by Toby Smith 04/15/08
Corporate use of "off-the-grid" energy technologies is gaining momentum, with 8% of ChangeWave Alliance respondents saying they currently use alternative sources to generate power. Going forward, better than 1-in-5 (21%) say they'll install and make use of alternative energy sources within the next five years.
The shift to alternative energy is great news for solar power, which dominates the landscape.
As the above chart shows, solar is far ahead of other alternative energy options, both in terms of current corporate usage (51%) and future planned users (72%). Wind Power is relegated to a distant second for current (24%) and future users (19%).
Adding to solar's attraction is the near certainty of continued tax credits.
U.S. lawmakers appear likely to pass an extension of a key solar industry tax credit. The bill, if passed, would extend the 30% commercial tax credit by eight years, the residential credit by one year and would remove a $2,000 cap on residential systems. Importantly, utilities would be able to take advantage of the credit for the first time.
Some of the most-attractive companies on our radar that are poised to ride this solar wave are the major photovoltaics manufacturers like First Solar (FSLR), SunPower Corp. (SPWR) and Suntech Power Holdings (STP) - each of which are leading the solar energy industry ever closer to the "Holy Grail" of alternative energy economics -- grid price parity.
For more trading ideas to help you play the energy space, check out Toby's thoughts on LED lighting!
