The thought that jumps to mind is that solar power isn’t going to be “alternative energy” for much longer.

In spite of the current economic malaise and market downturn we’re navigating through, solar energy is one of the few bright spots (pun intended) in the alternative energy space.

The reason?

• Continued advances in solar panel technology are resulting in cheaper, more efficient panels.
• Government subsidies at both the state and federal levels are making the installation of residential solar more compelling than ever.

Here’s why solar is looking brighter by the day, and a major retailer that could change everything.

The Solar Energy Industry’s Solar Cell Production

For the past few years, the solar power industry has been capacity constrained by the lack of polysilicon, the basic foundation on which chemicals are deposited to produce the solar cells used in panels.

But as in other areas of the semiconductor industry, technology marches on. The newest panels are based on thin-film technology, and don’t require polysilicon. No fewer than 143 companies are involved in some aspect of thin-film panel technology.

Thin-film is fast becoming the new standard in panel technology, and in a few years will render polysilicon panels obsolete. Right now, thin-film panels are averaging about $1.40 per watt, but that number will be halved in a year or two.

That alone will make thin-film panels competitive with their polysilicon predecessors, but panel efficiencies – currently around 9% – are rising, and will likely reach 18-20% in the next few years.

Combined, decreasing costs and increasing efficiencies will soon make solar panels the cheapest power source on the planet.

Like everything else, economics will ultimately drive the solar panel industry, just like it has in the computer industry. And one of the greatest modern companies to exploit economics of scale is getting into the act.

Wal-Mart’s Solar Energy Experiment

Wal-Mart Stores (NYSE: WMT) is already evaluating the feasibility of installing solar energy panels on the roofs of its stores. Consider it “dipping a toe” in the water to check its temperature.

• If an experiment involving a few stores pans out, Walmart could decide to roll out panels to all of its stores. That’s about 35 square miles of surface area.
• Using a very conservative figure of around 3 watts per square foot, Walmart could realistically expect to produce in the neighborhood of 3 Gigawatts of power.
• That would make the low-cost retailer one of the largest power producers in the country.

Now replicate that scenario on every warehouse, and big box store in the country, and you begin to get the idea that solar energy could reasonably provide a significant percentage of the power we use, especially during peak usage times.

Storage when the sun isn’t shining is certainly an issue, but scientists and engineers are already designing load-shifting storage systems that will provide power during times of darkness or on cloudy days.

The entire sector recently got a boost when SunPower Corporation (Nasdaq: SPRWA) announced earnings and blew away analysts estimates.

If Wal-Mart does forcefully enter the solar space, we’re going to see it use its tremendous pricing power to lower the cost of solar energy and gain mass production. The kinds of things only a company of that size and negotiating power can do.

And when that happens, consumers everywhere will be jumping aboard.

Investors who want exposure to the sector should view market pullbacks as opportunities to establish small positions in their favorite solar stocks.

Good investing,

Dave Fessler

Source: A Bright Spot in the Alternative Energy Sector

We desperately need a power source that is clean and renewable. The human race needs to overcome this major hurdle so we can live on and advance our civilization.

The question is, do we want to continue polluting our planet so our children and our children’s children will have to deal with the problem, or do we want to solve it now? We need a “Manhattan Project” type initiative to break our addiction to oil and gas. In the past century, our society has made tremendous advances due to cheap energy from fossil fuels, but the time has come to move on.

So what is the answer? We need a cheap energy source that produces energy without producing greenhouse gas emissions. While wind and solar power are two alternatives, wind is unreliable because wind does not blow all the time, and solar power is still in the infancy stage of development. Wind and solar should be part of the big solution, but we need massive amounts of energy to power our cars and maintain our lifestyle.

The best answer is nuclear power. We have the technology right now to power our planet for millions and millions of years. Nuclear power can produce enough electricity to power all of Earth’s homes and cars.

