NEW YORK ( TheStreet) -- Several years ago I wrote a couple of articles for TheStreet that were negatively slanted toward investing in solar stocks. I called them a fad. To preface this update, it would be great if things like solar panels on every roof or turning uninhabited desert in Arizona and Nevada into solar farms made economic sense, but for now they don't.
There have been two types of obstacles that have existed for this group and for now there are no signs of improvement.
The first is the extent to which solar companies have relied on tax credits or other forms of subsidy for their customers to buy and install the product. This is not just a U.S. phenomenon but is also the case in Germany, as evidenced by that country's large weighting in the Guggenheim Solar Energy ETF (TAN) and the Market Vectors Solar (KWT).
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV