Solar Energy Technologys Top Smallcap Companies
Solar energy does work, and it can be profitable. Thats no longer in question. The next focal point for the industry is going to be making solar power more cost effective, and/or more efficient. A handful of small, publicly-traded companies are working on technological advancements that will not only bring solar energys cost closer to gas or coal energy prices, but also make it feasible to integrate the technology into our current infrastructure.
These companies are best understood by breaking down each particular technological advance being attempted, whether it be the materials used, the manufacturing process, or where and how the hardware is installed.
Taking the Panel Out of Solar Panel
One of the key drawbacks of solar panels is not so much cost or effectiveness, but feasibility. There arent always a large number of flat spaces to mount solar panels, and even fewer that face the ideal direction. The solution? A solar panel that is actually applied like paint. It can be installed on any structure that has surface area, and is not limited by the shape of that structure.
Though no publicly-traded stock can be purchased as a way of investing in this paint, dont assume thats a permanent problem. When corporations see that the technology is viable, theyll likely adopt and begin marketing it.
Thin Film Solar Cells
Formerly, solar cell panels were heavy and fragile, and therefore difficult to install " one of their limiting factors. Recent advancements have flattened solar panels to paper-thin widths, without sacrificing efficiency. Best of all, these thin film panels arent rigid like previous ones. That flexibility makes thin-film panels considerably easier to mount without the risk of breaking.
One of the leaders of this technology is First Solar Inc. (NASDAQ: FSLR). First Solar manufactures a cadmium telluride thin film that costs less than $1.00 per watt.
Bigger may not necessarily be better though. Smallcap company XsunX, Inc. (OTCBB: XSNX) believes that its ASI-120 (amorphous silicon) solar module can provide an even lower cost per watt while supplying electricity in a wider variety of geographical environments. The companys thin-film modules find a balance between the common silicon wafer modules, which are more costly, and lower rated power thin film modules, which are fairly ineffective.
Smallcap company Energy Conversion Devices (NASDAQ: ENER) subsidiary Uni-Solar Ovonic also builds a unique triple-junction thin-film amorphous silicon solar cell that could be disruptive to other companies within the industry.
Making It Is One Thing; Storing It Is Another
You dont need to be solar power physicist to figure out the sun doesnt shine 24 hours per day. After sunset, the industry needs to figure out a way to keep the electricity flowing. The obvious solution is storing the power created during the day for use at times when there is no sunlight. How? A battery.
The challenge in storing utility-levels of electricity is simply that current batteries cant do the job well enough. Most modern batteries are still made of solid components which degrade over time, take a long time to charge, and they dont last all that long. The solution may be a newly-developed, liquid-based battery.
The good news is, its the finest minds at MIT working on the liquid battery. The bad news is, you cant invest in MIT. Thats ok though. Once MIT proves their liquid battery is better, for-profit companies will become interested.
Until that happens, theres a company called Valence Technology Inc. (NASDAQ:VLNC) that may have the best-best solution. Valence manufactures next-generation batteries for automotive, industrial, and even utility power purposes. These could work well when it comes time to store solar " or wind " electricity. Investors looking specifically for a smallcap stock in the battery world may want to look at like EnerSys (NYSE: ENS) and Advanced Battery Technologies Inc. (NASDAQ: ABAT). Both are currently profitable and competitive.
That said, there are at least a couple of dozen battery companies that could actually meet the needs created by the continued growth of solar power. Some are better than others, but thats not a function of size.
Bio-Backsheets
Its a little ironic that solar power was largely designed to be an alternative to the use of petroleum, yet petroleum is used to manufacture solar panels. Where? Not the solar collection cells themselves " those are made of silicon. However, these cells are covered by a protective coating called a backsheet, most of which use petroleum in their design.
Of course, this means the cost to build backsheets can vary with the price of oil " volatility that most technology companies just cant tolerate. To avoid that kind of price volatility in addition to improving the quality of backsheets, a small company called BioSolar Inc. (OTCBB: BSRC) has designed an effective solution. Rather than use petroleum in backsheets, use a plant material to make what are effectively bio-based backsheets.
The bulk of BioSolars previous work was supplying bio-backsheets for common crystalline silicon solar cell panels. However, the newer copper-indium-gallium-selenide and cadmium telluride panels are growing in popularity and may soon be the new standard. Therefore, BioSolar has also begun to develop bio-backsheets for those kinds of solar panels.
Windows Not Just For Looking Through Anymore
A lack of transparency clearly limits where and how photovoltaic panels can be used, since a window blocked by a solar panel isnt a window at all. However, not utilizing the surface area of windows " particularly for large, glass-covered buildings " is a waste of potential energy. The solution is a see-through solar panel.
Turning glass into an effective solar panel without sacrificing transparency isnt science fiction for New Energy Technologies, Inc. (OTCBB: NENE). This small company has devised a way to coat windows with silicon nanoparticles that actually convert ultraviolet light into electricity. Needless to say, if an entire building could become a self-contained electricity supply, the implications would be enormous.
Advice to Investors
Given the ever-changing nature of solar power technology, it would be wise to stay abreast of the technology trends described above as much as it would be to continually monitor just the companies. Certainly the stocks mentioned here are among the current leaders in their respective categories, but these organizations really are only as good as their technology. And, that only matters if their products are profitable as well as competitive.
In our experience, the smaller companies and their stocks tend to be better opportunities. These organizations and their management are nimble, and intensely focused (not to mention highly motivated). No matter what though, small or large, dollars are going to flow to some of these companies.
The paradigm shifts in solar powers technology are no small matter, but for serious investors who need details of their commercialization potential, keeping tabs can be tough. Thats why we strongly recommend subscribing to our free newsletter. Well inform you of the industrys advances, and the stocks that can let you tap into that progress. - 23162
These companies are best understood by breaking down each particular technological advance being attempted, whether it be the materials used, the manufacturing process, or where and how the hardware is installed.
