pre-purchase price for one tree is approximately €37/$.
- Investment term: After about 76 months, you will receive €100/$ for the harvested tree.
- Profit: €63/$ in 6 years, which equates to over 25% per year.
- Secondary market:
- You have the flexibility to sell your trees at any time without incurring fees. The price for a tree increases by 0.027€/$ every day, resulting in an annual rise of nearly 10€/$, which exceeds a 25% annual return.
- Moreover, you have the option to purchase trees from older plantations at this higher price.
- Available planetrations: few
- Autoinvest: No
My personal experience
Initially, I had reservations about the 6-year investment term with this relatively new concept and a company with a brief history.
To my positive surprise, just 10 months after purchasing a tree, I was able to sell it with a 20% profit. I tested the withdrawal process, which was done via email, and within less than a week, the funds arrived in my account.
My plan is to continue investing in more trees and sell them back after a year or so. At least one tree I will keep until the end to discover how it works.
Pros
- Very high interest rate.
- Ability to sell back with a profit and without fees.
- Insurance coverage against fire, war, natural disasters, etc.
Cons
- New concept within a young company.
- No Trustpilot reviews available.
- Poor diversification options.
Bonus:
Currently, there are no bonuses available.
Mixed Sustainable Investments
Ener2crowd
Updated June 2025
Ener2Crowd primarily offers investments in solar energy projects, but they also provide opportunities in other sustainable sectors such as windfarms, hydropower, energy efficiency of buildings, and more.
This diversified range of investment options allows individuals to contribute to various renewable energy initiatives, spreading their investments across different sectors within the clean energy industry.
This approach not only supports the transition to sustainable energy sources but also provides investors with the opportunity to create a diversified and environmentally conscious investment portfolio.
Languages on the website: Mostly Italian, but partially English and Spanish.
Translate the website to your prefered language in Google chrome:
- Open the Google menu in the top right (the 3 dots)
- Choose “translate”
Security
- License: No. In the event of the company’s liquidation, all payments and financing contracts remain valid and active as the money flow is managed by an external Payment Institution named LemonWay, ensuring the integrity of all financial transactions.
- TrustPilot score: 4.1 (June 2025 )
- Foundation: 2019
- Buyback guarantie: No
- Diversity: Limited, with few projects, primarily in Italy.
- Late loans: Not of my knowlage
Loans
- Interest: 6-10% (Ener2crowd charges a fee for repaid installments of 0.05%)
- Loan term: 1-5 years
- Available loans: few
- Minimum invest: 100€
- Secondary market: No
- Autoinvest: No
My recommendation:
I definitely recommend investing in these sustainable projects. However, due to the high risk, it is advisable to allocate only a smaller portion of your total investments initially.
Diversify your investment across as many different projects as possible. After a few years, evaluate the performance before deciding whether to increase your investment. This approach helps manage risk while allowing you to assess the viability and returns of the projects over time.
Pros
- Contributing to environmental sustainability.
- Offering various types of sustainable investments.
- Positive reviews on Trustpilot.
Cons
- High risk associated with investments.
- No option for early exit.
- Challenging sign-up process
Bonus:
- We both get 0,5% extra interest in the first project you invest in
- Get your bonus here
Debitum
Updated November 2024
Debitum offers various business loans. One of its loan originators, Sandbox Funding, specializes in offering sustainable loans for electrification and forestry projects.
Languages on the website: English, Deutsch, Francais, Espanol, Latviesu.
Security
- License: regulated under MiFID II — one of the most stringent regulatory frameworks in the EU
- TrustPilot score: 3.7 (December 2024)
- Foundation: 2015
- Buyback guarantie: Yes
- Diversity: Limited
- Late loans: Not of my knowlage
Loans
- Interest: 12-14.5%
- Loan term: 5-24 months
- Available loans: few
- Minimum invest: 10€
- Secondary market: No. But it is announced to be coming soon.
- Autoinvest: Yes
- Auto deposit: You can set up a recurring deposit in your bank or in Revolut Bank
Recommended autoinvest settings
Choose Autoinvest – Costimize your Strategy
- Name: I call it 1-12M-sandbox
- Max. portfolio size: Make it a little larger than your funds (The interest increase your funds)
- ABS return, p.a.: 10-20%
- ABS term, months: 1-12
- Maximum investment amount: €20 (if you can’t enter €, choose a %)
- Loan originators:
- Choose Sandbox if you only want sustainable investments.
- Choose all if you want to diversify
- Enable auto invest?: Yes
- Auto invest 1h/day?: No
My recommendation:
I definitely recommend investing in these sustainable projects. With Debitum regulated under MiFID II and boasting a long history of being a sound company, I believe this is the safest investment mentioned on this page. Additionally, there is the auto-invest feature and high interest rates.
However, since it only involves a single loan originator, I suggest allocating only a smaller portion of your total portfolio.
Pros
- regulated under MiFID II
- High interest
- Auto-invest
Cons
- No secondary market (yet)
- Limited diversity
Bonus:
- We both get €25 when you have invested €1.000 or more.
- Get your bonus.
GoParity
Updated July 2025
Recent news:
Autoinvest and a secondary market is now available.
In March 2024, GoParity obtained the new EU crowdlending license ECSP. Among other things, this means that investors will be warned if they attempt to invest beyond their risk tolerance. Additionally, a higher standard of information about each investment will be required.
GoParity exclusively focuses on the 17 UN Sustainable Development Goals.
GoParity offers a diverse range of sustainable projects, including solar energy, decarbonization efforts, biofuel projects, electric buses, energy-efficiency initiatives, and more.
Languages in the website: English, Spanish, Portuguese
Security
- License: The new EU crowdlending license ECSP
- Trustpilot: 3.3 (July 2025 )
- Buyback guarantie: No
- Diversity: Medium: 7 countries and 20 loan originators
- Late loans: one of my 7 loans has been slightly delayed but has been paid back now.
Loans
- Loan types: Mostly solar cells, but also other sustainable investments
- Loan term: From 6 months to several years
- Available loans: Few. You receive a mail when new projects are available
- Interest: 4% – 9.25%
- Minimum invest: 5€
Flexibility
- Secondary market: yes
- Autoinvest: yes
You can establish an automatic investment strategy as follows:
- Set an recurring minimum deposit of €25 from your bank account every month.
(40€ a month to avoid a 0,50€ direct debit monthly fee). - Choose the risk level and the max amount to be invested in each project
- And you are done
Detailed guide to automatic investment in Goparity
Pros
- Sustainable investments
- The new EU crowdlending license ECSP
- Good rating on Trustpilot
Cons
- Low interest
- No short term loans
- Few loans
Bonus:
- Get 5€ bonus with your first investment
- Sign up here and get your bonus
- Or use this referral code: FLEMO33199
Remember, always conduct thorough research, diversify your investments, and consider consulting with a financial advisor to tailor a strategy that aligns with your financial goals and risk tolerance.
Read more
How to create a safe investment strategy