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Solar is About to Become a Majoe Industry

|Includes: FSLR, PG&E Corporation (PCG), STP

I have been covering the solar industry for nearly 40 years now, and for most of this time it has only been economic in space stations. But times are changing. If you look carefully at your electric bill and calculate the cost per kilowatt hours each month as I do, you will notice that the price has been going up for the last ten years. This is partly because of ineptly handled deregulation, but also because our utility, Pacific Gas & Electric (NYSE:PCG) is mandated by state law to reduce greenhouse gas emissions.  Last year, the collapse of the economy and crude prices drove the cost of thin film solar’s primary raw material, polysilicon, down dramatically. The cost curve is falling, the demand curve is rising, and it is only a matter of time before they cross. The gap now is only a few cents per kilowatt, and that can easily be bridged with government subsidies. This industry is on the verge of becoming truly profitable. All it might take is another rise in crude prices, something you can count on. Watch behemoth First solar (NASDAQ:FSLR) position itself to cash in, as well as Suntech Power (NYSE:STP) and SunPower (SPWR. But also watch the volatility, as this is definitely an “E” ticket ride.