Solar Power

Increased demand for solar as a viable and environmentally-friendly method for power generation. Rising oil prices appear to be helping solar stocks. And, as the AP reports in an energy roundup, now may be a good time to think about renewable energy investing:

"Market psychology favors renewables when there are reminders of the "finite" nature of petroleum reserves, said Cowen & Co. alternative energy analyst Rob Stone. ...When oil enters new trading ranges, that has a significant impact on the group," Stone said in a phone interview. "You saw further discussion this morning of whether oil was going to breach $100."

As oil prices continue to cause concern over such issues as refining margins (Chevron - CVX - and Marathon Oil - MRO - are especially hard hit right now), the time for a shift in energy investing may be coming.

Most energy stocks are down right now, even giant ExxonMobile (XOM). But some, like Ascent Solar Technologies (ASTI), are on the rise. And even though SunPower (SPWR) is down right now, it has shown itself to be a strong company fundamentally, especially in terms of solar stocks. Solid renewable energy investing now could be of great benefit down the road. SPWR is solid, and ASTI offers a bargain price. Either of them may good choices in a long-term buy and hold strategy. However, it is important to realize that solar stocks, and other renewable energy investing, tends to be rather volatile - and hence riskier - since most of the companies are new.

Perhaps one of the reasons Big Oil has been reluctant to let gas prices catch up with oil prices is because when people see gas prices skyrocketing, they tend to start thinking about alternative energy. And it seems that this reaction is starting to be borne out as solar stocks gain on the back of rising oil prices.

General Electric Corp. (GE) is strengthening its commitment to clean energy with a $230 million (150 million euros) investment in Spain’s Fotowatio. The investment, made through GE’s Energy Financial Services unit, will amount to a 32% stake in the solar-energy firm.

“By facilitating the growth of one of the solar industry’s leading developers, this investment gives us immediate access to attractive solar markets in Europe and the United States and will form an important part of GE’s broader strategy to become a major player in solar power,” Alex Urquhart, President and CEO of GE Energy Financial Services, said in a statement. “GE has all the right ingredients to succeed in solar: capital, technology, research and ecomagination.”

Ecomagination is GE’s in-house term for its program to help customers meet their energy needs through cleaner technologies such as solar and wind power. The company recently announced that its alternative energy investments had crossed the $4 billion threshold.