Why Solar Stocks

Jay Owen Green Prosperity, Resource Efficiency, Earth Systems Science

Why Solar Stocks

Regardless of what solar stocks are currently doing the most important thing to remember is that we are just at the very beginning of the growth of the solar industry – the growth curve worldwide is just starting to climb the steepest part of its growth curve what will take decades to get to the top.

The reason we follow solar stocks is that Solar Energy’s long term future is extremely bright. But also keep in mind that we do not just buy any solar related stock, we put all of the solar stocks we like on a “watch list” and when, and only when, our selection system says it is a “buy” do we buy it. Even if it is a very good company, it may not be a good stock, so we have to patiently wait for the time when our indicators tell us it is the right time to purchase the stock.

First – you have to remember that we are still in the very beginnings of the growth of the solar industry and in the beginning this is the natural progression of how industries develop – companies will come and go, there will be mergers and acquisitions, bankruptcies, breakthroughs and maybe even some thoughtful legislative progress in the U.S. – but I would not bet on this last one, unfortunately.

Second – given the current state of climate change and the massive amounts of damage it is starting to cause there is no other rational course of action to pursue than the most abundant form of energy – solar energy.

Third – is the undisputed FACT that there is CLEARLY no other source of long term energy that can remotely supply the world with the energy it will need in the future to grow and prosper.

The table below shows the relative amounts of renewable energy resources that are available on an ANNUAL basis compared to the amount of fossil fuel resources that are currently available on Earth and can be recovered at a “reasonable” economic and environmental cost. As you can see the numbers speak for themselves and the obvious long term solution is renewables.

Annual Renewable Energy Resources & Remaining Fossil Fuel Resources
Note: all numbers expressed in Terrawatt (trillions) hours

Renewable ResourcesAnnual Amount Available
Direct Solar Radiation350,000,000
Wind200,000
Ocean Thermal100,000
Biofuel50,000
Hydroelectric30,000
Geothermal10,000
Tidal1,000
Total Renewable Resources350,391,000

 

Fossil Fuel SourcesTotal Amount Remaining
Coal6,000,000
Uranium1,500,000
Oil1,250,000
Natural gas1,000,000
Tar Sands200,000
Total Fossil Fuel Resources9,950,000

 

Summary:The amount of direct solar energy that arrives on Earth during an average 2 week period, roughly 13,000,000 terrawatt hours, is greater than the TOTAL remaining (9,950,000 terrawatt hours) reserves of fossil fuels (i.e. non-renewable).
Conclusion:Given the overwhelming supply advantage and renewable nature of solar energy the obvious strategy should be to accelerate the development of renewables worldwide as quickly as possible.
Benefits:Enhance national security by lessening the U.S. dependence on foreign oil, create million’s of new domestic jobs, increase domestic product exports, decrease huge cash drain ($800,000,000 per day in 2010) from buying foreign oil and clean up the environment for our children and all future generations.

 

 

Mr. Lynch has worked, for 36 years as a Wall Street security analyst, an independent security analyst an investment banker and private investor in small emerging technology companies. He has been actively involved in following developments in the renewable energy sector since 1977 and is regarded as an expert in this field. He was the contributing editor for 17 years to the Photovoltaic Insider Report, the leading publication in PV that was directed at industrial subscribers, such as major energy companies, utilities and governments around the world. He is currently a private investor and advisor to a number of companies. He can be reached via e-mail at: [email protected]. Please visit his website for the promotion of solar energy – www.sunseries.net