The shift into renewables may also be seen as a way for large banks to diversify their portfolios, which are heavy in fossil fuel – the largest U.S. banks are among the top financiers of the coal industry. Nevertheless, the firms acknowledged that they are in a position to shape the energy industry ahead.
“Of course, there are risks: One of them is political. Globally, green-energy projects are the beneficiaries of government subsidies that can easily be revoked. In the U.S., for instance, a 30% tax credit for solar installation is due to decline to 10% in 2017. Yet solar prices are falling so rapidly that such subsidies will soon be unnecessary,” according to Barron’s.
Guggenheim Solar ETF
