CONTENTS

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1. The Potential for Solar Energy

2. The Federal Push for a Solar Energy Initiative

2. The Technology

3. Solar Energy in the Paradigm Portfolio

3.1 NextEra Energy (NEE)

3.2 Siemens AG (SI)

3.3  Corning Incorported (GLW)

4. Important Information

5. References

THE POTENTIAL FOR SOLAR ENERGY

Solar energy companies have the potential for strong business returns, as well as the ability to provide clean energy for people all over the world. As companies focus on improving existing technology and developing new ones, the future for solar energy brightens daily.

Noted MIT scientist Daniel Nocera, whose innovative work on electric storage has significant future potential, is on record pointing out the profound importance of solar energy:

Solar energy is the only feasible long-term way of meeting the world’s ever-increasing needs for energy, and that storage technology will be the key enabling factor to make sunlight practical as a dominant source of energy.[1]

Storage technology enables the energy collected from the sun to remain in a holding compartment, waiting for demand. Federal incentives, combined with more efficient manufacturing and electric output of solar cells, all bode well for this important clean energy technology.

THE FEDERAL PUSH FOR A SOLAR ENERGY INITIATIVE

With recent announcements from the Obama administration for massive investments in the nation’s solar energy, a new focus has been put onto the development of solar energy and associated technology. The July 2010 announcement from the Obama administration puts $ 2 billion into the solar sector. In his announcement, Obama focused on clean energy production as well as significant job potential.

“After years of watching companies build things and create jobs overseas, it’s good news that we’ve attracted a company to our shores to build a plant and create jobs right here in America. In the short term, construction will create approximately 1,600 jobs in Arizona. What’s more, over 70 percent of the components and products used in construction will be manufactured in the USA, boosting jobs and communities in states up and down the supply chain.”[3] These jobs and energy will come by way of the Abengoa Solar project in Gila Bend, Arizona.[4] Further, the Department of Energy also announced that a 25-square mile solar energy zone would be built in Nevada. According to Energy Secretary Steven Chu,

“The Nevada Test Site is about to play a new role in securing America’s future – but instead of testing nuclear weapons, we will test new solar technologies that will help put America on a sustainable energy path.”[5]

The project in Arizona is just one starting point for the new federal focus on expanding solar energy.

This announcement comes at the same time as Bloomberg News broke a story that China will be heavily investing in solar panels. According to Bloomberg News,

China may double the world’s capacity for making solar panels by loaning Yingli Green Energy Holding Co. 36 billion yuan ($ 5.3 billion) to expand production.[6]

This announcement further illustrates how seriously major global players are taking the solar energy potential. Additionally, the European Photovoltaic Industry Association expects the Asian market overall to grow 9-fold, to 7,500 megawatts of solar generated electricity by 2014.

THE TECHNOLOGY

According to a conference of energy scientists, “Today’s technology allows for the harnessing of solar energy through cells known as solar cells. These are also called photovoltaic cells. Photovoltaic cells are placed in direct sunlight and as the sun hits these cells, a chemical reaction takes place to produce electric currents. These currents are then converted into electricity that can be used to power everyday items or even households.” This energy source has the potential to harness a plentiful natural resource and turn it into a mainstream energy reality.

SOLAR ENERGY IN THE PARADIGM PORTFOLIO

Eight companies listed in the Paradigm Portfolio are players in the solar energy field. Two companies, First Solar (FSLR) and Trina Solar (TSL), have solar component production as their primary business. Other companies are also significant contributors to solar, but have other business areas as well.

NEXTERA ENERGY (NEE)

The only utility recommended in the Paradigm Portfolio, NextEra is a Florida based company that is the largest generator of solar energy in the country. NextEra has several solar farms in California’s Mojave Desert, with a peak generating capacity of 310 megawatts. They are applying this experience to 3 projects in development, which if built would provide an additional 875 megawatts of clean solar energy. This buildout would provide electricity to about 220,000 homes at peak generating power, offsetting over 2 million tons of carbon annually.

SIEMENS AG (SI)

Siemens AG, a German based company, is strongly exploring the energy potential of solar power. Siemens has supplied a 64-megawatt turbine to a solar-thermal power plant in Nevada, supplying environmentally friendly electricity to around 14,000 households. This is only one of several business areas in the solar energy field that Siemens provides across the globe.

CORNING INCORPORATED (GLW)

Based in New York (Corning, NY, to be exact), this $5.3 billion-a-year company is one of the world’s leading silicon-based materials providers. It has a vested interest in promoting the production of solar cells, most of which are made from polycrystalline silicon. Corning has proceeded aggressively, committing $1 billion over the next four years toward expanding polycrystalline silicone capacity.

In 2010 Corning announced a venture with Reis Robotics on a new project that, “… works in conjunction with Dow Corning® PV-6100 Encapsulant Series, which provides protection to solar cells in a panel and can replace commonly used ethyl vinyl acetate resin. The liquid silicone-based material targets outperforming incumbent materials in durability, module efficiency, and manufacturing efficiencies providing an improved total cost for solar cell modules.” This increased efficiency will be extremely attractive to companies trying to produce solar cells that compete economically with other forms or electric generation.

IMPORTANT IMFORMATION