Another benefit of nuclear energy is that it can be used to turn our oceans’ salt water into fresh water. Humans could have an unlimited amount of clean drinking water. And, the fresh water from the desalination process can be used to farm the desserts and boost our food production.

Okay, I know there are many people out there that hate nuclear energy with a passion. People are scared of all the nuclear waste that is produced and fear a nuclear reactor meltdown. What if I told you about a rapidly developing technology called a “Breeder Reactor” that can actually recycle the nuclear waste into more fuel? Not only would we not have nuclear waste to worry about, but we would have sufficient fuel to power our reactors forever. Nuclear reactor technology has come a long way since the incidents at Three Mile Island and Chernobyl. Today’s new reactors are extremely safe, and the chance of an accident occurring is almost impossible.

Breeder reactors use a mixed plutonium fuel that has “fast” neutrons that prolong the reaction and hold more energy. A coolant like sodium is used to control the internal neutron flux in the breeder reactor. breeder reactors open the door to an infinite amount of fuel for the production of electricity.

Many countries like France, Britain and Japan have already constructed breeder reactors and the technology is quickly improving and reaching its full potential. It is currently more expensive to recycle the fuel than just mining it, but the cost will come down to competitive levels as more breeder reactors come online.

Now that we know nuclear power is safe and produces clean energy, we need to focus on getting away from fossil fuels and start developing this clean energy source. I propose a Herculean effort to start building new nuclear power plants around the globe. We need to get our best scientists onboard to take nuclear power to its full potential. Now is the perfect time to launch this project as switching from fossil fuels to clean energy is a massive project that will create many jobs during this period of global recession.

Imagine a planet with no pollution problems and no energy or water shortages. Picture what mankind can achieve with an inexhaustible and safe supply of cheap electricity derived from nuclear power.

Source: Is Nuclear Power the Answer?

This from Penny Sleuth:

We don’t play politics at Penny Sleuth. Frankly, we can’t agree on politics. But that doesn’t mean smart investors should ignore what Washington’s doing. Some of the largest profits in history spawned from legislation and court rulings.

Take solar energy for example. After the introduction of the Solar Energy Research and advancement Act of 2007, investors watched as solar companies’ share prices exploded.

One of the biggest winners was First Solar Inc (NASDAQ:FSLR). The bill was brought before the House of Representatives on June 19, 2007. Over the next 12 months, First Solar’s shares jumped 300%.

Another was SunPower Corp (NASDAQ:SPWRA). SunPower’s shares blew up 151% in just six months.

Both of these gains can be directly contributed to a small bill being read in the House. This can happen on any particular day with any particular piece of legislation. We never know which bill or act will cause such run ups. But after November 4, we have a pretty good idea.

Obama Profit Opportunity No. 1:
Science’s Most Important Breakthrough in Centuries

While on the campaign trail, Barack Obama called for the ban on stem cells to be peeled back. He said that we have a duty to advance science in any way we can to cure the sick and improve the health of the world.

This should send all stem cell stocks through the roof. But if investors can pinpoint the right biotech/R&D firm, they’ll see the largest of these gains. Potentially collecting triple or even quadruple digit profits.

Fractured Spinal Cord? No Problem

Neuralstem Inc (AMEX:CUR) is an industry leader in Human Neural Stem Cell technology. Simply put, Neuralstem is working on cures for central nervous system diseases. The company currently has four issued patents and 12 more pending. Each of these are crucial to the industry. It limits competition, while providing a lucrative asset for future growth.

These patents cover a specific regenerative process where neural stem cells are administered to the area where a spinal cord fracture occurred. These stem cells grow and heal the fracture, which restores motor functions to the parts of the body where it’s been cut off.

For instance, if someone falls and fractures their spinal cord, there’s a good chance that person will lose control over the lower half of his or her body. In the past, that person would never be able to walk again. With Neuralstem’s technology, a simple injection can restore the person’s control.

