Solar Energy ETFs May Start To Pick Up After A Rocky Start
March 8th at 1:00am by Tom Lydon
The lights went out on solar-energy exchange traded funds (ETFs) in February, which dropped by double digits for the month. The good news? Incentive programs and government financing are revitalizing the ailing sector.
Claymore/MAC Global Solar Energy (NYSEArca: TAN) and Market Vectors Solar Energy ETF (NYSEArca: KWT) fell 11% last month, writes Kevin Baker for TheStreet.
First Solar (NYSE: FSLR) dropped in February after Chairman Michale Ahearn dumped 1.3 million shares, or 40% of his holdings. Demand may diminish as Germany may start cutting photovoltaic-panel subsidies.
The sector may not be dark for long, though:
- Mitsubishi Electric also plans to triple solar-cell production in the next two years.
- SolarCity has received $90 million in new funding and it will be used to finance SolarCity’s SolarLease and power purchase agreement offerings, which allow customers to make monthly payments with zero money down for their solar installations, according to Environmental Leader.
- Utility Xcel Energy is offering a SolarRewards program that will give customers a one-time payment of $2.25 per installed watt of generating capacity to help offset the cost of small- to medium-sized installations.
- Customers may also sign up for rebates from federal, state and local government agencies.
- In India, the government included the National Solar Mission in their budget, which has a target of 20,000MW of installed solar power by 2022, report Ameet Shah and Sourabh Sen for The Wall Street Journal. The budget for the Ministry of New and Renewable Energy has increased by 61%.
For more information on solar power, visit our solar category.
- Claymore/MAC Global Solar Energy (NYSEArca: TAN)
- Market Vectors Solar Energy ETF (NYSEArca: KWT)
Max Chen contributed to this article.
