How to Buy Solar Energy Stocks
Today, the renewable energy market is driven by increasing costs for oil as well as looming fears of oil shortages. Solar energy is one form of renewable energy that has growth potential. Some experts suggest the market may even be bullish. Get in on the action by following these tips for investing in solar energy stocks.
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Instructions
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Minimize your risk by identifying successful green mutual funds that invest in various forms of renewable energy, including some solar stocks. Examples of such funds include the New Alternatives Fund (NALFX) and Winslow Green Growth Fund (WGGFX).
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Focus your investments on companies involved in the production of integral components of solar energy, such as silicon, wafers and cells.
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Check out silicon producers in America, such as SunPower Corp. (SPWR) and Evergreen Solar Inc. (ESLR).
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Seek out companies that make solar cells using thin layers of photovoltaic materials. Two companies focusing on this technology include Energy Conversion Devices Inc. (ENER) and First Solar Inc.
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Explore overseas producers of solar parts. Sun Tech Power Holdings Co. Ltd. (STP) and Q-Cells are both solar cell producing companies. Sun Tech is located in China and Q-Cells is a German company.
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Look for new technologies in the solar field. For example, the California company, Nanosolar, is exploring the use of copper indium gallium selenide (CIGS), which is a cheaper alternative to traditional crystalline silicon.
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Tips & Warnings
Be wary investing too heavily in one company's new solar energy technology. It's still too early to see which technology will be a winner. Instead, diversify with various new solar technologies.
