Tuesday, October 18, 2016

Investing in solar energy companies

From the standpoint of a conservative investor, it is not wise to invest in solar energy companies.

The solar energy companies do the research, make the solar panels, and sell to the consumers.

The lower and lower cost of production is good for the consumers, but bad for the solar energy companies.

The profitability is not sustainable.

If the solar energy can set up a huge solar farm, and supplies electricity to an entire state or nation, that is a different story.

It becomes a utility company, and not a manufacturer of solar panel.

The profit is recurring since every household needs electricity, especially in the hot summer and cold winter.

That is the time when conservative investors will invest with their savings for a stable dividend.

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