Currently, the market values Neuralstem at just $51 million. Shares can be bought for around $1.60. That’s obviously too cheap. It’ll only take one bill, announcement, or speech to send shares flying. It appears that the stem cell ban will be lifted in the first 100 days of the Obama Presidency, so Neuralstem could see a huge boost in early 2009.

Obama Profit Opportunity No. 2:
Fixing Renewable Energy’s Fatal Flaw

There is only a certain amount of time during the day when windmills can produce energy. The average capacity factor for wind power is about 30%. The rest of the time, these windmills sit like giant statues, waiting for the next gust of wind. During that period — the “energy time gap” — no new electricity is going onto the power grids.

The same goes for solar power. The sun doesn’t shine 100% of the time. Even in the vast deserts of the U.S. Southwest in the peak of summer, the sun is up only about 14 hours per day. When it is up, there are problems with cloud coverage. The average capacity factor for solar power is around 25%.

Round-the-Clock Energy Storage

ZBB Energy Corp (AMEX:ZBB) designs and manufactures a special type of fuel cell storage device called Zinc Energy Storage Systems (ZESS). ZBB’s systems are used worldwide in the renewable energy fields. For instance, wind and solar farms use ZESS to store extra energy during peak hours. Then, in off-peak periods (no wind or at night), the ZESS can transmit its stored power to the grid. This system allows for continuous electricity 24 hours a day.

Here’s the best part… It only takes three to four hours to charge a ZESS. That’s plenty of time to store the solar or wind power during peak time. The company sells its systems to wind and solar farms, utilities, and commercial/industrial sites.

Banking on the First 100 Days

Within the first 100 days of Obama’s Administration, the demand will likely multiply. Obama plans to invest $150 billion to help create five million jobs in clean energy over then next 10 years. You can bet that a good portion of that money will be sent to wind and solar farms. Those farms will need to increase efficiency and storage. That’s when they’ll call ZBB.

On top of the spending, Obama has already declared he’ll push for new, strict mandates on energy and efficiency. For instance, he’s calling for 10% of our electricity to come from renewables by 2012 and 25% by 2025.

Obama Profit Opportunity No. 3:
It’s Upgrade Time

Many investors run from the defense industry when they hear a Democrat coming. We think you should jump right in. You see, the largest defense contracts in our nation’s history have come under Democrats. In fact, almost every period of the military buildup has come from a left-of-center White House…with the exception of Ronald Reagan.

As we enter our sixth year of the Iraq War and our eighth year of the one in Afghanistan, our weapons, vehicles, and equipment are desperately overdue for repairs and upgrades.

Whether you are a Democrat or a Republican, you still provide our troops with the best equipment available. It certainly wouldn’t look good for Obama to enter the oval office on day one and cut equipment upgrades to the troops in war zones.

We think he’s going to take the opportunity to “reach across the aisle” and upgrade our military’s technologies and defenses. He’ll want to do that early if he plans to get any of his agenda passed.

Niche Player in a Mega Industry

That’s why we recommend you check out Herley Industries (NASDAQ:HRLY). Herley is a leader in RF microwave and millimeter wave components. These components are crucial to flight instrumentation, weapons sensors, guidance systems, and radars.

The company currently has a backlog of $157 million, with a market cap of just $139 million. Herley’s list of customers include Northrop Grumman, Boeing, Lockheed Martin, and the U.S. government.

While you might not have heard of it, Herley has been around since 1965. It’s been designing microwave devices for the defense industry for over 40 years. The company’s technology has been implemented in such projects as the F-16 Falcon, E-2C/D Hawkeye, and the AMRAAM air to air missile.

This kind of background puts it in the front spot for any future defense upgrades. On top of that, it’s stock is extremely cheap. It’s trading at just 0.72 price-to-book, and 0.63 price-to-sales.

Defense is likely a top priority for the incoming Obama Administration. The time is right to jump in on a niche defense company like Herley.

