{"id":343648,"date":"2024-09-18T17:21:40","date_gmt":"2024-09-18T15:21:40","guid":{"rendered":"https:\/\/climatescience.press\/?p=343648"},"modified":"2024-09-18T17:21:43","modified_gmt":"2024-09-18T15:21:43","slug":"why-are-renewable-equipment-companies-such-poor-investments","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=343648","title":{"rendered":"Why Are Renewable Equipment Companies Such Poor Investments?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

By Steve Goreham<\/p>\n\n\n\n

Originally published in\u00a0RealClear Energy<\/a>.<\/em><\/strong><\/p>\n\n\n\n

Headlines promote renewable energy equipment companies as part of efforts to transition to Net Zero carbon dioxide emissions by 2050. Wind and solar system providers, electric vehicle manufacturers, green hydrogen producers, and other green equipment firms form a growing share of world industry. But renewable equipment firms suffer poor market returns, so investors should beware.<\/p>\n\n\n\n

The Renewable Energy Industrial Index (RENIXX) is a global stock index<\/a> of the 30 largest renewable energy industrial companies in the world by stock market capitalization. Current RENIXX companies include Enphase Energy, First Solar, Orsted, Plug Power, Tesla, and Vestas.<\/p>\n\n\n\n

IWR of Germany established the RENIXX on May 1, 2006, with an initial value of 1,000 points. This month, the RENIXX stood<\/a> at 1,013 points, essentially zero value growth over the last 18 years. In comparison, the S&P 500 Index<\/a> more than quadrupled over the same period. The RENIXX is down three years in a row from 2021, losing about half its value.<\/p>\n\n\n\n

Wind turbine manufacturers faced serious financial challenges over the last three years, even with rising sales. Rising costs, high interest rates, and project delays continue to impact the profitability of wind projects and equipment suppliers. The stock of Denmark-based Vestas Wind Systems, the world\u2019s largest supplier, rose only 7% over the last 16 years, and its stock price<\/a> has fallen 58% from a high in 2021. Vestas struggled<\/a> to make a profit in 2022 and 2023 and suspended dividends to shareholders.<\/p>\n\n\n\n

Other major wind suppliers have also been poor investments for shareholders. The stock<\/a> of Siemens Gamesa, the number two turbine maker, is down 65 percent since a peak in 2021. Gamesa reported a loss of \u20ac4.4 billion in 2023 and received<\/a> a \u20ac7.5 billion bailout from the German government that same year. Other top wind suppliers suffered major stock price declines since 2021, including Goldwind of China (down 77%) and Nordex of Germany (-36%).<\/p>\n\n\n\n

Eighty percent of the world\u2019s solar panels<\/a> are manufactured in China and the top six suppliers reside in China. The solar panel industry is beset by overcapacity and severe competition. Stock prices<\/a> of the top seven suppliers have all declined by more than 50 percent since 2021. The stock of US firm First Solar has risen since 2021 but remains below its all-time high price reached in 2008.<\/p>\n\n\n\n

Tesla, which was founded in 2003, remained the only pure-play, publicly traded EV stock until 2018. By the end of 2021, Tesla\u2019s value had soared to over $1 Trillion, boasting a market value<\/a> more than Toyota, Volkswagen, Mercedes-Benz, General Motors, Ford, BMW, and Honda combined. But Tesla is the exception.<\/p>\n\n\n\n

But in most cases, electric vehicle (EV) companies have been very poor investments. Between 2020 and 2024, 31 EV companies went<\/a> public on US stock exchanges. Only one of these 31 companies, the Chinese firm Li Auto, saw its price rise since the initial public offering (IPO). Thirty EV firms saw their stock prices fall, most precipitously.<\/p>\n\n\n\n

EV company price declines<\/a> from the IPO price include Fisker (-99%), Nikola (-94%), NIO (-50%), Lucid Group (-75%), and Rivian (-88%). Six others of the 31 companies went bankrupt. Tesla and Chinese firms BYD and Li Auto are the only EV firms profitable<\/a> today.<\/p>\n\n\n\n

ChargePoint is the world\u2019s largest dedicated EV charger company (behind EV manufacturer Tesla), with over 25,000 charging stations<\/a> in the US and Canada. ChargePoint went public in 2021 by merging<\/a> with Switchback Energy Acquisition Corporation, valued at $2.4 billion. The firm\u2019s value today is about $585 million, down 76% since 2021.  For fiscal year 2024, ChargePoint lost<\/a> $458 million on revenue of $507 million.<\/p>\n\n\n\n

It\u2019s not clear that any charging company can make money. High-speed, 50-kilowatt EV chargers cost about five times as much as traditional gasoline pumps. Eighty percent of EV charging is done at home, reducing the demand for public charging. ChargePoint, EVgo, Wallbox, Allego, and Blink Charging are all valued today at small fractions of their original IPO price. No EV charger firm is profitable, even after continuing to receive large government subsidies.<\/p>\n\n\n\n

Plug Power is a leading supplier<\/a> of hydrogen energy systems, including battery-cells for hydrogen vehicles and electrolyzers to produce green hydrogen fuel. Founded in 1997, the company went public in October 1999 at a split-adjusted price of about $160 per share.<\/p>\n\n\n\n

