Solar index progresses rapidly

Of the 20 stocks followed in the solar index, 17 are up an average of +9.09%. This strong momentum bodes well for the solar energy industry in general.

There are several reasons for this strong surge, the first being the renewal of postponed solar contracts from last year. With the new solar tax credit available this year, contracts are now moving forward. The second is a possible 30% cash grant in lieu of a solar tax credit, which is being highly touted by the Senate. Among the movers were Applied Materials, up 11.05% for the week, GT Solar International moved up 57.78%, JA Solar moved 11.69% to the positive, while MEMC Electric gained 19.17%; all were gains in the first week of February.

The new administration is doing everything in their power to make sure the solar industry continues to move forward. In the massive stimulus plan, Obama's goal is to double solar energy in the next three years. There are two huge boosts being discussed. The House bill would allow people funding solar installations to get their tax break refunded to them. On the other hand, the Senate bill has a manufacturing bent that would reward U.S. solar manufacturers. Both solutions would be appropriate to stimulate the economy.

To help renewable energy compete on price, officials say the administration wants to revamp energy research and spend more on it, starting with billions of dollars in the pending economic stimulus bill; to create demand for clean energy by forcing utilities to draw from renewable sources such as wind turbines and solar panels; to string thousands of miles of transmission lines to bring wind and solar power to consumers; and to levy a tax on fossil fuels through a nationwide cap on greenhouse gas emission.

Related categories:  Environmental legislation   Solar power and photovoltaics 

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