Top Solar Stocks

Now Is the Time To Buy Solar… Here’s Why

If you’re a cleantech investor, or are thinking about becoming one, this is a chart you can no longer ignore:

They say a picture is worth 1,000 words, but I’ll try to sum this one up in about half that space.

You see, this chart is layered with meaning. It not only serves as a timeline for the recent election and the recently-passed stimulus, but it also indicates that now is a great time to invest in the solar sector.

The period in that chart from September to mid-November illustrates the reaction of solar stocks to two events.

First, that period coincides with time that the world was realizing recession was imminent. Banks were failing–a few disappeared–and the first stimulus was underscoring investors’ worst fears.

Simultaneously, solar stocks were reacting to the possibility of four more years of Republican rule, which would’ve ensured much less cleantech support than is currently being offered–to say the least.

That’s why they immediately popped a third of the way through November, when the democratic candidate prevailed in the election.

And they surged–some as much as 140%–up until Congress began debating the second stimulus and a partisan battle raged, more bank lending became necessary and bank nationalization became investors’ new fear.

Uncertainty about what the bill would and wouldn’t include led to a lack of transparency, and continued fear of the worse sent the markets in a downward spiral once again.

That brings us to now.

Time to Buy Solar Stocks

The stimulus has been passed and includes billions of dollars of tax breaks to bolster the solar industry.

Investors in large solar projects can now recoup 30% of the initial cost of a solar installation immediately and with no cap. And that’s on top of the many state incentives that are offered.

$6 million has also been set aside to pay the fees on $60 billion worth of cleantech guaranteed bank loans.

And there are plenty more.

But solar provisions in the stimulus are only a third of the reason that now is the time to load up on solar shares.

Another third of the reasoning is Obama’s recent call for a national cap-and-trade program during his address to a joint session of congress earlier this week. Such a system will make burning coal much more expensive, giving solar a competitive advantage and spurring demand.

The last third–and this is the coup de grace–is the coming implementation of a nationwide renewable portfolio standard. Senator Tom Udall has already introduced such legislation, which would require utilities to generate 25 percent of their electricity from wind, solar and other renewable energy sources by 2025. That would guarantee a market–and increased revenues–for the solar industry.

As investors, what more could you ask for than a guaranteed long term market?

Solar stocks present such an opportunity.

And their recent decline in price due to extraneous factors offers the perfect buy-in opportunity for long-term gains.

To green energy and green profits,

Chris
Clean Energy Sector