Thursday, October 27, 2016

Solar Energy...who will catch the biggest wave?

The solar renewable energy industry has been bearish and surprisingly sluggish since the advent of photovoltaic systems hit the market. Investors have lost 40% on average when trying to join this meritorious sector, and this has had a stagnating impact on newer investors who are looking for investment venues in the renewable energy sector. Despite the adverse pecuniary effect, industry data shows otherwise. The price for installing solar panels has dropped 40%, meaning middle-class homeowners can now consider renewable energy options. In tandem, demand has increased in equal magnitude. Prognostics indicate that the industry will double in two years, and this gets me wondering about what solar company will catch the biggest wave. Maybe those losses can be justified by the inconvenience of picking the fruit before it's ripe enough to eat. India and China are at the forefront of this movement, and it is safe to conclude that the U.S. will look to follow their path, perhaps out-pacing them. Sunedison, one of the biggest PV installers just recently filed a chapter 11, right before they intended to acquire Vivint Solar, which was struggling to stay afloat in the 2015 solar drought. This acquisition did not take place, and Vivint, after their stock fell through a trapdoor at -74%, are looking to expand into the growing demand for PV systems in Texas. They're currently undervalued and i suspect they're at trading at an attractive price. I am looking to invest in Vivint Solar, and ill make my final decision after they release their financials on November 8th. They are planning on switching their marketing strategy from door-to-door sales to digital. A wise move indeed, since this technique has not been too promising lately. Solarcity (SCTY) currently at 35% market share, will adopt this strategy as well. To cut it short, this industry with no doubt will grow, and i honestly think a diligent search for that small company that will reap the most rewards from this growth, is worthwhile. Leo's documentary about climate change could in fact create a fad that will have a surging effect in this sector. Of course this is mere conjecture, but i don't think we're abandoning reason here. This serves some discussion! What are your thoughts?

Industry Data by Solar Energy Industry Association http://ift.tt/TSMjRB



Submitted October 27, 2016 at 07:29PM by imfromwhoreisland http://ift.tt/2fkSHDm

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