Exploring Solar Investment and Solar Stocks

Solar Investment presents a good opportunity in alternative energy sector. Solar energy sector is more mature compared to other renewable energy sectors such as wind renewable energy and geothermal energy. Additionally, China (as the world leader in green energy) plans to increase its installed solar power capacity to 50 GW by 2020 from 305 MW capacity(at the end of 2009). This will provide additional boost to solar investment.

"Solar offers good value at the moment," especially since many of the stocks have fallen recently, says Matthew Page, whose $34 million Guinness Atkinson Alternative Energy fund's top holdings are solar stocks. Take LDK Solar, a Chinese company that is one of the world's largest producers of solar wafers, which are used in solar panel systems.

So, why should one consider buying solar stocks? There are various advantages in using solar alternative energy that makes it commercially viable and thus profitable:

1) Environmental advantage: Solar power is one of the most available electricity resources around the world. Solar cells generate electricity without any explicit environmental pollution (noise, vibration etc.), do not impact the local habitat or create waste.

2) Fuel risk advantage:Solar energy technologies are getting better and the industry is in a better place to properly size and configure solar panels systems to generate reliable, fixed-price electricity supply. The systems are becoming more reliable and do not suffer from fuel price volatility or other risks as is the case in fossil-fuels.

3) Alternative to Nuclear energy: The German government has committed itself to phase out nuclear power plants by 2022 and it will definitely positively affect the prices of solar stocks around the world. Additionally, the world has started to look at alternative energy options such as solar energy as a serious energy option in the wake of tragedy that happened in the Fukushima Daichi Nuclear plant in Japan. "The whole nuclear situation will be a huge positive for alternative energy," says Angelo Zino, a solar equity analyst with Standard and Poor's.

4) Subsidy programs: Solar energy industry has benefited the most from subsidies provided by governments around the world such as China, Japan, Canada, U.K., Australia, India and the Middle East and has definitely contributed to solar investment being a an option for seasoned investors.

5) Location advantage: Solar power is more accessible to both residential and commercial users since it can be made available locally without large-scale transmission and distributions lines. In the long run, it may be cheaper than regular power supply due to these cost-reducing factors. Compared to wind, biomass, and hydro power, solar power source (solar panels etc.) are located at the residential or commercial site and thus this alternative energy source is feasible for many people who have consistent access to sunlight. The stability and reliability of this energy source is another factors that contributes to solar investment being an attractive option.

In additional to solar stocks one can also explore other alternative energy stocks and funds investment options.

Go to Green Stocks for more information

However, one has to keep in mind the following limitations of solar alternative energy industry before investing in solar stocks or keep you solar investment safe:

1) Excess capacity: While growth is a great thing but it seems that the solar industry is facing fast growth as a very fast pace. What this does is creates an imbalance in the demand-supply equation. An excess of solar cells, solar modules, and solar panels can provide great options for individuals but it may reduce the overall capacity of the industry.

2) New Solar Technologies: The research and development (R&D) in the emerging alternative energy industry provides exciting opportunities to create new technologies. If a substantial efficient and cheaper solar technology comes along then it may hurt the existing players who have build their business model on existing technology and this may end up hurting solar stocks.

Here is a list of alternative energy companies that offer publicly traded solar stocks/solar energy stocks. The list is detailed but no way exhaustive:

Trina Solar Ltd (Tsl)

Real Goods Solr (Rsol)

Evergreen Solar (Eslr)

Canadian Solar (Csiq)

Ja Solar Holdings Co. Lts (Jaso)

First Solar Inc (Fslr)

Sun Power Corporations(Spwra)

Therefore, do keep an eye on these alternative energy companies and their publicly traded solar stocks as an investment option.

Go to Alternative Energy Investments from Solar Investments

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