Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Is There a Solar Bubble?

Parallels with now-depressed ethanol stocks sure to scare investors

By Nick McMaster, Newser Staff

Posted May 22, 2008 4:01 PM CDT

(Newser) – Stocks in solar-energy outfits are enjoying a sustained rally, but investors should remember the lesson of ethanol, Mark Gongloff writes in the Wall Street Journal. Once-loved ethanol stocks are now widely scorned—mainly because the energy source will never be viable without government subsidies. Still, despite solar’s advantages, shares are far from a sure bet.

Like ethanol, solar could be negatively affected by prices of certain commodities—chiefly silicon, which has been skyrocketing; with its myriad uses, the sun won't likely set on demand anytime soon. And like any stock, Gongloff reminds, a glut of entrants in coming years could diffuse the sector’s gains.

Mark Vargas shows the solar panels on the roof of his home in Santa Clara, Calif., Friday, Feb. 15, 2008. (AP Photo/Jeff Chiu)

Nearly 7,000 Mitsubishi Electric solar panels will provide more than one-third of the Sierra Nevada Brewery's power. (AP Photo)

Solar panels are shown on the roof of the home of former Vice President Al Gore in Nashville, Tenn., in a June 7, 2007 file photo. (AP Photo/Paul Levy, file)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Recession Dims Lights on Solar Sales

Banks, government cut funding for industry

(NEWSER) - After a bright 2008, things are looking gloomy for the solar power industry amid the recession, the Wall Street Journal reports. Banks have cut funds for some projects, and the government of Spain, the second-biggest solar power market, has shrunk subsidies. Solar-cell sales are expected to fall by some 20%, going for $2 per watt, compared to $3.95 last year. More»

Silver Bits Boost Solar Power

Particles allow cells to absorb more light, researchers say

(NEWSER) - Scientists believe they’ve found a way to make less expensive, more efficient solar cells: Just add silver, the Economist reports. Standard cells, which rely on a thick layer of pricey silicon, are costly. Problem is, thinner cells absorb less red light, reducing electricity output by 20%. Sprinkling a few cents’ worth of silver on the surface could solve this. More»

Apple Eyes Solar-Powered Gadgets

iPods and iPhones could soon harness sun's power with new patent

(NEWSER) - Apple is seeking a different kind of moment in the sun, reports Forbes, as the behemoth has filed a patent that would integrate solar cells with its iPods and iPhones. The technology would boost the amount of area available for cells, paving the way for truly mobile gadgets free totally unplugged from the power grid. More»

Sunny Days Here for Green Homeowners

Thanks to subsidies and surplus, going green is paying off

(NEWSER) - Sunny days are here to stay for solar homes with roof-top panels, Forbes reports. Such green abodes can cover electricity costs in warm months and store enough to sell solar power to the grid for profit. Installation is expensive but viable thanks to government subsidies, especially in California, New Jersey and Tennessee; California offers a 30% tax credit for installing the “photovoltaic” panels. More»

Solyndra Almost Scored Navy Deal

Pentagon pulled out ahead of bankruptcy filing

(NEWSER) - Solar-energy firm Solyndra was one of three companies picked for a $1 million Navy pilot program for new technologies—but the Navy cut ties to the firm the day before Solyndra declared bankruptcy. A top investor in Solyndra, RockPort Capital, also sits on the Pentagon's emerging technology panel. When a RockPort principal pointed the Navy to Solyndra, he revealed RockPort's investment in the solar firm, he says, but he didn't tell the military about Solyndra's financial troubles. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Is There a Solar Bubble?

Parallels with now-depressed ethanol stocks sure to scare investors

OTHER STORIES ON OUR RADAR

ethanol • alternative energy • solar energy • solar power • solar cells • stock price • speculation

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Recession Dims Lights on Solar Sales

Banks, government cut funding for industry

Silver Bits Boost Solar Power

Particles allow cells to absorb more light, researchers say

Apple Eyes Solar-Powered Gadgets

iPods and iPhones could soon harness sun's power with new patent

Sunny Days Here for Green Homeowners

Thanks to subsidies and surplus, going green is paying off

Solyndra Almost Scored Navy Deal

Pentagon pulled out ahead of bankruptcy filing

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Is There a Solar Bubble?

Parallels with now-depressed ethanol stocks sure to scare investors

Bookmark & Share

OTHER STORIES ON OUR RADAR

ethanol • alternative energy • solar energy • solar power • solar cells • stock price • speculation

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Recession Dims Lights on Solar Sales

Banks, government cut funding for industry

Silver Bits Boost Solar Power

Particles allow cells to absorb more light, researchers say

Apple Eyes Solar-Powered Gadgets

iPods and iPhones could soon harness sun's power with new patent

Sunny Days Here for Green Homeowners

Thanks to subsidies and surplus, going green is paying off

Solyndra Almost Scored Navy Deal

Pentagon pulled out ahead of bankruptcy filing

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?