Topic: How To Invest

Pat: Please comment on whether you see solar power as a good investment. Also, which companies do you recommend? Thanks.

Article Excerpt

Solar technology continues to advance, but one key drawback to investing in it is that it is still heavily dependent on government subsidies. Many of these subsidies seem likely to continue, at least for now, in China, Japan and the U.S., and that’s fuelling demand from utilities for large-scale solar plants. However, solar subsidies have lost support in many countries, including Germany and Spain. Meanwhile, low prices for oil, natural gas and coal make solar power less cost-competitive. We haven’t found any solar stocks we recommend as buys. However, here’s a look at a leading solar ETF: Guggenheim Solar ETF, $23.75, symbol TAN on New York (Units outstanding: 10.3 million; Market cap: $244.6 million; www.guggenheiminvestments.com), aims to match the performance of the MAC (Melvin and Company) Global Solar Energy Index, which consists of shares of 30 companies listed on stock exchanges in developed countries. The fund’s top holdings are SolarCity, SunPower, First Solar, 8point3 Energy Partners, SolarEdge Technologies, Canadian Solar, Xinyi…