The Rising Sun

As oil and gas prices are getting higher businesses and consumers turn to alternative energies. One that has huge potential usage in the future is solar because the source is free and it can be installed in remote areas. Solar energy provides electric power for residential, commercial, industrial, and public utility applications in various markets worldwide.

Recently, investors have been jumping on the solar bandwagon because the suppliers cannot meet the world demand. That made solar stocks getting higher and higher. However, when capacity starts to keep up with the demand, will those investors get burnt because of too much sun?

17-May-2007: CNBC Mad Money Jim Crammer said “There is a ‘textbook oversupply’ of solar now.” Moreover, there are four solar initial public offerings coming to market.

Some of the notable solar players are:

U.S.-based Companies

• MEMC Electronic Materials, Inc. (WFR)
• First Solar, Inc. (FSLR)
• SunPower Corporation (SPWR)
• Evergreen Solar, Inc. (ESLR)

China-based Companies

• LDK Solar Co. Ltd. (LDK)
• Suntech Power Holdings Co. Ltd. (STP)
• Yingli Green Energy Holding Co. Ltd. (YGE)
• JA Solar Holdings Co. Ltd. (JASO)
• Trina Solar Ltd. (TSL)
• China Sunergy Co. Ltd. (CSUN)
• Solarfun Power Holdings Co. Ltd. (SOLF)

Not sure which solar players to pick consider an investment in an Exchange-Traded Fund (ETF). This ETF also has stake in non solar companies such as Zoltek and International Rectifier.

• PowerShares WilderHill Clean Energy (PBW)

The price tag of having solar electricity is still out of reach for most homeowners. Thanks to a California-based company Nanosolar the cost will definitely be more affordable.