Solar Energy Headed for a Record Year
2014 is off to a hot start in the solar industry, and Solarbuzz recently projected that 9 GW of solar was installed worldwide in the first quarter, and 50 GW will be installed throughout the year.
For manufacturers, this will be a huge benefit as they recover from incredibly low pricing and margins. SunPower (NASDAQ: SPWR ) , JinkoSolar (NYSE: JKS ) , and Trina Solar(NYSE: TSL ) will be three of the biggest beneficiaries because of their high quality, solidbalance sheet, and the fact that they're already profitable.
But rising panel prices may actually hurt installers. SolarCity (NASDAQ: SCTY ) andSunEdison (NYSE: SUNE ) buy materials and panels from other manufacturers, and if demand rises significantly, so can prices. This could pinch their margins even as installations are rising. It's a delicate balancing act among the players in solar, but the rise in installations should be good for everyone.
In the video below, solar analyst Travis Hoium covers what we should take from first-quarter numbers and where investors should have their money now.
Three stock picks to ride America's energy bonanzaSolar power isn't the only energy source changing America. The Motley Fool is offering a look at three energy companies using a small IRS "loophole" to increase production and help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You to Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.
No comments:
Post a Comment