Solar ETFs: Lighting Up the Green Energy Sector
November 16th at 2:00pm by Tom Lydon
The solar energy sector might not be at full strength just yet, but its prospects are looking much better than they were last year. Now may be the time to consider the sector’s exchange traded funds (ETFs) as an opportunity.
Last year, financing seized up and demand went off a cliff. Today, demand for solar modules, a unit of interconnected solar cells, is so high that most of the industry is sold out. Germany is leading the way, making up about 36% of market demand. France, Italy, the United States and Japan are seeing their own demand rising quickly, reports Jessica Rao for CNBC.
On the supply side, the shortage of polysilicon, the building block for solar panels, is a thing of the past. (Why solar ETFs will shift to a brighter future). A massive oversupply of the material is anticipated over the next three years, giving solar panels a dramatic drop in cost to produce, and therefore utilize. This could lead to greater adoption of solar energy on the consumer level. (Read about the green energy sector here).
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