About five months ago, a major push was given to the solar industry by the Asian Development Bank. Can this initiative put some force behind solar exchange traded funds (ETFs)?
Under the plan, the bank will implement a variety of solar power projects that will push capacity to six times what it is today. In India, the push is especially huge: the government has allocated $20 billion to its solar program, reports Kevin Grewal for Daily Markets.
One of the most promising aspects of solar energy proliferating is that the barriers that were once in place are diminishing. For one, capital funding and financing came to a halt in the sector resulting in a glut of solar panels and ample supply to meet lackluster demand. Additionally, costs of solar panels have dropped due to technological advances and manufacturing in low-cost labor nations. [Green ETFs: The Way To Invest In Green Energy.]
Todd Woody for The New York Times reports that Silicon Valley start-ups like Solyndra, Nanosolar and MiaSolé dreamed of transforming the economics of solar power by reinventing the technology used to make solar panels and slashing production costs. Now that they have resumed production, the companies are finding a different and more competitive industry, thanks to China, which has driven the cost of solar modules down by 40%. [The Solar ETFs Keep On Shining.]
For more stories about solar energy, visit our solar category.
- Market Vectors Solar Energy (NYSEArca: KWT)
- Guggenheim Global Solar Index (NYSEArca: TAN)
Tisha Guerrero contributed to this article.
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.