The Solar ETFs Keep On Shining
August 16th at 1:00am by Tom Lydon
The concept of solar energy sounds like a free and easy answer, but one of the major roadblocks is the high cost of converting the energy. Can related exchange traded funds (ETFs) assist in the proliferation of this alternative energy?
Materials handling and manufacturing, production efficiency and installation all drive up the price of photovoltaic solar array systems, the actual process of solar energy usage in your home.Cristen Conger for Discovery News reports that the California Energy Commission recently calculated the average cost of installing a commercial solar power system at $4.85 per watt, which represents a roughly 50 percent reduction from only five years ago.
This is the major proof in solar energy progress, as the production end as well as component design, which has edged away from customization and moved toward standardized solar power kits. [Do Solar ETFs Have a Bright Future?]
More developments that should help solar energy and ETFs progress:
- ETF Channel for Forbes reports that President Obama is backing a $2 billion deal on loans in support of loans for solar energy companies. Two plants, one in Colorado and one in Arizona, will be built by Abound Solar, and Abengoa Solar.
- SolarFun Power Holdings is selling 36 million shares to Hanwha Chemical for $78 million, reports ETF Channel for Forbes. Mergers, acquisitions, bankruptcies and consolidations will continue to transform the solar industry, and make it more utilitarian for investors and alternative energy seekers alike. [Why Congress Has Power Over the Success of Alternative Energy.]
For more stories about solar, visit our solar category. In addition to these two focused plays below, there are a variety of alternative energy ETFs that give some allocation to solar energy in addition to other forms of clean energy:
Tisha Guerrero contributed to this category.
