How to Invest in Geothermal Energy Stocks

The key is investing in a geothermal company that has 2 things:

1. Access to land with high geothermal potential.

2. Contracts or pending agreements with the major utilities.

There are only a handful of publicly-traded geothermal companies that have these right now. So although pickings are slim for investors - they're not hard to locate.

Geothermal Investment in the US

The western portion of the United States maintains the largest amount of geothermal potential in the country. And Nevada is the one state that maintains the largest amount of geothermal potential in the west.

Experts have continuously described Nevada as a hotbed of geothermal activity. And with modest technological advancements (which will now have to come from established geothermal companies), the state's subterranean reserves could generate 1,500 MW of energy. That's enough to power 1.5 million energy-efficient homes!

Over the next few years, geothermal firms that currently have access to geothermal 'hot' spots in the western portion of the U.S. (especially in Nevada) or have the money to access them are the ones that will produce on a competitive level with other renewable energies

Geothermal energy investment future

The geothermal energy investment future is predicted to grow, especially as more people reduce or eliminate the use of foreign oil and fossil fuels, and turn to more environmentally friendly alternative energy options. Geothermal energy comes from areas where there is large amounts of heat in the earth, such as where the plates of the earth's crust come together. Geothermal energy companies and renewable energy stocks offer a terrific investment opportunity for many investors. Public geothermal companies have become more numerous, so there are more investing options available. Look for geothermal companies that have either access to geothermal areas or that have agreements with utility companies that do have access.

The cost of geothermal energy can be lower the closer the geothermal energy is to the place the energy is utilized, so look for geothermal companies who have access to ground zero in the geothermal area, the spot with the most underground heat that can be tapped.

Do the research when it comes to investing in renewable energy stocks. Know the company and understand the technology before ever parting with any of your investment capital. Check out the company history and earnings for the past, to see what kind of financial shape the geothermal company is in. Only invest in a solid company, that has knowledgeable and experienced managers and executives. This will assure you that the geothermal company is being properly managed, and this can have a direct effect on your investment in alternative energy stocks. Geothermal energy production will be one of the major energy sources of the future, especially in high geothermal areas. Investors who understand this can get in on the ground floor, before the geothermal energy future starts rising.

Investing in alternative energy companies does carry some risks, just like almost every other investment type, but a future that is not dependent on foreign oil means a future of domestically produced alternative and renewable energy sources, and one of these is geothermal energy. Geothermal companies that are in place to meet these needs will see large growth, which means better returns for investors

How to Invest in Geothermal Energy Stocks copyright 2011