Orr

Beware of the Solar Stock Fad

Your comments about Europe are interesting. For a variety of reasons Americans have not been directly exposed to the real cost of energy. Only in the last 5 years have Americans began experiencing an increasing rate in the rate of energy inflation - mostly due to worldwide consistent increases in energy demand (namely from countries like China). It is not that Americans do not care or that Americans are not interested in participating in alternative energy it is that up until recently as a percent of a typical American's financial outlay energy costs have been a relatively small line item. Also, psychologically it is easier to spend a little here and a little there each week or month on energy (gasoline, natural gas, electricity). If these bills were bundled as a single once-a-year annual energy invoice then it would seem psychologically to be a more important aspect of our financial lives. I sit on the board of several local companies. Never do we discuss the cost of energy as a worry or concern. Health care costs for our employees, employee salaries, supply costs and taxes are far bigger numbers then something as small as electricity or gasoline.

Also, do not negate what is happening in the southeast with an insufficient amount of water to cool coal-fired electric generation plants and nuclear power plants. Solar and wind have little water requirements for operation.

As for me I am planning to install a 10,000 kw solar PVC system on the roof of my house. The ROI on this investment will be terrific - I am making a better world for my children. This is the same reason why I drive a hybrid vehicle -- as does my wife.

Why are we importing $400 billion a year of oil when we could all drive plug-in hyrbids connected to a solar/wind energy grid that is disconnected from commodity prices?

And yes, I have most of my portfolio in wind, solar, agriculture and advanced drug companies. Oil is not the future for Americans or for other developing countries with limited quantities of natural oil reserves.

Beware of the Solar Stock Fad

Don't forget about the looming water shortage. It takes a long time to develop a coal plant and a lot of water to cool it. Nuclear is out of the question in the current economic environment. Existing plants are being scaled back, especially in times of drought. Solar produces at peak power - precisely at the highest wholesale generation prices.

Solar and wind require no water for cooling. They are unconncected to commodity prices. There are no coal mining accidents and there are no nuclear waste problems.