But during its 27-year history, Plug Power has never turned a profit. According to financial reports<\/a>, the firm lost $1.45 billion in 2024, up from a loss of $43.8 million in 2018. Its current stock price is under two dollars per share.<\/p>\n\n\n\n

Traditional established firms are finding that renewable equipment can be poor business. In 2023, Ford lost<\/a> $4.7 billion on sales of 116,000 electric vehicles, or over $40,000 per vehicle. General Electric\u2019s wind turbine business lost<\/a> $1.1 billion in 2023.<\/p>\n\n\n\n

The US federal government provided subsidies to renewable equipment companies of between $7 billion and $16 billion per year between 2010 and 2022. But the Cato Institute estimates<\/a> that because of the passage of the Inflation Reduction Act in 2022, subsidies will skyrocket to about $80 billion in fiscal year 2025.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

Without the fear of human-caused climate change and a rising level of government subsidies and mandates, many of these green companies would not exist. It\u2019s doubtful that carbon dioxide pipelines, heavy electric trucks, offshore wind systems, green hydrogen fuel equipment, and EV charging stations would be viable businesses in unsubsidized capital markets.<\/p>\n\n\n\n

During this last year, leading financial firms pulled<\/a> back on their climate change pledges. Bank of America, JP Morgan, State Street, and Pimco withdrew from Climate Action<\/a> 100+, which seeks to force companies and investment funds to address climate issues and adopt environmental, social, and governance (ESG) policies. But it\u2019s difficult to invest in renewable equipment companies when they are losing money.<\/p>\n\n\n\n

