Alternative Energy Investments presents - Investing in Solar Energy

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Investing in Solar Energy
By Cato Green

From February 8, 2008 to February 14, 2008 volatility was in the market concerning First Solar stock. But unlike the way most other stocks have performed or under performed lately, this stock went up, way up. From $164 a share on Feb. 8th to $236 on Feb. 14th, that is 44% in just 5 trading days. This could be just the luck or hard work of one company if this type of jump was just one company in one industry, but it wasn’t. During the same time period Sunpower’s stock went from $63 dollars a share to $83 dollars a share. That is equivalent to a 32% rise in the value of the stock.

Is this a trend within an industry or just a fluke? Both companies reported 2008 fourth quarter earnings during this 5-day period. These advances were against not only what the so-called Wall Street professional analyst projections but against the trend of the Dow Jones and Nasdaq themselves. Not to mention that many other solar energy companies saw gains in this same period.

Is there a reason why this industry is gaining while the rest of the economy is in a free fall? There are four major factors to this in the solar industry.
1) An increase in production of solar energy. The source of the energy is also free.
2) A decrease in the cost per watt being produced.
3) The replacement of the more efficient thin film solar cells is taking place.
4) An ever-increasing demand for cheap reliable energy.

With several companies reporting the production of a single solar cell for around $1, solar power is a cheap reliable source of energy. Investing in solar energy is not only a way to make money as an investor but also a way to invest in a greener earth. This renewable, reliable green energy source is not only profitable but the wave of the future. There will still be volatility in the market. The stocks of solar power suppliers will continue to fluctuate, but over the long period of investment that has been necessary, the trend is positive. Investing in solar may not only be profitable but good for a greener earth.

Cato Green for http://www.WayToGoGreen.org

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