This is a concise article that looks at making money on green, the stimulus money, energy incentives and rebates. Solar panels are becoming cost competitive with utility energy and provide an emerging market to make money on solar stocks.

Solar stocks have had their respective run ups and yes some volatility in the last couple years. Hands down leader is First Solar (Nasdaq: FSLR) , has taken advantage of lower solar panel prices, federal and state energy incentives and a world wide marketing channel.  Building global relationships is perhaps one of the strongest elements to the FSLR success story. FSLR is confirming its $2B outlook for fiscal 2009 and has enjoyed an almost steady run up for the last several months, making it the highest priced per share of the solar stocks.  .

First Solar Global Relationship building:

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Strong customers and partner relationships recently with Pfalzsolar, a German solar project developer and utility company will grow the business substantially in Europe. In addition, First Solar and Juwi Holdings AG has secured financing for a 53 MW (photovoltaic) PV power plant in Germany.

 

Best Solar Stocks:

There are a number of players in the game – and all show some substantial opportunity. Among the best know and larger ones include SunTech Power (NYSE: STP), SunPower (NASDQ: SPWR), and SolarfunPower (NASDAQ: SOLF).

What’s driving the demand?

Fluctuating energy prices, global warming, and subsidizes are contributing to the demand of solar panels. President Obama’s $50B for Green incentives like solar and wind tax breaks and green infrastructure spending will continue to drive the demand through at least 2011. Now that solar panels are getting closer to grid power in price it drives the opportunity to the retail customer. The major value proposition is ,once the capital cost and installation cost is covered the cost of electricity is essentially free. Double dipping between state and federal subsidies can cover as much as 80% of the cost of solar installations.  Major power suppliers like National Grid and NSTAR will be eligible to take $8B worth of state grants for solar projects, while vendors like First Solar will receive 20% tax credits.

Market growth:

The global market for silicon-based PV panels has grown 42% annually for the past 5 years. Since 2005, the market value of the world’s publically traded solar companies have grown from $1.1B to $75 B a 7,250% increase.

Evergreen Solar (NASDAQ: ESLR) based in Marlborough MA has gotten

some acclaim due to the silicon ribbon technology it has developed. Evergreen Solar is a vertically integrated solar panel manufacturer that users its technology to produce solar cells with less silicon. Unfortunately,  it also costs more in operational costs which take it out of the lead options in terms of price.  

In the solar industry, competition is based on cost containment and the cost of efficiency.

First Solar’s cost to manufacture is the low cost producer with a cost of 98 cents per watt. We expect the stock price to steadily rise as long as the demand for solar panels is strong. 

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