Sun Begins to Shine for Solar ETFs

Government subsidies helped green energy technology get its foot in the door, but lower costs will help the industry compete with fossil fuel. Economies of scale has been the top driver of falling prices – for example, the cost of solar power has plunged to 1/150th of its level since the 1970s and solar installation has surged 115,000-fold.

“GTM Research analyst Cory Honeyman said in an interview with CNBC that utilities are also making significant investments in solar power in states that have no renewable energy requirements, such as many states across the Southeast,” according to CNBC.

Some members of TAN’s lineup remain heavily shorted.

“Solar firms haven’t experienced nearly the same amount of covering as their conventional peers. Two solar firms, Sunpower and Solaredge, both make this week’s list of heavily shorted names. Both have been profitable short targets over the last 12 months as their shares have fallen by 70 percent and 46 percent over this period respectively,” said Markit.

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