Solar Power: The Most Profitable Solution to the Oil Crisis

Opportunities abound for investors in the energy market right now, just looking at what’s being set in motion globally. The end of the age of oil will not be a disaster if we are prepared for it as investors and consumers. Acceptance is the first step.

At this moment the United States doesn’t have an energy source that would be as easy to produce and transport as oil. Nuclear power can produce electricity, but the remaining rich uranium ore will last for decades, not for centuries. Renewable energy can probably never cover the current levels of global energy consumption or even U.S. consumption. So what is a practical solution right now?
The good news is that the total $16 trillion headed for all the energy markets – including the $10 trillion that will go into electricity – is still just a fraction of the total global gross domestic product (GDP) – only about 1 percent. So making the investment is not only very possible, it’s nearly certain.

The electricity markets are still in their infancy in the commodities world. As with so many other up-and-coming opportunities, you just have to be ready to seize those chances when they come. Speaking of opportunities, alternative energy is another area investors are focusing on, and one of the biggest is solar power.

Although there is so much good news for solar power, there are challenges, too. For example, there’s the lack of silicon, which is needed for making solar panels. A silicon shortage has limited the supply of the panels and frustrated potential buyers. Orders take several months to complete, and prices, after years of floundering, have increased by as much as 15 percent.

The real winners are those companies that benefit from the lack of silicon, primarily producers of less efficient, yet available, thin-film solar panels. Of course, other beneficiaries include companies that have emerging technologies, such as plastic solar cells.

Daily Reckoning