Source: The Three Best Plays for Obama’s First 100 Days

I am not sure this country should follow the advice of a man that has lost over $2 billion so far this year. But then again, some of the nation’s most powerful men have lost far more than that in just the past few weeks.

If you spend any time watching your living room television set, you have seen T. Boone Pickens discussing his proposed energy plan. The 80-year old has spent over $58 million of his own money to tell the nation it must lose its dependence on foreign oil.

What the white-haired oil barren does not tell you is that his money is not where his mouth his. While Pickens was telling you and I to fund his $100-billion idea, the fund he manages, BP Capital, was invested heavily in crude. And thanks to Pickens’ investing decisions, the fund has dropped in value by over 60% so far this year.

It is no wonder the investing firm’s phones are ringing off their hooks with folks looking to pull their money out of the fund. About half of BP Capital’s investors want out of their positions. Their capital withdraw has taken the fund’s size down to just $400 million.

It is a strong blow to the oil maverick’s ego.

Pickens promises to make the $2 billion back, but it is going to be much, much harder now that he has less funding to work with.

Should have known better

Investing in the energy business is a hard racket. After all, it is one of the most cyclical industries out there. But with decades of experience and several boom-to-bust cycles under his belt, one would expect Pickens to be able to avoid his current situation.

With so much negativity surrounding the investor and his picks, it will be hard for folks to get onboard with his newly proposed plans. As oil prices drop with the slowing economy, expensive prospects like wind, geothermal, and solar power are going to look far less attractive than they did when Pickens started his campaign.

While Pickens is pushing his alternative-energy agenda on the mainstream networks, his philanthropy is much more indicative of the investor’s true thoughts.

Instead of adding more money to his energy investments, Pickens is donating it to his beloved Oklahoma State and its football team. He just wrote a $65 million check earmarked to help finish the school’s football stadium.

Plus, Pickens said he would be returning the $125 million he managed in a hedge fund for the school. When he started the investment, it was worth $165 million.

Oh well, it is the thought that counts.

Source: T. Boone Pickens shows his cards

The first comes from Karl N. and he says…

Charles, First you have to buy into the assumption that fuel prices are realistic and will continue to increase! In reality, there is no reason for them to be where they are.

Second, Ethanol requires no more energy to produce than gasoline. Producers must pump, refine, and transport gasoline. Global hunger increased before ethanol because the American farmers cannot cost effectively operate. Fertilizer, fuel, seed, transport costs, living expenses, land and machinery have all increased substantially since the 1960’s without a significant increase in grain prices. The market will have more grain with the increased production of Ethanol than without it.

Please do not buy into propaganda that Ethanol is not efficient to produce, will contribute to world hunger or will drive food prices up (a loaf of bread uses 4-5 cents of wheat in it).
The truth is that unless grain prices increase more farmers will be forced to quit and food supplies will decrease.

I have to say Karl, that fuel prices are realistic even at today’s price. Granted, a lot of speculation has helped take prices higher. But the truth is that according to the Energy Information Administration, the world’s oil production peaked in 2005.

Sure, more oil is being found. But it’s not being found in easy-to-reach places. It’s all offshore, sands, and shale. Production from these areas should come online in time to replace lost production from older wells. The net result? Flat to slightly higher production in the next five to ten years.

Even with US consumption falling, consumption in China, Brazil and India is skyrocketing. The truth is, if these countries keep buying more and more, then oil isn’t too expensive.

Second, you have to admit that corn-based ethanol isn’t the most efficient way to make energy, right? The US Department of Energy says that corn-based ethanol produces a whopping (note the sarcasm) 26 percent more energy than required for production.

That’s god-awful.

Cellulosic ethanol, on the other hand, could produce up to 80 percent more energy than is required to produce it. That’s much better. But mass-scale production is also far off. (There are a few companies setting up pilot plants. But that’s all)

Now, I agree that global hunger isn’t all ethanol’s fault. I’d place the blame on the emerging economies like Brazil, Russia, India and China. But you have to admit, using farmland for fuel means there’s less farmland available for food. And if there’s less food being made, prices move higher.

