There has been a boom in accessing oil from shale which has been great for the economy, giving domestic energy towards self sufficiency and made money for many people connected to the oil industry. Similar to every commodity, too much of a good thing means lower prices and the shale industry is doing very well. Oil prices have dropped and there are concerns which is probably the reason why interest rates have not gone up. In a related article, Carl Mortished writing in the Globe and Mail – is solar having its shale moment? Thanks to technology, solar panels are decreasing in price which is one of the reasons why my home is being outfitted with them this year. With more homes being fitted with solar panels, there are opportunities for investors. Mr. Mortished believes 3 factors made the revolution of shale from oil possible. These were entrepreneur behaviour and innovation, market demand (high oil prices) and human aspiration. These 3 factors play well for solar power systems – energy self sufficiency is in public policy for hundreds of years – the ability to generate electricity is a good fit. Solar power systems have been falling in price and should fall another 40% over the next 4 years which means they cost less and bringing in extra income from your home will be the normal thing to do. Human incentives, fears, and aspirations are powerful and can drive economic policy in a way that high level policy can not. It is the human capacity under pressure to find solutions and seek gratification that will bring about the solar revolution.

Linking to dividend paying stocks, as the price comes down whether you pay for your solar power system or go through a 3rd party, solar panels will generate an income to offset or ensure your electricity bill is nil or maybe even positive cash flow. As costs fall the equation looks like a bond or guaranteed dividend payment. At some point in time, the biggest home builders will buy a solar company because people will expect their homes to have solar panels. Increasingly there will be greater opportunities to make money in the sector. The 3 factors from the article entrepreneur behaviour, market demand and human aspiration can be applied to any emerging industry, just ensure there really is market demand.

There are more questions than answers, till the next time – to raising questions