y*****l
发帖数: 5997 | 1 http://seekingalpha.com/article/302235-the-ultimate-guide-to-so
By Jared Cummans
Solar power is an increasingly popular energy source as well as an
investment option. The growing industry has led to a rapid adoption by
citizens, businesses, and governments to incorporate solar panels on
everything from parking meters to bridges. There are a wide variety of
panels meant for small homes and businesses as well as entire grids and
large buildings. As the industry continues to blossom, the cost of producing
the panels has dramatically decreased and over the coming years is
predicted to dip even more, perhaps making it a viable alternative to
cheaper fossil fuels like crude oil and natural gas.
Solar Power Explained
Solar panels are typically referred to by their technical name, photovoltaic
modules. As PVs become more efficient and less costly to produce, their
attraction as an investment has soared. Recent years have seen a number of
innovative solar companies emerge to help ween the planet off of fossil
fuels and on to a more renewable source. While solar is still in its infancy
, the facts and figures point towards a wealth of potential in its future.
For example, the earth receives more energy from the sun in one hour than is
consumed in an entire year according to Energy Matters. While solar may be
one of the least used renewable energies for the time being, it is by far
the fastest growing.
This year, the world’s largest solar energy project was recently offered a
loan totaling just under $1 billion U.S. dollars. Construction on the Agua
Caliente Solar Project began in 2010, and is expected to be complete by 2014
in the desert of Arizona. The project, headed by NRG Solar, will be
exclusively using photovoltaic modules produced by First Solar. The project
will create more than 400 jobs, and “will avoid 237,000 metric tonnes of
greenhouse gas emissions per year, equivalent to taking more than 40,000
cars off the road annually” writes Carmen Doyle. Already, Pacific Gas &
Electric company has entered into a 25 year contract with NRG to purchase
power generated from this robust plant.
Solar usage and capacity is dominated by European nations, with Germany
leading the way, but the rapidly growing China is nipping at its heels.
Recently, it was announced that China, the world’s most populated country,
will attempt to install up to 10 GW by the year 2015. The country also has
outlined plans to achieve a total capacity of 50 gigawatt hours by 2020,
meaning that the increase of solar power between 2015 and 2020 will be
fivefold. With China being the world’s largest maker of solar panels, this
estimation does not seem too far fetched, and has investors chomping at the
bit to cash in on this massive increase in alternative energy from one of
the few countries with the budget flexibility to pursue such a program.
Though the solar space had a brief slowdown in 2009, the industry grew by 73
% in 2010 to reach more than 40 gigawatt hours of total global capacity. As
a reference point, one gigawatt of energy is equal to one billion watts.
According to a 2007 report form the U.S. Energy Information Administration,
the average home uses 11,232 kilowatt hours of energy on an annual basis,
though estimates vary across the board. This means that one gigawatt is
enough energy to power roughly 90,000 homes for a year, and the total of 40
GW in place through out the world could power 3.6 million homes annually.
Over the past decade, solar capacity has grown an average of 39%, helping to
power more and more homes and businesses across the world.
Solar Power Supply And Demand
For the time being, the solar industry is dominated by the developed nations
of the world, which should come as no surprise given how expensive these
systems can be to install. China comes in as the 8th ranked country though
it has robust growth predictions and goals that it plans to meet in the
coming decade, making it a country to watch as the solar industry plays out.
Total Solar Power Capacity In MW (2010)
Germany 17,320
Spain 3,892
Japan 3,617
Italy 3,502
United States 2,519
Czech Republic 1,953
France 1,025
China 893
Belgium 803
South Korea 573
*Source: British Petroleum Statistical World Energy Review 100
Solar Power Price Drivers
As a global commodity, the price of production as well as overall capacity
of solar power is impacted by a number of factors, and is often subject to
significant price swings in a relatively short period of time. The major
price drivers of solar power include.
Weather Conditions: The most obvious price driver for solar panels comes
from weather conditions. Panels are strategically placed in sunny areas, but
any number of cloudy days or weaker than usual sunlight patterns could lead
to a lower output by various solar farms.
Government Subsidies: A number of solar panels and farms depend heavily on
government subsidies and tax breaks to keep their operations afloat. When
economic times are tough, government agencies may be forced to scale back on
alternative energy spending but likewise when economies are strong there
may be increased government participation in the space.
Crude Oil/Natural Gas Prices: Crude oil and natural gas are the two most
popular fossil fuels for energy production through out much of the world.
However, with both commodities being finite resources, fluctuations in their
price will have a major impact on whether or not solar power is a more
economically viable option by comparison.
Industry Innovation: With a number of companies working to constantly
improve the photovoltaic structure, industry innovation will have a
significant impact on solar. Photovoltaic panels are getting smaller, more
efficient, and less expensive to produce. The faster the technology for this
industry improves, the faster it will grow both as a practical means of
generating energy and as an investment.
Investing in Solar Power
Solar’s appeal as an investment stems from its wide use throughout the
globe. As such a popular commodity with such a strong growth outlook,
investors can use solar power to make plays against strong and weak
economies. An investment in solar power can also be used to make a play on
weather conditions or to hedge against crude oil and natural gas [see also
Company Spotlight: First Solar (FSLR)].
Solar Stocks
Solar production is quickly growing in China, however, a number of Chinese
companies are also listed on U.S. exchanges, giving investors easy access to
these securities. There are also a large number of options on foreign
exchanges.
First Solar (FSLR)
Trina Solar (TSL)
Jinko Solar (JKS)
JA Solar (JASO)
Yingli Solar (YGE)
GT Solar International (GTAT)
Solar ETFs
While direct investment in solar is impossible, there are several ETFs that
offer exposure to the underlying industry, giving investors a tangible asset
to help them play the very intangible commodity.
Guggenheim Solar ETF (TAN)
Market Vectors Solar Energy ETF (KWT)
Resources On Solar Power Investing:
Energy Information Administration
Solar Energy Investing
Original post
Disclosure: No positions at time of writing. | y*****l
发帖数: 5997 | 2 http://finviz.com/screener.ashx?v=311&t=FSLR,GTAT,JASO,JKS,KWT,
producing
【在 y*****l 的大作中提到】
: http://seekingalpha.com/article/302235-the-ultimate-guide-to-so
: By Jared Cummans
: Solar power is an increasingly popular energy source as well as an
: investment option. The growing industry has led to a rapid adoption by
: citizens, businesses, and governments to incorporate solar panels on
: everything from parking meters to bridges. There are a wide variety of
: panels meant for small homes and businesses as well as entire grids and
: large buildings. As the industry continues to blossom, the cost of producing
: the panels has dramatically decreased and over the coming years is
: predicted to dip even more, perhaps making it a viable alternative to
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