The solar power industry is booming right now, and perhaps it will soon translate into success for related exchange traded funds (ETFs.)

A surge in energy prices, combined with generous incentives and tax credits, has given rise to hundreds of small businesses. Most of these are contractors and installers.But some fear that these small business could be primed for a bust, or at least a slowdown.

The main concerns over solar energy is how the energy is financed and distributed, but if larger companies gain traction in this industry, many of the state and power incentives and rebates will disappear, reports Jan Ellen Spiegel for the New York Times.

These incentives are what make this energy affordable to the general public, and also help small businesses tick. Gradually, a disappearance of the 1-3 person business will fade way to larger businesses that can utilize marketing specialists and get competitive pricing from factories and distributors.

But even if the tax credits expire, no one really fears the industry is going to disappear. The energy landscape has shifted drastically.

  • Claymore/MAC Global Solar Energy (TAN), down 23.4% since its April 15 inception
  • Market Vectors Solar Energy (KWT), down 23.9% since April 23 inception

Solar Energy Exchange Traded Funds (ETFs)

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.