Solar Energy Stocks Soar Through 2013
Forbes reported that the average price of solar stock doubled in 2013, and Wall Street does not predict those stocks to simmer anytime soon.
It has not been an easy journey for clean energy companies, but stabilizing prices and better supply and demand has put some wind behind solar energy stocks. This growing popularity for solar energy is expected to continue to surge upward through 2014.
Solar industry revenue is expected to increase by at least 10 percent in 2014, according to Angelo Zino, a research analyst for S&P Capital IQ. ”
This compares to our forecast for a low-single-digit rise in 2013 and follows significant declines in 2012 and 2011,” Zino told pv magazine.
Only a few years ago, things were not looking so good for solar energy in Wall Street. But after a nearly two-year fall for solar stocks between 2011 and 2012, the industry is on the up. Experts cite several reasons for this regained momentum, like stabilizing solar panel prices, more interest in the market, and government incentives.
Solar energy’s market success is proving itself to be both an economic viability and an advantageous investment to fiscal conservatives. Though it is still early to say, there is more than one indication to show that solar will be more than just a short-run fad. Federal and state governments are implementing more policies and incentives that incorporate renewable energies, and more utility companies are working to incorporate solar into the electrical grid.
One California company that has jumped into solar and utility is SolarCity, which builds solar systems and then leases them to the building and home owners on which they are installed. Through long-term lease agreements, SolarCity creates a great business model, which is why its’ stock has fared well on Wall Street.
Check out the stocks that analysts have cited as having a good year in 2013:
Canadian Solar (NASDAQ: CSIQ)—This company has shown triple digit growth—up 772 percent YTD, Canadian Solar has customers in over 70 countries. Beginning 2013 at $3.53, the stock has appreciated ninefold.
Alexandra Branscombe is a reporter with Generation Progress. Follow her on Twitter @alibranscombe.