Smallcap Stocks on Solar Technologys Cutting Edge

By James Brumley

Solar energy does work, and it can be profitable. Thats no longer in question. The next focal point for the industry is going to be making solar power more cost effective, and/or more efficient. A handful of small, publicly-traded companies are working on technological advancements that will not only bring solar energys cost closer to gas or coal energy prices, but also make it feasible to integrate the technology into our current infrastructure.

Below youll find brief descriptions of solar energys next technological leaps, and some stocks of the companies making them happen. They may prove to be outstanding investments.

Taking the Panel Out of Solar Panel

Traditional photovoltaic solar cells are big, fragile, and theyre heavy enough to make them difficult to mount just anywhere. And, they can only be attached or mounted to a large flat surface. That limits their use. To get around this challenge, solar panel paint is being developed. Like any paint, this specialized paint can be installed anywhere, regardless of the underlying shape of the structure being painted.

There are no publicly-traded companies with a significant focus on painted solar panels at least not yet. Like most technologies however, once its proven that it can generate a profit, corporations may start to commercialize a competitive product.

Paper-Thin Solar Panels Make Like Much Easier

If for some reason painted-on solar panels wont work well enough, and theres not enough flat, sturdy surface area to mount traditional (i.e. heavy) photovoltaic cells, the solution is a flexible thin film solar panel. Theyre flat and thin and not rigid. String-ribbon cells also fall into this category.

One of the better-known stocks representative of thin-film panel technology is First Solar Inc. (NASDAQ: FSLR). The companys cadmium telluride thin solar panels cost less than $1.00 per watt.

However, First Solar isnt the only thin-film player. A smallcap company called XsunX, Inc. (OTCBB: XSNX) may actually be able to top First Solars per-watt price with their own ASI-120 (amorphous silicon) solar module. These solar modules are a hybrid choice between expensive, traditional silicon wafer panels and cheaper but less effective thin-film panels. a happy medium.

Another small stock of interest is Energy Conversion Devices (NASDAQ: ENER). Its wholly-owned subsidiary Uni-Solar Ovonic manufactures a triple-junction silicon solar cell that is proving to a vast improvement on already0advanced thin film panels.

Building Better Batteries

As solar energy production has moved past the trial stage and into the application stage, a problem has surfaced " the sun doesnt shine 24 hours a day. To become fully powered by the sun, the energy collected when the sun is shining needs to be stored for use when the sun isnt shining. This is where batteries come in.

Theres an inherent problem with current battery technology though. Most of the batteries capable of handling that kind of power storage are made of solid components, which decompose to the point of uselessness pretty quickly. That may be a mot problem. However, considering these same batteries are also slow to charge, and have a limited lifespan. The answer to the problem is promising liquid-based batteries.

Though the liquid battery to date is only being developed as part of a test at MIT, it shows a great deal of promise. And, once the technology shows real promise, we anticipate for-profit corporations becoming involved with their own versions.

Until that happens, theres a company called Valence Technology Inc. (NASDAQ:VLNC) that may have the best-best solution. Valence manufactures next-generation batteries for automotive, industrial, and even utility power purposes. These could work well when it comes time to store solar " or wind " electricity. Investors looking specifically for a smallcap stock in the battery world may want to look at like EnerSys (NYSE: ENS) and Advanced Battery Technologies Inc. (NASDAQ: ABAT). Both are currently profitable and competitive.

Those are hardly the only battery manufacturers that could become tremendous investments though. There are a couple of dozens of these corporations, any of which could benefit from the solar power paradigm shift.

Bio-Backsheets

Ironically, though solar power was mostly developed to get around the use of petroleum to supply energy, petroleum is actually used as one of the materials in a solar panel. Where? Not the panel itself; those are still made of silicon or similar materials. However, the protective covering for solar panels " called a backsheet " uses petroleum in its construction.

Of course, this means the cost to build backsheets can vary with the price of oil " volatility that most technology companies just cant tolerate. To avoid that kind of price volatility in addition to improving the quality of backsheets, a small company called BioSolar Inc. (OTCBB: BSRC) has designed an effective solution. Rather than use petroleum in backsheets, use a plant material to make what are effectively bio-based backsheets.

The bulk of BioSolars previous work was supplying bio-backsheets for common crystalline silicon solar cell panels. However, the newer copper-indium-gallium-selenide and cadmium telluride panels are growing in popularity and may soon be the new standard. Therefore, BioSolar has also begun to develop bio-backsheets for those kinds of solar panels.

Just a Window? What a Waste.

Many homes as well as most commercial buildings cover a great deal of their surface are for glass. This is partially a matter of convenience and expense, but also serves an aesthetic purpose. More important to the industry though, its a waste of a lot of solar power real estate. What if a window could also serve as a solar panel though, yet still be transparent?

A smallcap company called New Energy Technologies, Inc. (OTCBB: NENE) has found a way to turn that glass into an effective solar panel. A thin layer of silicon nanoparticles covers the glass in question. When sunlight hit these windows, the ultraviolet light is converted into electricity. Best of all, this glass loses very little transparency.

Investors, Listen Up

Solar energy technology is not only on a path to progress, but that path is always changing. For that reason, investors should not only keep up with the stocks mentioned above, but also with the industrys focal points themselves.

We feel smallcap stocks in particular can quickly surface " often without warning - as worthy investments since their respective companies are nimble. Either way though, the industrys projected growth is undeniable, so one company or another is going to benefit from the dollars being poured into the efforts described above.

The best way to remain in touch with these solar technology trends, the companies mentioned, and any related smallcap stocks that may pop up in the meantime, is to sign up for the free Small Cap Network newsletter. We can keep tabs on the progress of the technology, and let you specifically know when and where to invest. - 23226

About the Author:

James Brumley has spent the last two years researching alternative energy stocks and has successfully identified sectors and specific stocks in the alternative energy space that may hold tremendous promise. If you have an interest in learning more about alternative energy stocks, make sure to visit the Small Cap Network web site and subscribe to their free newsletter.