don barrett

Solar Power

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LDK is 1 of many players in the solar energy field. With the rapid increase in oil prices solar power is again on the front burner. There is no doubt solar will play a part in our future energy sources. But,how much and when is up to the solar companies such as LDK and when the cost basis for solar power is comparable to the public utilities energy cost.
Solar power has been used in the most basic application for centuries. Early civilizations learned to turn their homes toward the direction of the sun to take full advantage of the suns warmth and lighting. The first solar cell was made back in 1883. Solar water heaters were used as early as the 1890s,but faded when electric and gas became available.
Solar power generation has increased from 49 MW in 2002 to 314 MW in 2007 in the U.S. A MW of energy will power 778 normal households for a year. So as you see solar power generation has increased but still provides less than 1 % of total energy consumed in the U.S.
As I stated earlier the biggest challenge for solar companies is to lower the over all cost for solar panels. Most panels are made of silicon which has remained high and at times a supply of silicon may be unavailable due to tight markets. LDK and most of the major solar cell makers use silicon currently, but I think they will have to move away from silicon based cells to become a major supplier of energy.
LDK is looking for sales of near a billion dollars in 2008. In the 4th quarter of 2007 LDK netted 49 million or 44 cents per share. LDK has already sold all of their 2008 production and 90 % of their 2009 production. Most companies such as LDK are coming on line with higher production levels as quickly as possible.
Another major player in the solar arena is FS or First Solar. FS thinks they can compete with traditional electric producers on a cost basis in 2-4 years. But,FS is almost strictly for commercial applications,so home owners will be mostly left out,at least for now.FS is also expecting sales of near a billion dollars in 2008. FS net income grew from 4 million or .07 cents a share in 2006 to 158 million or $2.03 in 2007.
It's hard to argue with the success of some of the current solar panel makers such as LDK and FS. I think the winner will be the company that moves from typical silicon wafers to some of the newer wafers made from another material and the thin cell wafer.
HelioVolt is a private company that makes a cell called CIGS. It is much cheaper to make and it avoids another high cost of solar panels-installation. HelioVolt has a process by where they print the cells onto materials such as glass and other building materials. If HelioVolt can develop a system of panels printed on glass or maybe your shingles or metal roofing,they will revolutionize the solar industry.
The solar companies such as LDK due to their tremendous growth and demand look like short term investments But, the company that can mass produce panels incorporating the technology such as HelioVolt is using will make solar energy affordable for the masses.So if you invest in LDK today,look over your shoulder as something much more efficient and readily available will be out in the near future.