solar energy stocks

Solar Energy Stocks

For many years, the clamor for alternative sources of energy had been at a fever pitch. Solar energy remains one of the energy variants that has come up by leaps and bounds. However, one of the big reasons why it has not been able to go truly mainstream is two-fold.

It is due to the huge capital costs involved and the fact that the return on investment might show up decades later. Hence, the prevalent lower interests could be the big push that could prove to be a huge blessing for the industry.

Interest Rates

The slow rate of economic growth in the United States over recent years has made the Federal Reserve quite generous with regard to interest rates. The Federal Reserve has halted interest rate increases. That has proven to be a boon for investors who wish to invest in the solar power industry.

So, if solar energy companies are able to get the required financed at the going rate on long term loans, then the total cost of a highly expensive project can be lowered significantly. Therein lies the big opportunity for the industry.

Cheap capital is possibly the biggest boost for any company. But for a high capital intensive industry like solar energy generation, it can be a lifetime opportunity.

Solar Power Stocks to Watch

Now, if the industry does manage to take advantage of this situation with interest rates, then it goes without saying that certain solar energy stocks are going to be in sharp focus. A few companies which are all set to be at the forefront are Sunrun (RUN) and Vivint Solar (VSLR).

The three companies in question are involved in the installation of solar systems and financing, which will directly make them one of the biggest beneficiaries of the current situation. Other important stocks include SunPower (SPWR) and First Solar (FSLR). Which solar power stocks are on your watchlist?

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