Solar power has been a popular industry this year, as government programs have encouraged the use of solar systems for both residential and commercial buildings throughout the United States.
President Obama recently announced an initiative to clean up U.S. emissions by regulating each state's efficiency and requiring further investment in renewable energy options. Many investors believe that such changes will help the solar industry grow even larger, making solar stocks a popular investment option.
However, as with anything else that depends heavily on policy, the success of solar depends largely on what's to come in the months ahead. Some states may limit solar customers' ability to feed solar to the grid, something that will significantly decrease the value of adding solar technology to homes and commercial buildings. The 30 percent investment tax credit enjoyed by residential buildings that have installed solar power is set to expire at the end of this year, taking with it a good part of the investment tax credit that commercial installations benefitted from as well.
While the change in tax law hasn't been set in stone yet, many worry that the loss of such benefits will weigh on the solar industry.
Despite the many obstacles in solar power's future, many analysts see the industry continuing to thrive. Those who expect policy changes to have a drastic impact on the sector say that there will be an initial drop in solar installations, but that the industry will continue to grow, just at a slower pace. Others say policy worries are overdone, and even without the tax credit system, solar capacity will quadruple by 2022.
For those who believe in a solar revolution, there are several options when it comes to investment in the industry. Here's a look at eight options for solar investors.
1. Guggenheim Solar ETF (NYSE: TAN)
Guggenheim Solar is an ETF that gives investors exposure to the solar industry on a broad scale. The fund is made up of around 25 stocks with ties to the solar space, including those that produce equipment and products for end users, fabrication product manufacturers and service companies within the industry.
Questions about the stability of the industry have caused Guggenheim Solar's price to decline by 22.79 percent, but many analysts believe ...
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