Risks Facing Today's Solar System Players
SunPower , SolarCity , and First Solar have all seen stock prices soar in 2013 and there appears to be no ceiling to the potential in the solar industry. But there are risks for solar companies, as we've seen play out in just the last few years.
First Solar was once the cost and technology leader, only to see that lead evaporate to Chinese competitors. SunPower now holds the technology lead but a new wave of more efficient product may be on its way.
SolarCity doesn't make panels, but it has a lot of risk in its current business model. If consumers begin buying systems instead of leasing them its entire infrastructure could be upended. Joel South sat down with solar analyst Travis Hoium to see what risks face these leading solar companies in the future.
The energy industry is rapidly changing
Electricity generation used to be dominated by coal in the U.S. but natural gas and solar are becoming the favored sources of new generation in recent years. That presents an opportunity for investors and Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.
The article Risks Facing Today's Solar System Players originally appeared on Fool.com.
Fool contributor Travis Hoium manages an account that owns shares of SunPower and personally owns shares and has the following options: long January 2015 $5 calls on SunPower, long January 2015 $7 calls on SunPower, long January 2015 $15 calls on SunPower, long January 2015 $25 calls on SunPower, and long January 2015 $40 calls on SunPower. The Motley Fool owns shares of SolarCity. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.