Solar Power Article Raises More Questions Than Answers
By Willam Trent, CFA of Stock Market Beat
Than Answers
We recently started exploring the solar power industry, noting first that Plantronics (PLT) had installed a new solar power system and later that MEMC was holding up better than other semiconductor equipment suppliers due to its exposure to solar cell manufacturers, who also use silicon wafers. We admit to being new to the industry, so we aren’t up to speed on the intricacies. Therefore, this article raised more questions than answers for us.
Nanosolar Inc., a privately held solar energy company, said on Wednesday it plans to build what it called the world’s largest factory to produce solar cells, in the San Francisco Bay Area. The plant would manufacture about 200 million solar cells a year with a total energy capacity of 430 megawatts, or enough to power more than 300,000 homes, Nanosolar said in a release.
The company… also plans to build a solar panel fabrication plant in Berlin, Germany. The company said it arranged a $100 million financing package for the projects, including $75 million of preferred stock.
Nanosolar and other private solar companies such as Miasole and Heliovolt use a thin-film technology that requires only a fraction of the amount of silicon needed in conventional solar cells.
California is pushing a $2.9 billion program to make the state one of the world’s largest producers of solar power. The “California Solar Initiative” aims to add 3,000 megawatts of solar energy over 11 years through the installation of 1 million solar energy systems at homes, businesses, farms, schools and public buildings. The state currently generates about 100 megawatts of solar electricity, enough to power about 80,000 homes.
Now our questions:
Does Nanosolar’s technology still use wafers?
How does the answer to question 1 affect MEMC?
How costly is Nanosolar’s technology relative to both traditional energy sources and current solar technology?
How expensive would oil have to be for Nanosolar’s technology to be cost competitive without subsidies?
How much sun is required to make solar effective?
We believe solar tech will ultimately create an investment boom that puts the telecom/Internet bubble to shame. However, we think there is a load of time to figure out the answers to these and many other questions before committing to one of the few investable plays currently available.
http://stockmarketbeat.com/blog1/
Than Answers
We recently started exploring the solar power industry, noting first that Plantronics (PLT) had installed a new solar power system and later that MEMC was holding up better than other semiconductor equipment suppliers due to its exposure to solar cell manufacturers, who also use silicon wafers. We admit to being new to the industry, so we aren’t up to speed on the intricacies. Therefore, this article raised more questions than answers for us.
Nanosolar Inc., a privately held solar energy company, said on Wednesday it plans to build what it called the world’s largest factory to produce solar cells, in the San Francisco Bay Area. The plant would manufacture about 200 million solar cells a year with a total energy capacity of 430 megawatts, or enough to power more than 300,000 homes, Nanosolar said in a release.
The company… also plans to build a solar panel fabrication plant in Berlin, Germany. The company said it arranged a $100 million financing package for the projects, including $75 million of preferred stock.
Nanosolar and other private solar companies such as Miasole and Heliovolt use a thin-film technology that requires only a fraction of the amount of silicon needed in conventional solar cells.
California is pushing a $2.9 billion program to make the state one of the world’s largest producers of solar power. The “California Solar Initiative” aims to add 3,000 megawatts of solar energy over 11 years through the installation of 1 million solar energy systems at homes, businesses, farms, schools and public buildings. The state currently generates about 100 megawatts of solar electricity, enough to power about 80,000 homes.
Now our questions:
Does Nanosolar’s technology still use wafers?
How does the answer to question 1 affect MEMC?
How costly is Nanosolar’s technology relative to both traditional energy sources and current solar technology?
How expensive would oil have to be for Nanosolar’s technology to be cost competitive without subsidies?
How much sun is required to make solar effective?
We believe solar tech will ultimately create an investment boom that puts the telecom/Internet bubble to shame. However, we think there is a load of time to figure out the answers to these and many other questions before committing to one of the few investable plays currently available.
http://stockmarketbeat.com/blog1/
posted by douglas mcintyre at 11:54 AM
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