What are the risks of investing in renewable energy?
Investing in renewable energy can involve several risks, including market volatility, regulatory changes, and technology risks.
Can you explain market volatility in this context?
Market volatility refers to the fluctuations in energy prices, which can affect the profitability of renewable energy projects.
What about regulatory changes?
Regulatory changes can impact subsidies, tax incentives, and compliance requirements, potentially affecting investment returns.
Are there any specific technology risks I should be aware of?
Yes, technology risks include the potential for new innovations to render existing technologies obsolete or less competitive.
How can I mitigate these risks when investing?
Diversifying your investments, staying informed about market trends, and consulting with experts can help mitigate these risks.
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