What you need to realize about solar stocks

Solar Industry has made a drastic comeback in recent years and has created a niche market for itself instead of competing with the Oil and Natural Gas resources for energy construction. Solar energy generation from solar panels have been made comparatively affordable than its initial cost due to decline in photo-voltaic cost and vast production by Chinese manufacturers. Solar energy production is way easier than other energy production from the other resources due to huge infrastructure involved. Solar sector is very recent and has taken only two and half years to get set for growth.

Investors should consider numerous things about the solar industry and solar stocks before taking their stand in the sector. First of all it is very essential to know that solar energy can not only produce electricity but can be used for heating and cooling. It is getting very popular with household utilities and not only rich but middle income people are also investing in solar energy. This has made the industry very attractive and it is on its ways to growth.

It is very essential to realize that around 75% of photo-voltaic installation in all over the word has been done in past two and half years and price of solar panel installation for US has been down by around 14% in 2012. The price of solar panel is slashed to half from what they were in 2008, which makes 100 times price decline from solar panel price in 1977.  This has been the reason that 21% more solar modules have been imported in second quarter of 2013 than second quarter of 2012. These are facts which indicate positive outcome and performance of solar sector now and in years to come.

Solar investment bonds have been very profitable for past years and investors have started realizing their potential to return value. Return on Investment (ROI) for solar power is far better than any other investment. Homeowner gain good return on investment when compared to investment in S&P 500 stock index in more than 25% states. In more than 75% states solar investments better returns than 30 year Treasury bonds. And return on investment from solar investment for 86% states are higher than 5 year Certificate of deposit returns.