A how to guide for Australian investors
The solar market has been experiencing very high levels of growth in recent years. In 2006, installations grew 19% to 1,744MW, giving a total installed capacity of 9GW. This equates to about 0.05% of total electricity production. (Cifuentis, 2007) The increasing awareness about climate change, and the growing trend for governments around the world to set targets for renewable energy, is creating the framework for the solar market to expand exponentially.
Germany and Japan already have a well established solar industry. South Korea, China, other parts of Europe and the USA are rapidly taking it up. So how can Australian investors capitalise on this growth sector.
Australians looking to invest in solar energy stocks have limited choice in the domestic market. There are no major players in the solar market listed in the Australian market. There are some small cap listed stocks in the solar space including:
International StocksMost of the large, pure play solar stocks are listed in overseas markets. Germany and the USA dominate. There are also Chinese stocks listed in the USA and London. Australians wishing to access these stocks can purchase them directly or alternatively gain direct exposure to them through CFDs. There are at least 18 pure play solar energy stocks that can be accessed through Australian CFD providers.
Cifuentis, C., (2007), "A Ray of hope: The case for solar energy" Platinum investment management. www.platinum.com.au