What Will Make Solar ETFs Shine?

Southern California Edison is on the cusp of the alternative energy movement, and their push could help warm up solar exchange traded funds (ETFs).

The newest power plant from Edison consists of 33,700 solar panels atop a warehouse in Fontana, CA.

The panels are set to feed green energy directly into the power grid. The swath of photovoltaic panels span two square miles and may be the start of the largest rooftop solar installation in the world, reports Marla Dickerson for LA Times.

When completed, the solar panels would energize more than 160,000 homes. This is the first of more than 150 commercial buildings that Edison is going to outfit with solar panels over the next five years. In comparison, the 250 megawatts roughly equals the capacity of all the solar panels produced manufactured in the entire United States last year.

First Solar (FSLR) is providing the panels. The big push for solar energy that California is making could help this company and solar ETFs, of which it is a major component.

• Claymore/Mac Global Solar Energy (TAN): down 70.3% since its April 15 inception (click on chart to enlarge); First Solar is 9.6%

Comments

[billp37:]

"When completed, the solar panels would energize more than 160,000 homes."

When the sun shines.

What is the heat rate and capacity factor for this solar project?

2008 Dec 05 08:06 AM

[Allah:]

Very spotty analysis, you just throw TAN out there with one piece of positive anectodal evidence. Are you actually recommending it, you don't really say? I wonder if the fact that California is near bankrupcy and fossil fuels are cheap now would negatively impact the prospect for future unprofitable solar projects.

2008 Dec 05 09:32 AM

[John Cordes:]

To the comments: Don't store grain during abundant harvests in case there is a drought next year. Don't create a sinking fund, rainy day fund, in case there is financial stress in the future. And for God's sake, you certainly wouldn't want to plan ahead with alt. energy, just in case the cost of oil and energy might escalate. No future in that. No sir.

Gee, maybe this time we've elected some politicians who can see past the end of their noses, and just maybe the solar and wind industry will not collapse entirely because oil is temporarily and marginally plentiful. Who knows?

2008 Dec 05 10:22 AM

[NOWHEREMAN:]

any one follow PZD? I've seen other posts on it but do not have any insight other than Charts.

I've been very negative on the whole complex, not because I don't like the sector but because this Bear will not turn on a dime. IMO

2008 Dec 05 01:28 PM

[33Nick:]

Indeed JCordes, you are right. If we don't start somewhere, we will be right back at square one. It's nice to see this industry moving forward, regardless of what naysayers have to say, it is moving forward.

As far as photovoltaic innovations, check out CIGS. A cheap way to manufacturers panels that produce electricity under poor conditions.

You really have to look at it in a practical way and think long term. We already made mistake by quick ROI, let's start looking at longer term investments.

2008 Dec 05 05:21 PM

[Sola Bleeva:]

Just came from an energy conference in Annapolis. Inside scoop is that Obama transition team is ready to pour some fuel on job creation in energy efficiency and alternative energy. It won't light a fire under major solar projects, but I'm betting it will have big long term effects. Keep the faith. Oil will be back at $100 in 12 months...

2008 Dec 05 09:20 PM

[Techs next ...:]

Solar is Silicon Valley's "next big thing," just like the internet was in 1995. The valley is always searching for the next big market, and they have solar in their clutches. Having worked in tech for 15 years, I can tell you, when techies get a hold of something they like, they will not give it up. they will work all day and night to get it done--even if profitability takes years. No question about it.

Intel, AMAT, IBM, HPQ, Cypress Semi, and just about everyone in Silicon Valley have been investing heavily in developing the solar industry as their next big thing, and the investment is accelerating since 2003.
greenwombat.blogs.fort.../

The credit crunch will not stop this.

Silicon valley is looking at solar, wind and other alt's as a way to take over 2 gigantic markets; oil and cars. These 2 major economic markets are the prize and now that the tech pit bulls have their teeth in these markets, they will never give it up. This is the same attitude we witnessed with Apple Computer developing the PC and taking IBM's market share and developing an entirly new industry. Jobs is the type of person that exists there in hundreds of thousands of engineers.

I have lived through it and this attitude prevails today as ever. Wait and see, solar and alternatives will not be stopped by big oil, credit crunch or anything. They will have the prize of big oil's market and the car market too. Mark my words.

2008 Dec 06 03:11 AM

[James75035:]

Which companies do you like in Silicon Valley and are they hiring project finance professionals?


On Dec 06 03:11 AM Techs next big thing wrote:

> Solar is Silicon Valley's "next big thing," just like the internet
> was in 1995. The valley is always searching for the next big market,
> and they have solar in their clutches. Having worked in tech for
> 15 years, I can tell you, when techies get a hold of something they
> like, they will not give it up. they will work all day and night
> to get it done--even if profitability takes years. No question about
> it.
>
> Intel, AMAT, IBM, HPQ, Cypress Semi, and just about everyone in Silicon
> Valley have been investing heavily in developing the solar industry
> as their next big thing, and the investment is accelerating since
> 2003.
> greenwombat.blogs.fort.../

>
>
> The credit crunch will not stop this.
>
> Silicon valley is looking at solar, wind and other alt's as a way
> to take over 2 gigantic markets; oil and cars. These 2 major economic
> markets are the prize and now that the tech pit bulls have their
> teeth in these markets, they will never give it up. This is the same
> attitude we witnessed with Apple Computer developing the PC and taking
> IBM's market share and developing an entirly new industry. Jobs is
> the type of person that exists there in hundreds of thousands of
> engineers.
>
> I have lived through it and this attitude prevails today as ever.
> Wait and see, solar and alternatives will not be stopped by big oil,
> credit crunch or anything. They will have the prize of big oil's
> market and the car market too. Mark my words.

2008 Dec 08 01:16 AM