In addition, corn-based ethanol was a big reason why corn jumped well over 100% after President Bush first announced the ethanol initiative. The effect is obvious – the ethanol hype is helping prices move higher. And this has been a boon to farmers.

Better yet, farmers are poised to make even more money in the years to come, mainly because of growing global demand for food.

I also received an e-mail from Sam L. that said…

As a seasoned investor I wouldn’t put one penny in green stocks, not now or for the near future. It is all hype and no action.

All hype and no action, Sam? How about geothermal producers that are taking off? Or solar producers which are making profits? Wind producers are doing well, and many high-tech battery manufacturers are on the cusp of inking huge, multi-million dollar revenue generating deals.

If you think investing in clean energy is a bad idea, just take a look at the Market Vectors Global Alternative Energy Fund (GEX) and you’ll see that the sector’s been clearly moving higher. And the PowerShares Global Clean Energy Portfolio (PBD) has been doing the same.

It seems to me that investing in green stocks is a great thing to do. What you want to do is avoid the companies that have no profits… the ones that are using very experimental technologies that haven’t been proven yet. These companies may do well in the future, but you take a huge risk by putting your money on them now.

Google, Chevron and Goldman are all betting that this prediction is correct. This from Bloomberg:

Unlike photovoltaic solar panels that convert sunlight to electricity, solar thermal focuses sunrays with mirrors to heat oil in glass pipes to about 700 degrees Fahrenheit (370 degrees Celsius). The oil turns water to steam, which spins an electric turbine. A solar thermal unit that begins operation in 2010 will produce power at 14.2 cents a kilowatt hour, almost triple the 4.8 cents for a plant using pulverized coal, the Energy Information Administration estimates.

Costs for solar thermal may fall as low as 3.5 cents a kilowatt hour by 2020, according to a report commissioned by the U.S. Energy Department. Meanwhile, coal expenses may rise. Congress is considering limits on carbon dioxide and other greenhouse gas emissions. The purchase of pollution permits may be required under a measure the Senate will begin debating next month.

Chevron, Goldman Sachs, FPL, PG&E and other companies have filed more than 50 applications with the Bureau of Land Management to lease government-owned desert property for solar power systems … Google’s philanthropic division put $10 million into eSolar, a start-up in Pasadena, California. Dan Reicher, a former Energy Department official who manages the unit’s climate and energy initiatives, said there will be more such investments.

The PowerShares Clean Energy ETF (PBW) has more than $1.5bn in assets and is one of the most popular ways to invest in solar, biomass, wind, and geothermal energy, says Brian Hunt in Daily Wealth.

“Common sense tells us when the holy trinity of fossil fuels – crude oil, coal, and natural gas – rise in price, companies that provide cleaner substitutes should also rise in price.

“PBW’s only been around for three years […] But with oil approaching $130 a barrel and clean energy stocks out of favor, expect a rally from the ‘treehugger-approved’ companies of the world.”

“Solar panels won’t be accepted en masse unless the economics of it makes sense,” says Charles Delvalle in Investor’s Daily Edge. “Sure, adoption is growing. But it won’t be mainstream until everyone can afford it. The same goes for wind power.

“With so many solutions not making any economic sense, why is adoption skyrocketing? You can thank the government and their incentives. States are ramping up incentives for clean energy production (like California’s $3.3 billion solar initiative). If it weren’t for government incentives adoption would drastically drop.

“When you combine these government incentives with the whole culture change that’s going on, you have a recipe for amazing growth.”

For the tale of the tape, the TSX Exchange surged 1.64%, while the TSX Gold Index exploded upwards to the tune of 5.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, rallied 1.39% with advancing issuers swamping the declining issues by a 601 to 423 margin with good volume of over 207 million shares traded.

