The little-known British eco companies that are poised to profit from Labour's green drive

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It can sometimes be hard to believe that the world is in the midst of a climate crisis.

The new Labour Government has vowed to make Britain a ‘clean energy superpower’ in a drive towards net zero.

For canny investors, however, there may be a silver lining. The stock market is sprinkled with eco-businesses. Pick the right ones and there could be some juicy rewards as Britain goes green – though remember, as with any share investment, your capital is at risk and could lose some or all of your money.

Nonetheless, the past couple of years have been hard. For years, many clean-energy companies attracted investors by offering generous dividends, funded by long-term contracts with National Grid and electricity firms. Bluefield Solar Income Fund Many people associate solar power with sunny climes but panels can deliver the goods as long as there is daylight

Manager James Armstrong has been true to his word. Dividends have risen every year since flotation and are on track to do so again this year, with the company targeting an 8.8p payout, up from 8.4p in 2023. Boss Minesh Shah has created a broad portfolio since then and delivered rising dividends to shareholders. Today, the group is valued at £2.4 billion and generates enough power for 1.9 million homes. But TRIG has been hit hard in recent times, with the shares falling from £1.45 in 2022 to just £1 today. The fall seems overdone.

The model is simple and Roof has made steady progress since floating at £1 in 2021. But the shares have tumbled to 66p, hit, like its larger peers, by high interest rates, and concerns about future growth. Unlike gas and coal plants, wind and solar generation is more intermittent. On calm days or during winter, demand for energy may outstrip supply.

But supporters believe better times lie ahead, not least because the group recently signed a £43 million, two-year contract with Octopus Energy to provide battery storage energy at a fixed price. Hargreaves Services The planned Sizewell C nuclear plant, to be built in Suffolk, is expected to produce enough energy for six million homes

 

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Labour’s jobs strategy relies on private sector investment, says ministerDecarbonising the economy must be undertaken, said Secretary of State for Wales Jo Stevens, but it should be seen as an opportunity to help rather than damage it
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