Solarbuzz LLC, a solar consultancy firm, released a report yesterday that highlighted some pretty impressive 2008 numbers for the solar industry.

According to the report, the solar industry generated $37.1 billion in revenue in 2008. That's more than double the $17.2 billion that was generated in 2007. As well, solar photovoltaic installations grew from 2.83 gigawatts in 2007 to 5.95 gigawatts in 2008. Most of this came from Europe where the Spanish market grew 285 percent, thanks mostly to a very generous government incentive program. Of course, today, many are looking to the U.S. market to take the lead, now that so much support is being thrown behind the solar industry here at home.

Still, 2009 remains to be a tough year for solar stocks. In fact, SunPower Corporation (NASDAQ:SPWR) and Energy Conversion Devices (NASDAQ:ENER) have recently plummeted as a result of lowered guidance.

SunPower has lost more than 20 percent over the past week, and Energy Conversion Devices fell hard this morning, giving up 25 percent at the open. That being said, we believe the issues facing solar today (primarily credit issues), are not company-specific, and the reaction to the news on SunPower and Energy Conversion Devices has resulted in both stocks being oversold. It is unlikely that solar stocks will soar anytime soon...but the long-term potential for the major players, like SunPower, Energy Conversion Devices and First Solar, remains solid.

Jeff