Bright Light Shines On Solar ETFs

A bright spot is appearing in the alternative energy industry andsolar exchange traded funds (ETFs) could be the ones benefiting fromall the light. Why?

  • Solar energy is becoming cheaper and more efficient to make throughadvances in solar panel technology. The industry is developing a newthin-film panel technology that will soon replace the limited capacityproduced from polysilicon panels. Panel efficiency is currently around9%, but efficiency should reach 18% to 20% in a few more years, whichwill likely make solar panels the cheapest source of energy.
  • Retailers are also experimenting with solar panels to cut down costs by placing panels over large stores and warehouses. Wal-Mart (WMT: 50.38 -0.34 -0.67%)is one such retailer experimenting with this, and if it goes as plannedthe store could become one of the largest U.S. power producers.

Ordos officials have allotted 65 square kilometers of land for theproject and they will be working in construction and financing withFirst Solar. The company will be operating the plant under China’sfeed-in tariff, which guarantees prices paid for renewable energy.

  • Market Vectors Solar Energy (KWT: 14.52 -0.11 -0.75%): up 6.1% year-to-date; FSLR is 8.8%
 Bright Light Shines On Solar ETFs
 Bright Light Shines On Solar ETFs

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