I don't expect solar power to be used as a replacement for fossil fuels, but I wouldn't be surprised at all if the solar power industry grows in the coming years. Europe has a very vocal environmentalist community, and renewable energy is stressed heavily. Renewable energy infrastructure will only grow in the United States, as well, but not as fast as it will in Europe.
I agree with this statement except, austerity legislation has drastically cut gov't subsidies spent on solar power throughout southern Europe. The company Beems is talking about, First Solar, relies on Italy for 13% of its sales and those sales just aren't going to be there for the next couple years. Just this morning an article was released insinuating that short sellers were moving in on First Solar which is scary for a novice investor.
A stock I do hold shares in sent this in a press release earlier in the week and is somewhat telling of what the real driving forces are in the economic potential of solar.
On the downside, Italy approved a decree earlier this month that cuts spending on generous solar power incentives. Under the new solar decree, a transitional period with gradual cuts in incentives will start from June 1, 2011 and run to 2013, after which the incentives will automatically be linked to reaching a certain level of installed capacity. The decree aims to cap subsidies for solar developers at between $8.92 billion and $10.41 billion per year by the end of 2016.
So I suppose one could see a light at the end of the tunnel, but that's not until 2013, so why seriously invest before then? Also..unless you are comfortable with E.U. politics would you be confident that when 2013 rolls around that business just picks up where it left off?