Is it time to gamble on solar stocks?

There are some glimmering signs that the recession may be coming to an end.  Is it time to consider investments for your hard-earned cash?  Well, that is something you should discuss with your financial advisor.  Yet, if you want to put money in renewable energy, perhaps you want to consider solar stocks.

The most important advice we can give you when it comes to this type of investment is to watch the market carefully.  Be a wise consumer.  In just the past 12 months, expert advice regarding solar stocks has changed quite a bit.

Here is a clip from one year ago:

Investment in solar cells is the way to go in 2009-2010

According to a recent MSN.com report, there are three solar cell manufacturers that you might want to consider in today’s economy:

SunPower (SPWR, news, msgs), Suntech Power Holdings (STP, news, msgs) and First Solar (FSLR, news, msgs).

When you think about your investments, how do you categorize them?  Many people believe that solar stocks are more akin to technology rather than energy stocks.  No matter how you slice it, solar stocks have a higher rate of return than energy stocks.

Solar technology is changing at a rapid rate, with efficiencies increasing, while the prices come down.  Federal and state tax incentives are encouraging more and more people to install solar power systems on their homes and businesses.

Surprised?  Here’s the bottom line:

Electricity produced by solar cells will become cost-competitive with electricity generated by conventional power plants in the sunshine-rich U.S. Southwest without any government subsidies in 2013, investment bank Jefferies & Co. projected in an October 2007 report.

There are so many reasons to be impressed with renewable, solar energy!  Why wouldn’t you consider putting your money in a clean, green future?

Solar Panels - a Bright Spot in the Economy?

Things may seem pretty bleak these days with massive layoffs announced at Starbucks, Microsoft and Caterpillar recently.  I tend to focus on the tidbits of positive news, which appear to be more and more infrequent.  So, imagine my surprise when I read yesterday that people are continuing to invest in renewable energy sources, like wind and solar.

For the first time ever, renewable energy sources accounted for the biggest share in the increase of the electrical capacity of the United States. What does this mean?  In short, more alternative energy projects were built than new coal-burning power plants in 2007.

And more should be on the way:

Not all communities want to go green for the sake of saving the environment.  I had coffee yesterday with the proponent of a wind project in an area of Oregon that is more interested in hunting and fishing than worrying about global warming.  But one thing that will resonate from region to region is the idea of new tax revenues and new jobs for areas hit hard by the recession.  Construction laborers, developers, electricians and more have been affected by the downturn in construction, but are easily qualified to work on renewable energy projects.

The statistics are found in a report called Electrical Power Annual 2007:

In 2007, general electrical capacity increased by 2.3%, from 4,065 million megawatt-hours in 2006 to 4,157 MWh in 2007. The total net summer capacity saw total increase of 8,673 MW. And out of that, wind power alone accounted for 5,186 MW: the largest portion of the energy increase pie graph.

Even though we still have a lot of progress to make (renewable energy only accounts for a total of 2.5 % of total electrical capacity), it is important to recognize these significant strides towards clean, green energy and future independence from foreign oil supplies.

If I had extra money to invest, this is where I would put it.  What do you think about the future of renewable energy?  Safe bet, or risky proposition?