Why Solar, ETFs Are Gaining More Power
May 9th at 1:00pm by Tom Lydon
Solar panels are one of the easiest modern conveniences for hose who prefer green energy, particularly solar power. A plan to have utilities purchase power from homeowners could jump-start the industry and related exchange traded funds (ETFs).Installing small solar panels in your home is a great way to use the natural energy supplied by the sun, as well as saving on energy and utility costs down the line. Many times, the homeowner does not use the full amount of energy generated by the sun, so can utility companies tap into the leftover energy and supply the grid with extra power?
Jennifer Collins for MarketPlace reports that there is another twist: imagine if the utilities had to buy any extra power you generated! As of now, any extra energy that a household generates and does not use goes back to the power company – free.
A Senate committee is reviewing the idea that utility companies could buy any extra energy from households. This way utility companies would not have to build bigger plants. States like Washington, California and Maine might require utilities to pay for excess power. Naturally, utility companies are against this notion.
Tax credits may be another good way to go. For now, another proposal is low-interest loans to encourage more people to buy alternative energy systems.
- Claymore/MAC Global Solar Energy (TAN): up 4% year-to-date
- Market Vectors Solar Energy (KWT): up 3.6% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.