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Real Goods Solar, Inc. Message Board

  • pillomejia pillomejia Apr 30, 2014 11:54 AM Flag

    Growth!

    Here's Why the U.S. Solar Market Is Assured of Strong Growth
    By Brandon Workman | More Articles | Save For Later
    April 28, 2014 | Comments (3)

    I first covered the solar sector in May and June 2012, during its darkest days. Since then, the sector has experienced a remarkable recovery, with many share prices having quadrupled or quintupled.

    Many have asked if the sector and specifically two of my favorites -- SunPower (NASDAQ: SPWR ) and SolarCity (NASDAQ: SCTY ) --have room to run. It's important when investing in an industry hit hard by both irrational exuberance and irrational panic to look at the real drivers. Why will this industry grow? Or why won't it?

    As I cover in my recent analysis, this market will continue to grow.

    Catalysts
    There are a few drivers: improving economics, heightened public awareness, climate and environmental concerns, and government support. This last one is what I'll focus on. Much is made of national governments' subsidy schemes -- the 30% Investment Tax Credit here at home and feed-in tariffs for much of the rest of the solar-adopting world. What's often overlooked in the U.S. is the importance of state-level Renewable Portfolio Standards (RPS).

    Present in some 30 states plus the District of Columbia, RPS mandate electricity suppliers procure a portion of their electricity from renewable sources. Further, among these states, 16 (as well as DC) include a solar specific provision.

    In many of these states, that provision mandates double-digit year-over-year growth, with that annual inc

    Sentiment: Strong Buy

 
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