FSLR- Loving the opportunity to buy this: Check out Smart money article: First Solar Maybe someone forgot to tell First Solar about the recession. Although worldwide demand for solar energy is expected to be flat this year, the maker of solar panels for power plants continues its streak: Earnings are expected to jump about 70 percent this year on a more than 55 percent increase in sales. Combine that with one of the lowest cost structures in the industry and analysts say the Tempe, Ariz.–company’s prospects are as bright as, well, the Arizona sunshine.
Even after all the excitement of recent years, solar energy still registers just a blip on the global energy screen. Worldwide, the solar panels sold last year can generate about as much electricity as one nuclear power plant, says Paul Clegg, equity analyst for Jefferies & Co. But that’s changing fast. Some experts say that as the economy picks up and governments continue to favor clean energy, solar could grow by more than 40 percent a year. First Solar plans to be ready. It plowed $33.5 million into research and development in 2008, more than double the level of 2007. This year it plans to double its worldwide production, manufacturing enough solar panels annually to provide about 1,000 megawatts of electricity. Analysts say this should give First Solar (FSLR: 124.08, +2.54, +2.08%) an edge, as solar technology evolves from a niche product to a more widely used energy source.