Is Alternative Energy the Hot Sector for February 2014?

By | February 13, 2014

The fact that USA is moving towards energy independence is excellent news for the energy sector. According to the Boston Consulting Group, it will give an edge to the machinery, chemical, and transportation businesses in US with streamlined costs and lower energy bills. On a domestic level, household budgets will be at ease and might even boost consumer confidence in the economy.

Solar Energy- emerging markets in 2014

Is Alternative Energy the Hot Sector for February 2014?

We are more considerate about the increasing participation of alternative energy in power generation. All the alternative energy sources have been receiving an excellent response lately including wind, hydro, solar photovoltaic, concentrated solar power, and biomass and waste energy.

In the third quarter of 2013, the U.S. Solar market installed more solar energy production capacity than Germany.  The solar industry was in turmoil since 2011, but the conditions have improved significantly in 2013. According to the U.S. Energy Information Administration (EIA), 2013 witnessed a 32% increase in the solar energy demand within US and the same is expected to increase at 35% in 2014. We can expect better growth and market support for solar manufacturers in 2014.

Top 3 Alternative Energy Stocks Under Consideration

According to the Obama’s environmental plan (June 2013), there will be more limitations on coal-fired power plants and carbon emission levels of all these plants are under the scanner. A string of actions has followed this plan including the U.S. Environmental Protection Agency’s directives to different coal-based plants to lower this carbon emission.

First Solar ® (FSLR)

First Solar ® is a leading name in the field of photovoltaic solar energy solutions and it has over 8GW solar panels installed throughout the world. At First Solar, it is about integrating all the available solutions within the Solar Value Chain and offer bankable PV solutions to the customers. The company has a market cap of $5.08 Billion and has healthy returns of 57.91% in the past one year. With strict regulations on Coal-powered stocks, we can expect an increase in FSLR in the upcoming days.

SunPower Corporation (SPWR)

If you are an active solar energy investor with an interest in the increasing solar market opportunities, SunPower Corporation should be in your portfolio. In the last one year January 2013 to January 2014, the company has offered returns of 229.66% and has a current share price of $31.12 per share. The company has been working in solar sector since 1985 and has over 100,000 residential and commercial solar panels installed in the US. The third quarter of 2013 was a record quarter in terms of solar panel installations and it had record number of residential PV installations. With an increasing trend of renewable energy, one can expect a similar growth in the upcoming months.

JinkoSolar Holding Co., Ltd. (JKS)

JinkoSolar is another important solar energy solution company to watch out for and it is one of the quickly expanding solar energy firms of the world. The company has is sales offices in more than half of the world including China, Germany, Italy, Switzerland, USA, Australia, Canada, Japan, and South Africa. JinkoSolar Holding has offered returns of over 240.09% in the last one year and has a market cap of $902.86 Million.

Why should you invest in the Solar industry?

In 2013, most of the solar and alternative energy companies witnessed a positive trend, especially in their third quarter results. With healthy growth opportunities in China and the US (tax-assumptions), the solar energy sector is expected to grow in the upcoming years.

In addition to it, solar energy and other alternative energy sources have additional protection against fuel price volatility. Solar energy systems are reliable and offer long-term electricity solutions for both commercial and residential installations. JinkoSolar and SunPower are moving up in the solar energy sector. Solar markets are developing throughout the world, which makes it a lucrative market to invest money.

Another added advantage for solar installation is the low maintenance and transmission cost of electricity. Solar systems are installed on customer’s end and there is hardly any cost involved in transmitting electricity making it an excellent investment. Further, the US Government has become firm towards the improvement in the energy market and promotion of renewable energy sources. On an overall it might be the right time to invest in solar energy and reap the benefits in the upcoming months.

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