Taking the Panel Out of Solar Panel
One of the key drawbacks of solar panels is not so much cost or effectiveness, but feasibility. There arent always a large number of flat spaces to mount solar panels, and even fewer that face the ideal direction. The solution? A solar panel that is actually applied like paint. It can be installed on any structure that has surface area, and is not limited by the shape of that structure.
Though no publicly-traded stock can be purchased as a way of investing in this paint, dont assume thats a permanent problem. When corporations see that the technology is viable, theyll likely adopt and begin marketing it.
Thin Film Solar Cells
Formerly, solar cell panels were heavy and fragile, and therefore difficult to install " one of their limiting factors. Recent advancements have flattened solar panels to paper-thin widths, without sacrificing efficiency. Best of all, these thin film panels arent rigid like previous ones. That flexibility makes thin-film panels considerably easier to mount without the risk of breaking.
One of the leaders of this technology is First Solar Inc. (NASDAQ: FSLR). First Solar manufactures a cadmium telluride thin film that costs less than $1.00 per watt.
Bigger may not necessarily be better though. Smallcap company XsunX, Inc. (OTCBB: XSNX) believes that its ASI-120 (amorphous silicon) solar module can provide an even lower cost per watt while supplying electricity in a wider variety of geographical environments. The companys thin-film modules find a balance between the common silicon wafer modules, which are more costly, and lower rated power thin film modules, which are fairly ineffective.
Smallcap company Energy Conversion Devices (NASDAQ: ENER) subsidiary Uni-Solar Ovonic also builds a unique triple-junction thin-film amorphous silicon solar cell that could be disruptive to other companies within the industry.
Making It Is One Thing; Storing It Is Another
You dont need to be solar power physicist to figure out the sun doesnt shine 24 hours per day. After sunset, the industry needs to figure out a way to keep the electricity flowing. The obvious solution is storing the power created during the day for use at times when there is no sunlight. How? A battery.
The challenge in storing utility-levels of electricity is simply that current batteries cant do the job well enough. Most modern batteries are still made of solid components which degrade over time, take a long time to charge, and they dont last all that long. The solution may be a newly-developed, liquid-based battery.
The good news is, its the finest minds at MIT working on the liquid battery. The bad news is, you cant invest in MIT. Thats ok though. Once MIT proves their liquid battery is better, for-profit companies will become interested.
Until that happens, theres a company called Valence Technology Inc. (NASDAQ:VLNC) that may have the best-best solution. Valence manufactures next-generation batteries for automotive, industrial, and even utility power purposes. These could work well when it comes time to store solar " or wind " electricity. Investors looking specifically for a smallcap stock in the battery world may want to look at like EnerSys (NYSE: ENS) and Advanced Battery Technologies Inc. (NASDAQ: ABAT). Both are currently profitable and competitive.
That said, there are at least a couple of dozen battery companies that could actually meet the needs created by the continued growth of solar power. Some are better than others, but thats not a function of size.
Bio-Backsheets
Its a little ironic that solar power was largely designed to be an alternative to the use of petroleum, yet petroleum is used to manufacture solar panels. Where? Not the solar collection cells themselves " those are made of silicon. However, these cells are covered by a protective coating called a backsheet, most of which use petroleum in their design.
Of course, this means the cost to build backsheets can vary with the price of oil " volatility that most technology companies just cant tolerate. To avoid that kind of price volatility in addition to improving the quality of backsheets, a small company called BioSolar Inc. (OTCBB: BSRC) has designed an effective solution. Rather than use petroleum in backsheets, use a plant material to make what are effectively bio-based backsheets.
The bulk of BioSolars previous work was supplying bio-backsheets for common crystalline silicon solar cell panels. However, the newer copper-indium-gallium-selenide and cadmium telluride panels are growing in popularity and may soon be the new standard. Therefore, BioSolar has also begun to develop bio-backsheets for those kinds of solar panels.
Windows Not Just For Looking Through Anymore
A lack of transparency clearly limits where and how photovoltaic panels can be used, since a window blocked by a solar panel isnt a window at all. However, not utilizing the surface area of windows " particularly for large, glass-covered buildings " is a waste of potential energy. The solution is a see-through solar panel.
Turning glass into an effective solar panel without sacrificing transparency isnt science fiction for New Energy Technologies, Inc. (OTCBB: NENE). This small company has devised a way to coat windows with silicon nanoparticles that actually convert ultraviolet light into electricity. Needless to say, if an entire building could become a self-contained electricity supply, the implications would be enormous.
Advice to Investors
Given the ever-changing nature of solar power technology, it would be wise to stay abreast of the technology trends described above as much as it would be to continually monitor just the companies. Certainly the stocks mentioned here are among the current leaders in their respective categories, but these organizations really are only as good as their technology. And, that only matters if their products are profitable as well as competitive.
In our experience, the smaller companies and their stocks tend to be better opportunities. These organizations and their management are nimble, and intensely focused (not to mention highly motivated). No matter what though, small or large, dollars are going to flow to some of these companies.
The paradigm shifts in solar powers technology are no small matter, but for serious investors who need details of their commercialization potential, keeping tabs can be tough. Thats why we strongly recommend subscribing to our free newsletter. Well inform you of the industrys advances, and the stocks that can let you tap into that progress. - 23162
About the Author:
James Brumley has spent the last two years researching alternative energy stocks and has successfully identified sectors and specific stocks in the alternative energy space that may hold tremendous promise. If you have an interest in learning more about alternative energy stocks, make sure to visit the Small Cap Network web site and subscribe to their free newsletter.
posted by X - Men @ 1:21 PM
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