First Solar, Inc. (FSLR): Will This Be the Breakout Year for Alternative Energy?

The proof is in the projections
It’s pretty clear that solar and wind energy are a small part of the energy profile in the U.S., but they are growing. In 2012, we saw a backpedaling on total renewable energy consumed, but a large part of that move was from less hydro power more than anything else. Last year was one of the largest growth years for the wind sector, mostly pushed along from fears that the wind production tax credits were going to expire. Today, wind represents 6% of all generated power in the United States. Solar is still a minor player in the big picture, but it is expected to double in the next two years.

Several companies are betting that much of that solar growth will come from distributed, or on-site, generation. NRG Energy Inc (NYSE:NRG) and SolarCity Corp (NASDAQ:SCTY) are making a big push to provide individual homes and commercial spaces with solar generation equipment and power-purchase agreements to buy back electricity in times of excess generation. While it may not be an immediate threat, it could disrupt the traditional utility space in the future.

What a Fool believes
The energy space is all about perspective. While the signals are very promising for the alternative energy space, it still has a long way to go before it’s in the same conversation as the big three of oil, coal, and natural gas. Also, with global demand for energy expected to skyrocket, each form of energy will have its own niche. Investors in the energy space should consider taking an “all of the above” approach, because it doesn’t appear that any form of energy will be dying soon.

The article Will 2013 Be the Breakout Year for Alternative Energy? originally appeared on Fool.com and is written by Tyler Crowe.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool. The Motley Fool owns shares of General Electric.

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