As evidence of the burgeoning solar energy industry, all you have to do is follow one outstanding company–Evergreen Solar (NASDAQ/ESLR). Not only is this company a leader in the marketplace, it has the financial backing, supply chain, and customers to make a very successful business over the next decade.
More and more companies and individuals are buying solar energy panels to supplement their electricity needs. Combined with wind power, many businesses are harnessing Mother Nature’s power to help reduce energy costs. Just take a drive past a large welding operation. Very often, you will see a large windmill in the yard going flat out.
Evergreen Solar has been a hot stock on the market, going from $5 per share last September to over $15 per share this past March. Now trading between $10 and $12 per share, this company still boasts excellent prospects as a business and an investment.
Recently, the company announced that it received its biggest sales agreement in history. Over a five-year period, the company will ship approximately $200 million of its photovoltaic modules to SunEdison, LLC.
SunEdison is headquartered in Baltimore, Maryland, selling solar generated energy at or below current retail utility rates to a diverse client base.
This latest sales agreement is Evergreen Solar’s fifth major contract secured since November 2005. The company estimates that the overall value of its five largest contracts totals more than $600 million over the next five years. The photovoltaic modules for SunEdison will be manufactured at Evergreen Solar’s plant in Massachusetts and at its new 30MW EverQ factory in Thalheim, Germany.
Right now, the alternative energy sector is at the beginning of a long, successful run in the economy. I’d definitely consider a solar energy stock as part of any speculative portfolio going forward.