If you look out the window at this time in the northeast days are getting longer and the sun shines almost everyday. That is wonderful for most of us, as we go about our daily lives. The sun warms up the skin, the ground and in some places solar panels. A number of years ago, they were expensive and many governments gave and still give subsidies to generate electricity (pay more than its worth, for the greater good), the good news is the subsidies is shrinking every year. In 2016, solar prices fell to the point in countries that count on sunshine it is cheaper to generate electricity from the sun than coal or natural gas or oil. Solar prices are becoming incredibly competitive.

The cost of solar goes down, more and more single family roofs will be covered with solar panels because it is less expensive than to build a new gas plant or coal plant for the utility. They will always need backup, but solar is coming. In countries such as Spain, Chile, United Arab Emirates, India solar is a key to generating electricity and reducing people’s electric bills. In some middle east countries, companies are bidding on providing solar for 2.4 cents a kilowatt.

Linking to dividend paying stocks, in every industry there is competition for may dividend investors owning an utility is part of the package. Whatever the utility can generate at the lowest price and charge a decent return to have continuous revenues is what you are looking for. For utilities were sunshine is part of life, they should be investing in more solar than coal. If not ask why?

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