Shares in Yamana Gold continued to move higher following news that company posted a profit of $134.7 million, or $0.20 per share in the first quarter of 2008. Total production rang in at 237,495 gold equivalent ounces at cash costs, after byproduct credits of $124 per gold equivalent ounce. Yamana ended the day up C$1.11 at C$14.92.

Moving in the other direction, FNX Mining tabled earnings of $24.1 million or $0.28 per share for the first quarter, compared to a profit of $30.2 million or $0.36 per share for the same period in 2007 when the nickel price was soaring. FNX ended the day down C$2.26 at C$27.75.

Allied Nevada Gold got a boost after announcing an inferred resource of 5.2 million ounces of gold and 75 million ounces of silver at its Hycroft property in Nevada. The oxide portion holds just over 1 million of those gold ounces in 53.1 million tons grading 0.019 ounce gold per ton. Allied ended the session up C$0.26 at C$5.78.

It was a good day for Minera Andes as the company reported first quarter production of 12,140 ounces of gold and 968,000 ounces of silver from its 49% owned San Jose mine in Argentina. Minera ended the session at C$1.40 for a C$0.15 gain.

Iamgold inked a deal to sell its La Arena copper-gold project in Peru for $47.55 million and a 5.5% equity stake in Rio Alto Mining. Iamgold ended the day up C$0.42 at C$6.25.

Timminco put the short sellers on edge after announcing that its wholly owned subsidiary signed a second agreement to supply solar-grade silicon to Solar Power Industries. Timminco ended the day up C$1.15 at C$24.85.

The gold miners are finally starting to garner some investor recognition as the thought that the bullion price has peaked seems to be dissipating. We will see what Friday trading has in store.

You’ve heard the stories about truckers striking on highways and national “Don’t gas up” days, and now you are starting to hear about farmers unable to fuel their tractors. That’s a major concern as the price of diesel — which is used in over 95% of tractors and other farm equipment — reaches $4.25 per gallon.

Even if you read Kerr’s blurb, you may not be aware of the impacts that fuel and electricity prices have on water supply. We’re talking the powering of irrigation equipment…

Today, dear reader, we have the solution…and one micro-cap with the technology to solve this problem…

**********Time Is Running Out **********

“If the Millionaire’s Market Makes You So Much Money, Why Don’t You Just Keep It to Yourself? Why Release This Information?”

Answer: I DO use my guest pass to make money each and every day. But with 1,633,894 transactions per day, there’s more than enough for you, too.

I don’t want to ever be accused of front-running a recommendation. So here’s my promise to you in plain English — I’ll never personally play the recommendations I give you.

So if you think about it, it’s a win-win. I get to continue doing what I love…while still giving you the guest pass and specific instructions on how you could make money for yourself!

Check it out now…

***********************************

The story of 2007 was solar power. We’ve talked about it a hundred times. Everyone that was interested in the next big alternative energy last year bought every company even remotely connected to solar power. Take for instance First Solar…

As you can see, investors bid the price of this stock up to $267 per share from $28.50 in just a few months. Well, the same is true for this next company I recently stumbled upon. However, this one should outperform the rest this year.

Worldwater & Solar Technologies, Inc. (WWAT: OTC) is a solar technology development company that focuses on farmers’ needs. The company’s lead product, AquaMax, is the simplest answer to the highly complex irrigation problem.

You see, powering the massive irrigation systems of our beloved Great Plains is a huge problem. Sure everyone is focusing on how to bring new energy onto the grids, but no one — that is until now — has thought outside the box (or grids in this case).

AquaMax is a very simple, yet innovative, development. It works like this…

A series of solar panels are set up on the farm, which tie into the power grid already in place. This gives the farmer his own secondary source of power, which juices up the underground water pumps used in the irrigation system:

This does a number of things, which the company’s website does a great job of explaining in this chart: