Solar ETFs: Lighting Up the Green Energy Sector

The solar energy sector might not be at full strength just yet, but its prospects are looking much better than they were last year. Now may be the time to consider the sector’s exchange traded funds (ETFs) as an opportunity.

Last year, financing seized up and demand went off a cliff. Today, demand for solar modules, a unit of interconnected solar cells, is so high that most of the industry is sold out. Germany is leading the way, making up about 36% of market demand. France, Italy, the United States and Japan are seeing their own demand rising quickly, reports Jessica Rao for CNBC.

On the supply side, the shortage of polysilicon, the building block for solar panels, is a thing of the past. (Why solar ETFs will shift to a brighter future). A massive oversupply of the material is anticipated over the next three years, giving solar panels a dramatic drop in cost to produce, and therefore utilize. This could lead to greater adoption of solar energy on the consumer level. (Read about the green energy sector here).

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• Market Vectors Solar Energy ETF (NYSEArca:KWT): down 5.4% year-to-date



• Claymore/MAC Global Solar Energy (NYSEArca: TAN): up 1.7% year-to-date

Comments

[twitee]

Avoid speculative stocks within the ETF.

First Solar is the only true solar company with solid revenue growth and low debt.

2009 Nov 17 03:38 PM

[AirBoss]

How much exposure to SPWRA?

2009 Nov 18 09:02 AM

[LaChic]

they all have exposure to spwra who has been caught cooking the books so they say. I think it is too early in the game to buy these etf's.
Normally these etfs move with oil, not this time.

2009 Nov 18 09:21 AM