Another Reason to Buy Solar Stocks?

Solar stocks were certainly one of the biggest stories of 2007, but will First Solar (FSLR-NASDAQ) and the rest of the bunch be at the head of the class in 2008? Maybe, if stories like this, from Japan, continue to capture the public’s imagination:

The government will aim for 30 percent of all households to have solar panels installed by 2030 as part of its efforts to fight global warming, officials said.

Under the target, the number of solar-powered households would increase to 14 million from the current 400,000, and the capacity of such generation would expand 30-fold from the current 1.3 million kilowatts, the officials said.....A standard panel for 3.7 kw of solar power would produce enough energy for a family of four, but existing equipment for home use is priced as high as ¥2 million and a price reduction, including generation cost, is now a major challenge, the officials said.

Although Sharp Corp. and other Japanese manufacturers produce about half the world output of solar power equipment, their products are mostly for overseas markets. Generation in Japan, including by businesses, totaled 1.71 million kw in 2006, much less than that of No. 1 Germany.

The solar stocks are full of momentum players, many whom have not checked to see if the numbers add up here. But with stories like this hitting the headlines, granularity might not matter for some time.

Simply amazing ramps. Although it is subject to change, it appears Gilder, Gagnon, Maverick Capital and Turner Funds made a killing in First Solar last year.

Solar panels to go in 30% of houses by 2030
The Japan Times

Solar Stocks Get Their Day in the Sun
Business Week

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