Green Energy: Subsidies, Initiatives and New Efficiency Expected to Drive Greater Profits
NEW YORK, January 14, 2013 /PRNewswire/ --
Companies that are researching and developing new and efficient ways to produce renewable energy can expect greater profits in the coming years. Governments are also providing subsidies and initiatives to boost the development and production of renewable energy, fostering accelerated growth within the industry.
The green industry continues to buoy higher as First Solar, Inc. (NASDAQ: FSLR) [Full Research Report][(1)] and SolarCity Corporation (NASDAQ: SCTY) [Free Research Report][(2)] are leveraging the importance both operational and product efficiency. Companies are researching and developing new ways to provide more efficient means of producing renewable energy. The greater the percentage the company spends on R&D, the more opportunities there are for the company to satisfy consumers and drive further growth.
Furthermore, a vast majority of governments support green energy providers, providing an array of subsidies to accelerate growth in the sector. Global initiatives are being set in motion to enable staple markets to shift toward renewable and sustainable energy. There has been a noted increase of investments in renewable energy, primarily in solar and wind energy.
First Solar, Inc. announced that they have entered into a two-year collaboration and licensing agreement with Intermolecular, Inc. to increase conversion efficiency of First Solar's Cadmium Telluride (CdTe) solar cell technology. FirstSolar will utilize Intermolecular's High Productivity Combinatorial (HPC™) platform, designed to increase the performance of CdTe solar cell technology. According to First Solar's Chief Technology Officer Raffi Garabedian, the company is confident that the development program will bring advances and extend the company's leadership in photovoltaic technology. Intermolecular is expected to improve research and development efficiency in the semiconductor and clean-energy industries through collaboration that use its HPC platform, which will allow R&D experimentation to be performed 100 times faster.
SolarCity Corporation has recently announced an update on the megawatts (MW) deployed by the company last fiscal year, as well as Q4 2012. It deployed 156 MW for the year, a 10MW rise above the original 146 MW target of clean energy deployment. It represents a 117% growth over the amount of energy deployed in 2011 (72 MW). Q4 2012 deployment totaled 47 MW. For 2013, the company expects to deploy 250 MW of energy, which is an indicator that the company is expecting further growth.
If consumers continue to see the long-term benefits of renewable energy, green energy companies can expect to have a strong and stable position in the overall market. We anticipate a strong macro trend toward companies focusing on renewable resources and eco-friendly products. Moreover, institutional funds (particularly those catering to the general public such as mutual funds and pensions) are adding corporate responsibility, ethical investing and environmental concerns as priorities when screening for new investments. This change in dynamic within the investment community will create a mass exodus of investment dollars from aggressive cost-cutting companies toward companies focused on ethical approaches to business, consumers and the environment. For further reading, explore our links below.
Reference Links:
[(1)] The Full Research Report on First Solar, Inc. - including full detailed breakdown, analyst ratings and price targets - is available to download free of charge at: [http://www.NationalTradersAssociation.org/r/entire_report/1a8f_FSLR]
[(2)] The Free Research Report on SolarCity Corporation - including full detailed breakdown, analyst ratings and price targets - is available to download free of charge at: [http://www.NationalTradersAssociation.org/r/entire_report/fcd9_SCTY]
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SOURCE National Traders Association
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