Steve Goreham<\/a> is a speaker on energy, the environment, and public policy and author of the bestselling book<\/a> Green Breakdown: The Coming Renewable Energy Failure<\/em>.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Headlines promote renewable energy equipment companies as part of efforts to transition to Net Zero carbon dioxide emissions by 2050. Wind and solar system providers, electric vehicle manufacturers, green hydrogen producers, and other green equipment firms form a growing share of world industry. But renewable equipment firms suffer poor market returns, so investors should beware.<\/p>\n","protected":false},"author":121246920,"featured_media":343652,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818154,691819094,691830640],"class_list":{"0":"post-343648","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-net-zero","9":"tag-renewable-green-energy","10":"tag-the-renewable-energy-industrial-index-renixx","12":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0Renewable-Energy-Featured-1.jpg?fit=1200%2C800&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1roI","jetpack-related-posts":[{"id":345167,"url":"https:\/\/climatescience.press\/?p=345167","url_meta":{"origin":343648,"position":0},"title":"Investors Beware Green Equipment\u00a0Companies","author":"uwe.roland.gross","date":"03\/10\/2024","format":false,"excerpt":"Headlines promote renewable energy equipment companies as part of efforts to transition to Net Zero carbon dioxide emissions by 2050. Wind and solar system providers, electric vehicle manufacturers, green hydrogen producers, and other green equipment firms form a growing share of world industry. But renewable equipment firms suffer poor market\u2026","rel":"","context":"In \"Poor Investments\"","block_context":{"text":"Poor Investments","link":"https:\/\/climatescience.press\/?tag=poor-investments"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0electric-car-charging-at-the-charger-at-house-solar-panels-wind-turbines-in-background-vector.jpg?fit=1200%2C622&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0electric-car-charging-at-the-charger-at-house-solar-panels-wind-turbines-in-background-vector.jpg?fit=1200%2C622&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0electric-car-charging-at-the-charger-at-house-solar-panels-wind-turbines-in-background-vector.jpg?fit=1200%2C622&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0electric-car-charging-at-the-charger-at-house-solar-panels-wind-turbines-in-background-vector.jpg?fit=1200%2C622&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0electric-car-charging-at-the-charger-at-house-solar-panels-wind-turbines-in-background-vector.jpg?fit=1200%2C622&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":425396,"url":"https:\/\/climatescience.press\/?p=425396","url_meta":{"origin":343648,"position":1},"title":"Climate Change and Energy:\u00a0 World Leaders in Turmoil","author":"uwe.roland.gross","date":"09\/02\/2026","format":false,"excerpt":"\u201cThere is no evidence that UN COP meetings and more than $10 trillion spent on renewables over the last 30 years have affected the climate. The average atmospheric carbon dioxide\u00a0concentration, which is blamed for global warming, has been rising over the last 50 years without any change to the trend.\u201d","rel":"","context":"In \"$10 trillion\"","block_context":{"text":"$10 trillion","link":"https:\/\/climatescience.press\/?tag=10-trillion"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/UN-COPs-and-C02-rise.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/UN-COPs-and-C02-rise.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/UN-COPs-and-C02-rise.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/UN-COPs-and-C02-rise.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/02\/UN-COPs-and-C02-rise.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":274904,"url":"https:\/\/climatescience.press\/?p=274904","url_meta":{"origin":343648,"position":2},"title":"\u201cGreen Breakdown: The Coming Renewable Energy Failure\u201d","author":"uwe.roland.gross","date":"22\/08\/2023","format":false,"excerpt":"Can wind, solar, and batteries replace the hydrocarbon fuels that power our modern industrialized society? Steve Gorham\u2019s new book,\u00a0Green Breakdown, shows why a forced transition to renewable energy\u2014the Net Zero agenda\u2014is costly, dangerous, and destined for failure. Integrating science, economics, and history, Steve Gorham\u2019s most recent book exposes the weaknesses\u2026","rel":"","context":"In \"energy crisis\"","block_context":{"text":"energy crisis","link":"https:\/\/climatescience.press\/?tag=energy-crisis"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0The-environmental-impacts-of-solar-and-wind-energy.jpg?fit=1200%2C857&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0The-environmental-impacts-of-solar-and-wind-energy.jpg?fit=1200%2C857&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0The-environmental-impacts-of-solar-and-wind-energy.jpg?fit=1200%2C857&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0The-environmental-impacts-of-solar-and-wind-energy.jpg?fit=1200%2C857&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0The-environmental-impacts-of-solar-and-wind-energy.jpg?fit=1200%2C857&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":244549,"url":"https:\/\/climatescience.press\/?p=244549","url_meta":{"origin":343648,"position":3},"title":"New geological study proves that the green energy movement is impossible to achieve","author":"uwe.roland.gross","date":"20\/02\/2023","format":false,"excerpt":"The renewable energy fantasy goal is achieving net zero carbon emissions by 2050.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-507.png?fit=1200%2C900&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-507.png?fit=1200%2C900&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-507.png?fit=1200%2C900&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-507.png?fit=1200%2C900&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-507.png?fit=1200%2C900&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":411689,"url":"https:\/\/climatescience.press\/?p=411689","url_meta":{"origin":343648,"position":4},"title":"India needs $21 Trillion to reach Net Zero by 2070","author":"uwe.roland.gross","date":"05\/11\/2025","format":false,"excerpt":"Reaching net zero carbon emissions is not cheap, if it is even achievable. Some people believe that it is not possible. According to a draft government plan, India, the third largest greenhouse gas emitter in the world, will need as much as\u00a0$21 trillion\u00a0to achieve its climate goals and lift its\u2026","rel":"","context":"In \"China\"","block_context":{"text":"China","link":"https:\/\/climatescience.press\/?tag=china"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/11\/0AQMdw3QfZg5O2ZnHOOELiokt7S9MCG2k746g94bC0wM9u_cL-vnDIbJQkr4wgxCpgqYVVASQ2xPjwxJQJPvI8x8RaQ2-81VMaL1HF_30exg5E7278wgIVWtUwvmXbIo_-1.jpeg?fit=1200%2C560&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/11\/0AQMdw3QfZg5O2ZnHOOELiokt7S9MCG2k746g94bC0wM9u_cL-vnDIbJQkr4wgxCpgqYVVASQ2xPjwxJQJPvI8x8RaQ2-81VMaL1HF_30exg5E7278wgIVWtUwvmXbIo_-1.jpeg?fit=1200%2C560&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/11\/0AQMdw3QfZg5O2ZnHOOELiokt7S9MCG2k746g94bC0wM9u_cL-vnDIbJQkr4wgxCpgqYVVASQ2xPjwxJQJPvI8x8RaQ2-81VMaL1HF_30exg5E7278wgIVWtUwvmXbIo_-1.jpeg?fit=1200%2C560&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/11\/0AQMdw3QfZg5O2ZnHOOELiokt7S9MCG2k746g94bC0wM9u_cL-vnDIbJQkr4wgxCpgqYVVASQ2xPjwxJQJPvI8x8RaQ2-81VMaL1HF_30exg5E7278wgIVWtUwvmXbIo_-1.jpeg?fit=1200%2C560&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/11\/0AQMdw3QfZg5O2ZnHOOELiokt7S9MCG2k746g94bC0wM9u_cL-vnDIbJQkr4wgxCpgqYVVASQ2xPjwxJQJPvI8x8RaQ2-81VMaL1HF_30exg5E7278wgIVWtUwvmXbIo_-1.jpeg?fit=1200%2C560&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":305218,"url":"https:\/\/climatescience.press\/?p=305218","url_meta":{"origin":343648,"position":5},"title":"Electric Power vs. Green Goals","author":"uwe.roland.gross","date":"28\/02\/2024","format":false,"excerpt":"The green energy push seeks to eliminate greenhouse gas emissions to fight human-caused global warming. Leaders tell us that without a complete transformation of electric power, transportation, and home appliances to achieve Net Zero carbon dioxide (CO2) emissions, we are doomed to suffer from increasingly severe climate change impacts.","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0download1800x1100.webp?fit=1200%2C733&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0download1800x1100.webp?fit=1200%2C733&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0download1800x1100.webp?fit=1200%2C733&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0download1800x1100.webp?fit=1200%2C733&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0download1800x1100.webp?fit=1200%2C733&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/343648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=343648"}],"version-history":[{"count":3,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/343648\/revisions"}],"predecessor-version":[{"id":343653,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/343648\/revisions\/343653"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/343652"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=343648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=343648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=343648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}