Tuesday, December 29, 2015

Is the solar industry turning around?

The political news event in Paris a few weeks ago apparently had some major implications for the solar industry. As you may have heard politicians signed an agreement on curbing greenhouse gas emissions and controlling global warming. We won't get into detail about the science behind it which seems to have plenty of research on both sides of the fence, so for now we'll say its inconclusive.

Not to long after Congress included in its budget bill a 5 year extension of the Investment Tax Credit. As of now it appears the solar utility stocks will benefit the most.  They also shot up quite incredibly on the news the last couple weeks.  I think the solar industry overall has plenty of untapped potential as the human imagination works to make it more feasible and cost effective. Either way it's events like this that must be watched as they have profound impacts on stocks. Anything involving energy is definitely going to stand the test of time as humans have acquired an insatiable need for energy since the industrial revolution.

I think for now solar stocks might have put a bottom in. A lot can change within 5 years when the tax credit expires again. For all we know a huge breakthrough could be made in the solar industry, or another one for that matter. Remember there are plenty of people vying to quench our energy thirst.

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