Energy Conversion Devices to Benefit from California Financing for Solar Panels

California is once again leading the nation. The city of Berkeley approved recently to finance solar panels for both home and business. This is a milestone for solar energy to be widely installed on every single home. The city has designed this program to meet a voter-approved mandate to cut its greenhouse gas emissions 80 percent by 2050, according to CNN Money.

Back in May this year, California announced an 800MW solar farm project as a part of plans to cut greenhouse emissions. As we can see, the state is really warming up to achieve its goal. No doubt other cities in the state will also come up with similar plans to tackle the greenhouse gas emission. Beginning in 2007, the California Energy Commission managed $350 million targeted for new residential building construction. It will use funds already allocated to the Energy Commission to foster renewable projects between 2007 and 2011. According to the California Energy Commission, the so called "New Solar Homes Partnership" will focus on new residential construction.

So which company can get the most benefit? Energy Conversion Devices (ENER) is the only company so far that develops solar panels for home installation. The company mainly focuses on unique roofing PV panels for homes. Unlike other solar companies that sell solar panels to industry solar farms, this part of the market is not effected by Spain's solar subsidy limit. The California deal opens a huge market for Energy Conversion Devices. The growth for home installation of roofing PV panels is projected to be parabolic with more and more cities in California, encouraging home owners to use solar energy.

Energy Conversion Devices' roofing PV panels also attracted big industry companies for their energy needs. The control system giant Johnson Control (JCI) yesterday signed 3 contracts totaling $3M to use ENER solar panels to build BIPV roofing systems on projects in Wisconsin, California and Washington.

Bottom line: With congress passing offshore drilling and renewable energy tax credit bills, solar companies are starting to run again. Energy Conversion Devices stands to be one of the best to invest in.

Comments

[Truth Seeker:]

You appear totally uninformed about the stock you are trying to pump. Energy Conversion Devices (ENER) currently has NO RESIDENTIAL product offering. And the company definitely does not "mainly focus on unique roofing PV panels for homes," if we are to believe the company's 10K More importantly, the company has virtually no presence in California, if we are to believe the California Solar Initiative Program data. Only 26KW worth of installations has been reserved since March 31st, according to that document, a grand total of six homes. Regarding the supposed 3 contracts with JCI, you failed to mention that those are actually signed with SIT, a penny stock that is hitting new 52week lows (off 50% since May).

2008 Sep 18 12:04 PM

[Road Runner:]

You're clueless. Sunpower doesn't offer home installation products?

www.sunpowercorp.com/P...

2008 Sep 19 01:08 PM