Now Is The Time To Believe In Solar Energy

Matt Thalman - Contributor - ETFs - Solar Energy

On May 9th the California Energy Commission approved a proposal to require most new homes built after January 1st, 2020 will be required to have solar panels installed on them. The new regulations will undoubtedly be a boom for an industry that had a rough time in 2017, the first-year installations declined.

The new ruling piggy-backs on a 2013 requirement that all new homes be “solar-ready.” The solar-ready rule indicated that new homes be built with a certain amount of roof space so that a future homeowner had the option to add solar panels at a later date.

The most recent rule will no longer give homeowners or builders the option to forgo the upfront cost of solar panels, which some estimate will be high as $30,000 per home. The most persuasive arguments against the new rule are just that, the additional costs of the home. California is by most measures already in a housing crisis regarding costs; many believe this will only compound the problem.

But, that also leads to some excellent investment opportunities. The solar panel industry is going to see a massive, built-in installation base. In 2017 California saw over 53,000 single family homes built and most would agree that number needs to be higher in a state with an ever-growing population.

On a very conservative basis, that number will grow to 55,000 in 2020. It is currently estimated that only about 600,000 homes in California currently have solar panels. So, to think that number of easily more than double in a few years when all new homes are required to have solar power, it's clear the investment opportunity in solar is huge. And remember, this is just California we are talking about, other states such as Arizona and Florida, (parts of Miami already have) also could pass similar regulations.

So, how do you cash in on this opportunity? Continue reading "Now Is The Time To Believe In Solar Energy"

Energize Your Portfolio With This Alternative Energy Play

Daniel Cross - Contributor - Equities

Oil has dominated the headlines for energy markets this year so you might have missed out on the growth building up in alternative energy. Specifically – solar.

Just take a look at the chart for Guggenheim Solar ETF (TAN).

Chart courtesy of

It's sold off quite a bit from its mid-April highs, but looks severely oversold based on its RSI reading of just 28.52. Still, it's up more than 20% year-to-date and looks like it will reverse course and trend higher from here.

The solar industry may be a volatile market, but it's also the fastest growing sector of new energy capacity for the next year according to a report by Bloomberg. It's expected to grow 30% compared to wind at 12%. According to one source, solar could power over 7.6 million homes by 2016 – a 21 times increase over the 360,000 homes powered by solar in 2009. Continue reading "Energize Your Portfolio With This Alternative Energy Play"