Why are Solar Energy Projects a SAFE Investment?

       If you are a new investor or you simply are looking around for markets that would be safe to invest in, your choice would most likely be solar energy projects. Why? Well, one reason is because the sun will continue to shine: it currently shines enough rays on the U.S. every day to more than power us for 10 years. 

     Also, solar technology has been a proven and reliable technology. Some solar systems that were installed in the 1970's have lasted far beyond their warranties and are still producing. While it is not a new invented technology, there are improvements recently, which have helped make new systems more reliable. 

      If you are concerned about the quality and efficiency of the solar panel systems, it is most likely that the manufacturers will typically offer 25-year warranties for the equipment, minimum protection guarantees, and insurance to protect against events such as fires or hurricanes. Leading businesses and research groups like DuPont, Standard and Poors, and the Rocky Mountain Institute recently had founded the industry consortium TruSolar. Their goal ultimately is to standardize the risk evaluation process for solar energy projects.

    Investing in solar energy projects are not equivalent to investing in a company's stock. While investing in a business comes risks of the company failing; investing in solar energy projects, on the other hand, would be considered a tangible asset. It's an asset that depends on a proven technology using the rays that we know will keep shining upon it. This means the asset is likely to produce revenue immediately and to keep producing it. 

       Last but not least, solar energy projects, in essence, saves money. With the price of solar energy continuing to fall and costs of fossil fuel is rising, solar energy is poised to become a better investment in the long run. It already has outperformed the S&P 500 in 13 states, and major investors are taking note. 

ABB bets on Solar Energy of $1 Billion

     
     Swiss Industrial group ABB, also known as the world's biggest supplier of industrial motors and power grids, had announced recently on Monday that it had agreed to pay $6.35 per share in cash for Power-One Inc., the second-largest maker of solar inverters which allows solar power to be fed into the power grids. The offer price is claimed to be 57% above Power-One's closing price on Friday, boosted by $266 million in net cash held by debt-free Power-One Inc. However, if the asset value is to be quoted without the cash involved, Power-One's enterprise value would amount to a total of $762 million.
     As solar power is steadily rising to compete with conventional forms of energy such as gas and coal, demand for solar power is also increasing. There is a similar pattern towards solar inverters as well as they are needed to feed that power into large electric grids from commercial panel installations and smaller units found in factories and homes. "We consider the acquisition of Power-One as a smart strategic move for ABB to broaden its solar power portfolio at the right time," Vontobel analysts noted.
     Mainly because of solar power's relatively complex technology, solar inverters are to be one of the last profitable parts of the solar value chain (for makers of solar cells and panels have suffered drastically from the fact that their products are easy to replicate). However, ABB believes that the solar market is set to grow its way out of overcapacity as electricity costs rise and solar power systems make it a more competitive source of energy. "ABB is currently buying into solar energy because it sees a shift in demand towards emerging markets such as China and the Middle East," said Ulrich Spiesshofer, Head of ABB and Motion, a business that includes ABB's solar activities. "Solar is, long-term, the fastest-growing renewable generation market in the world. ABB believes in this market," Spiesshofer claims in a company video.