Is solar energy beginning to shine again?

ENERGY

Charlie Thomas, head of environmental investment at Jupiter Fund Management, says for the discerning investor, the solar sector is starting to offer long-term potential again.

Five years ago, solar was a star sector in a burgeoning environmental investment arena.  Climate change was a major public concern and solar companies were well supported by a vigorous policy tailwind, especially in Europe. Many companies from across the supply chain enjoyed high margins, while forecasts for a rapid surge in installation rates pushed valuations for some European players 30 to 40 times forecast earnings – dotcom-style highs.  Then came the credit crisis and global recession. Along with the rise of new manufacturers in China and other parts of Asia, the economic downtur...