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.
Below youll find brief descriptions of solar energys next technological leaps, and some stocks of the companies making them happen. They may prove to be outstanding investments.
Paint On Solar Panels
Traditional photovoltaic solar cells are big, fragile, and theyre heavy enough to make them difficult to mount just anywhere. And, they can only be attached or mounted to a large flat surface. That limits their use. To get around this challenge, solar panel paint is being developed. Like any paint, this specialized paint can be installed anywhere, regardless of the underlying shape of the structure being painted.
As of right now, for-profit companies havent performed any of their own R&D of paint-on solar cells. But, as the idea becomes better proven, publicly-traded companies are apt to dive into the idea.
Flexible Thin Film Solar Panels
If for some reason painted-on solar panels wont work well enough, and theres not enough flat, sturdy surface area to mount traditional (i.e. heavy) photovoltaic cells, the solution is a flexible thin film solar panel. Theyre flat and thin and not rigid. String-ribbon cells also fall into this category.
First Solar Inc. (NASDAQ: FSLR) is one of the companies leading the thin-film effort. The companys cadmium telluride panels cost less than $1.00 per watt to make, which is approaching comparability with photovoltaic cells.
However, First Solar isnt the only thin-film player. A smallcap company called XsunX, Inc. (OTCBB: XSNX) may actually be able to top First Solars per-watt price with their own ASI-120 (amorphous silicon) solar module. These solar modules are a hybrid choice between expensive, traditional silicon wafer panels and cheaper but less effective thin-film panels. a happy medium.
Another entry into the thin-film arena is Uni-Solar Ovonics triple junction thin film solar cell, which is quickly proving to be very cost effective. The company is wholly-owned by smallcap company Energy Conversion Devices (NASDAQ: ENER), for interested investors.
Making It Is One Thing; Storing It Is Another
For solar energy to really be functional, it has to supply power even when the sun isnt shining. but the amount sunshine we receive is one thing we cant improve. The solution to the problem is simple ” a battery that stores this electricity. Thats easier said than done though.
Theres an inherent problem with current battery technology though. Most of the batteries capable of handling that kind of power storage are made of solid components, which decompose to the point of uselessness pretty quickly. That may be a mot problem. However, considering these same batteries are also slow to charge, and have a limited lifespan. The answer to the problem is promising liquid-based batteries.
Though the liquid battery to date is only being developed as part of a test at MIT, it shows a great deal of promise. And, once the technology shows real promise, we anticipate for-profit corporations becoming involved with their own versions.
Thats not to say investors have to wait for the liquid battery to become commercialized though. Several solid-component battery manufacturers are producing products that still meet current demands. One of them is Valence Technology Inc. (NASDAQ:VLNC), which has a great deal of the large-capacity battery market the kind that utility companies would be interested in. Advanced Battery Technologies Inc. (NASDAQ: ABAT) and EnerSys (NYSE: ENS) are also key players in the battery market, and could play a major role as the need for power storage is increased.
Just to be clear though, there are many, many battery companies. Even if only a few of them choose to dive into the solar power market, investors still stand to do very well with the best of these stocks. The size of the company isnt part of the success equation ” its the functionality of the battery.
Bio-Based Backsheets Cheaper Than Petroleum
Even though one of the key goals of solar power is to rid ourselves of dependence on petroleum, theres a bitter irony in the fact that traditional photovoltaic panels actually require petroleum to be manufactured. How? Not in the power cells themselves, but solar panels use petroleum in their protective covering called a backsheet.
The problem? Backsheets are expensive enough as is, but the cost of the back sheet can skyrocket if crude oil prices move upward. The alternative to expensive petroleum-based backsheets is bio-based backsheets. In bio-backsheets, plant materials are used instead of petroleum, which can significantly lower the cost of the entire panel module. Smallcap company BioSolar Inc. (OTCBB: BSRC) is the leader of the bio-backsheet advance.
BioSolar had been primarily focused on backsheet technology for the most common crystalline silicon (C-Si) photovoltaic solar cells the markets biggest seller as of right now. However, copper-indium-gallium-selenide (CIGS) and cadmium telluride (CdTe) thin-film panels are quickly becoming competitors of C-Si panels because of their similarly-low costs and impressive power production. So, BioSolar has recently begun work on bio-backsheets for CIGS and CdTe thin panels as well.
Windows Not Just For Looking Through Anymore
Many homes as well as most commercial buildings cover a great deal of their surface are for glass. This is partially a matter of convenience and expense, but also serves an aesthetic purpose. More important to the industry though, its a waste of a lot of solar power real estate. What if a window could also serve as a solar panel though, yet still be transparent?
New Energy Technologies, Inc. (OTCBB: NENE) is working on the development of a technology that would adapt the glass used in home and office windows. The windows would essentially become panels capable of generating electricity from solar energy without losing significant transparency. How? Thin films of silicon nanoparticles would be joined with the glass, and when ultraviolet light is absorbed it could be converted into electrical current.
Advice to Investors
As enticing as some of these afore-mentioned companies may be, bear in mind its ultimately the technology that will determine their profitability. While these stocks are presently the most interesting, be vigilant about finding the companies that will actually reach the proverbial finish line first. At the same time, remember the best technology is one thing, but profits may be another.
Will it be small companies or large companies that benefit from solar powers inevitable growth? It doesnt entirely matter, but weve found smaller companies and their stocks are better best when it comes to breakthrough research and development.
The best way to remain in touch with these solar technology trends, the companies mentioned, and any related smallcap stocks that may pop up in the meantime, is to sign up for the free Small Cap Network newsletter. We can keep tabs on the progress of the technology, and let you specifically know when and where to invest.
