Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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How to Own
a Piece of the +800% Growth Offered by the Solar Industry |
Published:
October 27, 2008
The U.S. consumes
roughly 20 million barrels of crude oil per day. Most of that
oil must be imported -- with the U.S. importing close to 14
million barrels of oil per day, 70% of its total consumption.
America's oil import dependence has been steadily increasing
over time, roughly doubling since 1980.
Petroleum and oil-derived products account for 40% of America's
total energy use, and that dependence is costly -- at $90 per
barrel of oil, U.S. imports cost the country some $500 billion
annually.
As a result, the search is on for new sources of energy that
could power the nation and reduce dependence on imported fuels.
There are many partial solutions to this problem -- for example,
the U.S. is nearly energy independent in natural gas, and
natural gas can be used to power vehicles or run power plants.
But some of the most often promoted long-term solutions are
alternative energies like solar and wind power.
Car companies the world over are responding to the rapid run-up
in oil prices by introducing new lines of plug-in hybrid and
electric cars. Charging these vehicles will, of course, require
more power. Many hope some of that power can be generated with
renewable energy technologies, thus reducing dependence on
foreign oil.
There are also other motivations for pursuing renewables. One is
clearly environmental considerations. Coal accounts for about
22% of total energy use and a staggering 51% of America's
electricity generation. Coal is cheap and the U.S. has plenty,
but it's also the dirtiest fuel of all. Sulphur by-products
produced in coal combustion produce acid rain. Coal is also a
leading global source of carbon dioxide emissions.
Renewables could help to replace some of that coal dependence.
And because renewable power sources produce no pollution or
greenhouse gas emissions, heavier reliance on these technologies
would help meet increasingly stringent global environmental
regulations.
Currently, renewables account for about 7% of total U.S. energy
use. Some 89% of that renewable energy comes from two sources:
biomass generation, such as from burning municipal waste, and
hydroelectric plants. Solar photovoltaic (PV) plants -- cells
used to convert sunlight into electric energy -- account for
just 1% of U.S. renewable energy use, and just less than 0.1% of
total U.S. energy consumption.
But just because solar power currently accounts for only a tiny
portion of U.S. power generation doesn't mean it's an unworthy
investment. It's all about growth.
According to the Energy Information Administration (EIA),
shipments of PV cells and panels have jumped more than +1,500% in
the past decade. The EIA expects that trend to continue, with
total power generated from solar projected to increase more than
+800% between 2006 and 2030. That's double the pace of growth
projected for the wind power industry. |
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And while photovoltaic technology is unlikely to replace oil,
natural gas or coal, the growth in demand for the technology
puts these commodities to shame. According to the EIA, U.S. oil
demand will only increase by +9% between now and 2030 while coal
and natural gas demand will grow +31% and +3% respectively over
the same time period.
The government heavily subsidizes growth in solar PV technology,
and a new law passed as part of the $700 billion financial
stabilization package helps to solidify those subsidies. Inside
the bill that was ultimately signed into law, a 30% solar
investment tax credit was extended for eight full years. In
addition, the tax credit was widened to include electric
utilities, as well as renewable energy companies selling power to
utilities.
Prior to the extension in the financial stabilization bill, the
investment tax credits for solar had to be renewed once every
year. That created significant uncertainty surrounding the
industry's growth -- solar providers had to worry each year if
the credit would be passed. Those looking to install PV cells
would sometimes wait until the credit was passed before
investing. The long-term extension of the plan should help to
add certainty to the PV business.
Meanwhile, the solar power industry goes far beyond the U.S. market. Growth
overseas is just as impressive as in the U.S., if not more so.
Many countries, including Germany, Spain and Greece subsidize
solar using what's known as a feed-in tariff. This structure
forces utilities to buy power generated using solar PV
technology at rates favorable to generators.
-- Paul Tracy
Editor
StreetAuthority
Market Advisor
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receive in-depth guidance on today's leading investing
opportunities each month, plus access to five model
portfolios, please subscribe to Paul Tracy's premium investment
newsletter -- the StreetAuthority
Market Advisor. |
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
and you don't have to worry about oil prices, automaker bailouts, or
what the Fed is up to -- because every "bad" economic development
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Go here to learn about Amy's simple investing strategy.
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