Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Trend Forecast 2024 - 15th June 24
Gold Price Consolidating at High - 15th June 24
NVIDIA Stock Market: Price Prediction for the Future - 15th June 24
When Will the Boom/ Bust Rollercoaster End? - 15th June 24
Stock Market Trouble Lies Ahead. Are You Ready For It? - 15th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24
Bitcoin Trend Forecast, Crypto's Exit Strategy - 31st May 24
Zimbabwe Officials Already Looking to Inflate New Gold-Backed Currency - 31st May 24
India Silver Imports Have Already Topped 2023 Total - 31st May 24
Gold Has Done Its Job – Isn’t That Enough? - 31st May 24
Gold Stocks Catching Up - 31st May 24
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Solar, The World’s Most Reliable Energy Source

Commodities / Renewable Energy Jul 11, 2010 - 01:28 PM GMT

By: Investment_U

Commodities

Best Financial Markets Analysis ArticleDavid Fessler writes: Across the northeastern portion of the United States, the expletives are flying!

The reason for it is the stifling heatwave that has held the region in a sweaty, vice-like grip for the past several days. Temperatures in New York, Boston, Philadelphia, Washington, D.C. and Baltimore all cracked triple-digit territory for three straight days this week.


On Tuesday afternoon, the mercury in New York’s Central Park soared to 103 degrees, breaking the record set over a decade ago.

It’s safe to say that everyone is feeling the strain – including utility companies…

Consolidated Edison (NYSE: ED) – the New York power company responsible for keeping the city’s air conditioners humming – is seeing near record levels of power demand. In fact, its usage reading teetered on the brink of new territory – 13,141 megawatts (mW) of continuous demand.

As millions of people scurry for any patch of shade or cool spot they can find, this week’s record-breaking temperatures serve as a stark reminder of the sun’s awesome power.

But the irony of a heatwave like this one is that the cause of the problem – the sun – is also the solution.

As the Mercury Rises, So Should Solar Energy Production

As the sun beats down relentlessly during the summer months, rather than grumble about the heat and sap traditional energy resources to combat it, there’s a greater argument for turning the sun’s power into energy we can use.

And as far as utilities are concerned, there are two big reasons in favor of this…

  • Cost: Like many electric utilities, when Con Edison needs additional power, it uses plants that generally run on natural gas. But natural gas-fired plants are expensive to maintain and utilities pay top dollar for the gas when they need to run them.
  • Equipment: Peak demand can overheat wires and transformers, shortening their lifespan and/or causing premature failure of crucial system components, just when they are really needed.

So what is America doing about it?

A New York State of Mind

Since 2008, when utilities were first able to take advantage of the same solar credits as individuals, several of them put together plans to install solar “peaking farms” of their own.

But while New York does have a solar installation incentive program for residents and businesses alike, it’s a drop in the bucket compared to what’s actually needed. For example…

  • Residential Customers: Receive a lump sum payment of $1.75 per watt up to a maximum of 5,000 watts (5 kW) per site/meter. That’s roughly $8,750 – but it’s not much of an incentive when you consider that the average cost for a 5 kW system approaches $50,000.
  • Commercial Customers: Receive the same $1.75 per watt, but up to a maximum of 50 kW. That won’t amount to much in the way of savings for the average commercial customer.

Not only that, solar installation applications can’t exceed a total of 225 kW in any given month. The reason? The incentive program has limited funds and without additional money forthcoming from an already stretched state budget, the program will likely come to a screeching halt.

As if that weren’t enough, the waiting time for solar permit approvals in New York City is up to a year.

But despite the drawbacks, the city still has a huge amount of urban roofscape upon which to install solar panels.

Con Edison wants the New York Public Service Commission to approve the development of 25 megawatts of solar energy resources in New York City by 2015. However, its proposal is just the beginning. It wants to see upwards of 100 megawatts of new solar capacity installed in its service area – and wants the state to pony up $125 million in incentives to help get the ball rolling.

With the proper funding and streamlining, this could go a long way toward helping the state meet its ambitious renewable energy goals. The question is: Can New York make it happen?

It would do well to look out west because there’s already a viable solar model in place…

Via Germany and Spain, the Solar Revolution Hits Soggy Oregon

When you think of sun-soaked places, Oregon wouldn’t be high on your list.

But that hasn’t stopped the state from devising a simple solar solution. It’s called a “feed-in tariff.” Simply put, this is an incentive paid on the rate of electrical power generated, not on the cost of the system itself.

A similar model is already up and running in Germany and Spain, with both countries launching successful incentive programs in order to jump-start solar energy adoption. They now boast 67% of the entire installed solar energy capacity in the world.

Oregon’s program is off to an excellent start, too. The first phase sold out in just 15 minutes, with 75 winning contracts, according to the Statesman Journal.

Why so fast?

  • Oregon is offering a huge incentive: $0.65 cents per kilowatt-hour (kWh) delivered to the grid via solar panels. But get this: the rate is guaranteed for 15 years.
  • Contrast that to the cost of power in Oregon – between $0.06 and $0.09 cents per kWh – and you can see what a deal it is for panel owners.

The state plans to offer more incentives in October – and you can expect those to sell out just as quickly. With other states taking notice, it’s my opinion that you’ll see more of these types of incentives offered, as opposed to installation cost payments.

How to Play the Solar Stock Tsunami

Having reversed over the past six months, solar stocks have jumped higher over the past few weeks.

In fact, over the past month, JA Solar (Nasdaq: JASO) has shot up by 41%, while Trina Solar (NYSE: TSL) has enjoyed a 29% surge. And both companies are boosting their businesses, too…

~ JA Solar: The firm recently announced that it will buy Shanghai Jinglong Solar Technology. This acquisition will facilitate further expansion of the company’s manufacturing area. And with industry growth projected to surge, it’s going to need all the manufacturing power it can get.

The company also announced a multi-year agreement with MEMC Electronics (NYSE: WFR) to supply solar modules, beginning in the third quarter of 2010.

Commenting on the deal, JA Solar CEO Dr. Peng Fang states: “Our partnership with MEMC greatly enhances JA Solar’s position in the solar value chain, further diversifying our geographic presence and enhancing our order visibility, as well as providing us with access to its large project development pipeline. We look forward to building upon this agreement with MEMC to bring solar energy to the world.”

~ Trina Solar: The company announced a new supply agreement with Southern California Edison. It’s also supplying panels for the largest rooftop solar facility in Queensland, Australia.

The Sun is Still Rising for the Solar Industry

Some people remain skeptical about the prospects for the solar industry – one that has seen its share of false starts.

But that’s to be expected from a growing industry that’s still in its developmental stages. As I’ve said before, once the industry shakeout ends (it’s well underway) and policy makers here begin to follow Germany and Spain’s lead (they are), solar could realize its significant growth potential, which could make previous solar stock rallies seem like small blips.

If you want to participate in what could be the start of the next big solar rally, take a look at the three companies listed above.

Oh, and if you live in the Northeast, find a cool spot and lay low. Winter will arrive soon enough.

Good investing,

Source: http://www.investmentu.com/2010/July/solar..

by David Fessler, Advisory Panelist, Investment U

http://www.investmentu.com

Copyright © 1999 - 2008 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in