These Are The Solar Stocks To Buy Now
If you needed yet another reason to pay close attention to the solar industry - this is it...
Earlier this month, First Solar (NASDAQ:FSLR) announced that by the end of this year it will have the capacity to produce more than 1 GW per year. To put that in perspective, that's the equivalent of an average-sized nuclear power plant!
Of course, unlike a nuclear power plant, First Solar's technology does not require the mining or transportation of uranium to stay operational, and it doesn't come with $31.4 billion in waste management costs. That's what has been set aside for the nuclear waste fund, according to the Nuclear Energy Institute.
Now, we put a buy out on First Solar back in November at $88.61 a share. Today the stock trades around $153. Given today's market, a 72% gain in 4 months isn't bad.
Of course, we're not about to sell this thing now. Figuring very conservatively, this stock is worth no less than $170 a share. And depending upon how quickly the stimulus money moves through the solar sector later this year, investors could be looking at a share price of around $190.
Now, I realize that most investors don't want to hear about how their tax dollars are going to be used to provide support for the solar industry - or any industry for that matter. After all, we all advocate a free-market system without government intervention.
But the fact is, when it comes to energy, there's never really been a "free market" system in place.
No Apologies for Profits
Whether its solar and wind or oil and coal - across the board, energy has long been highly subsidized.
So we make no apologies for taking full advantage of the government's latest efforts to bolster solar development in the U.S.
Now as you already know, $43 billion was set aside in the stimulus for renewable energy. But truth be told, it's the solar industry that's getting the lion's share on this one.
First off, as my colleague Nick Hodge has mentioned before, consumers can now take a 30% refund on the value of new installations. . . before state incentives.
So a $25,000 solar power system in North Carolina, for example - where there's already a 35% state credit in place - will now run about $8,750.
Consumers in North Carolina can shell out that much to the utilities in just 3 ½ years!
With that kind of payback, no one should be surprised to see homeowners rush to take advantage of these discounts on the taxpayers' dime.
There's also $6 billion dedicated to loan guarantees on new solar construction, and $5.5 billion set aside so federal buildings can increase their use of renewable energy.
According to the U.S. General Services Administration, 75% of those projects receiving funding will use solar technology.
This is huge!
But it doesn't stop there. . .
In order to facilitate those large-scale solar farms in places like California, Nevada and Arizona, the government is also coughing up billions for infrastructure upgrades that will move those solar-powered kilowatts to the grid.
So basically, the government is not only funding new solar development - but they're also guaranteeing the infrastructure necessary to move all this clean, solar-powered electricity.
The Game Changer
It couldn't be more obvious that Washington desperately wants to add solar to the nation's energy mix.
Sure, they could've done this years ago, as solar technology has been around for decades. But the truth is, it's never been able to compete with coal, nuclear or natural gas.
Until now. . .
You see, with every doubling of solar capacity, the cost of solar comes down by about 20 percent.
My friends, the government is giving the solar industry a billion-dollar shot of steroids. And as a result, new capacity is set to soar - and the cost of solar is expected to fall dramatically.
So much, in fact, that according to the Sacramento Municipal Utility District, the price of solar can be competitive within 2 years.
I'll say that again, because it's worth repeating. . .
In 2 years, solar can be competitive with coal and natural gas.
This is the game-changer, my friends. And this is what now allows the solar industry to guarantee one of the single most disruptive technologies in the history of power generation.
Now if you're currently a member of Green Chip Stocks, you're well aware of our favorite solar companies that have already started to benefit this year.
In fact, you've probably already made a few bucks in these early stages of Washington-fueled growth.
But if you're not already a member, you can get a free copy of our latest report: Profiting from the Great Solar Shakeout.
This report outlines our top solar picks for 2009 and beyond, and is free when you become a member.
Whether you think solar is the real deal, or think it's nothing but hot air, one thing is certain. . .
Thanks to the government's new-found love for solar, there are a couple of solid solar stocks that can make you a lot of money this year. So why not make it?
Click here to get your free report now.
To a new way of life, and a new generation of wealth. . .
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