Keys to the Solar Investment Case
- Clean solar energy promotes energy security, public health, and a cleaner and safer environment.
- Solar energy is one of the very few long-term solutions for the world's energy needs with zero operational pollution/CO2 emissions (versus fossil fuels), free fuel from sunlight (versus coal and natural gas fuel costs), and near-zero operational risk (versus nuclear disasters).
- Solar is a distributed source of electricity that helps protects home and business owners from the grid disruptions and from electric utility rate increases.
- $4 trillion in new global electricity generation is needed by 2030 (IEA), which means there is a huge market with decades of rapid potential growth for solar.
- Solar energy has already become a major global industry with $77 billion of sales in 2012, according to IHS, representing compounded annual growth of 33% since 2000.
- Solar energy costs have plunged in the past several years and will continue to decline in coming years in line with improved technology, thus dramatically improving solar economics for consumers and boosting global demand and unit sales.
- Solar is becoming ever less dependent on government incentives due to falling solar costs and is already grid-competitive without subsidies in many geographical areas and in even more areas during peak electricity demand times.
Advantages of investing in a solar stock fund versus individual solar stocks
Own the global solar sector in one trade - All qualified solar stocks on developed global exchanges are included in the MAC Solar Index.
Long track record - The MAC Solar Index was the first solar index for the exchange-traded fund industry and has an established history of more than 5 years.
Dynamic portfolio - Quarterly index reviews ensure that new and emerging solar companies are added to the index when they meet the index criteria.
Diversification - Reduce exposure to event/financial risk at individual solar companies with index diversification across:
- geography (North America, Europe, Asia),
- solar technologies (thin-film, silicon, thermal),
- solar value chain (raw materials, PV wafers/cells/panels, solar inverters, capital equipment, solar installers and project developers).