NASDAQ 5000 And Solar Power

A renaissance is occuring in Silicon Valley . Only this time the silicon is being used for new and cheaper silicon solar panels. The recent landmark California legislation that mandates a 25% reduction in greenhouse gases back to 1990 levels is the catalyst. Also there is the geopolitical backdrop of an unstable Middle East and the resulting high oil prices . Alternative energy, particularly solar energy, is viewed as the response to this challenge. Technology is now in hand to bring solar energy pricing down to be competitive with the $ 1 trillion electric grid and other fossil fuel options.

Wall St. has introduced innovative solar panel partnerships that General Motors, Google and others have signed on. It goes like this. Investment bankers pool capital from investors to purchase solar arrays that are placed on roofs at GM for example. The bankers then get long-term commitments from GM to purchase the power that is generated. What makes it work is the power is offered at below alternative market rates offerd by utilities and the expense of the arrays are payed by someone else. The capital pool gets a return on it's investment and also receives tax credits and all have done something good for the environment. Another bonus are the huge markets that will be developed in trading carbon pollution credits. This is another monetary return to the investment pools.

This is a sea change in the American industrial way of doing business. It's potential is enormous. Just think of it. The retooling of California and the world from a fossil fuel power source to a clean and stable and eco-sensitive power source- the flipping of an 18th century industrial revolution to a 21st century eco-sustainable base. And most of the jobs will not be outsourced.

Incidentally the NASDAQ is the place to take advantage of this budding opportunity. It good easily see it's old high of 5000 within a few years.