Power Investing

Has the solar photovoltaic market finally reached the tipping point?

By Rona Fried, Ph.D.

The year 2004 may well be remembered as the watershed for solar energy. Fifty years after the solar cell’s invention, the industry finally is showing clear signs that it is tipping toward mass commercialization.

Rising Stars Eager investors are keeping an eye on solar firms whose stock has increased in valuation recently. A sampling follows. BP Solar (BP) Carmanah Technologies (CMH.V) Evergreen Solar (ESLR) Kyocera (6971 JP) RWE Schott Solar (privately held) Q-Cells (privately held) S.A.G. Solarstrom (SAG.GR) Sharp (6753 JP) Shell Solar (SC) Solar-Fabrik (SFX.GR) SolarWorld (SWVG.DE) Sunways (SWW.GR)

Through solar photovoltaic (PV) technology, which converts sunlight into electricity, the sun is the world’s most abundant source of energy. Yet it has been a long road for those who have worked to advance the technology. Though total installed PV capacity remains but a speck on the landscape of energy consumed worldwide, experts predict the solar PV market will quadruple by 2010, from the current $7 billion market to $30 billion. With annual growth rates exceeding 30 percent and expanding profit margins, solar PV is on track to become a fast-growth, profitable industry.

For investors eager for opportunities in this niche, I offer some rising stars to watch.

Rona Fried, Ph.D., is president of SustainableBusiness.com, the online community for green business: daily sustainable business and investor news, Green Dream Jobs, Business Connections and Progressive Investor. Contact her here. This article excerpted from the special report, “Investing in Solar PV: A Market at the Tipping Point,” recently published by Progressive Investor, SustainableBusiness.com’s sustainable investing newsletter.