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Renewable energy stocks rose in December 2007, after the Senate passed a revised energy bill designed to cut the US dependence on imported oil by imposing the biggest increase in fuel-efficiency standards in 32 years.  Particularly, the energy bill raised sixfold the amount of renewable fuels that must be used for blending of products like gasoline, to 36 billion gallons a year by 2022, which gave a strong boost to ethanol stocks.

Renewable energy stocks rose in December 2007, after the Senate passed a revised energy bill designed to cut the US dependence on imported oil by imposing the biggest increase in fuel-efficiency standards in 32 years.  Particularly, the energy bill raised sixfold the amount of renewable fuels that must be used for blending of products like gasoline, to 36 billion gallons a year by 2022, which gave a strong boost to ethanol stocks.

 

With the solar and wind-tax benefits set to expire in 2008, analysts expected an extension of federal government support beyond 2008. Nevertheless, a directive for utilities to derive 15% of electricity from renewables by 2020 was omitted from the bill, representing a negative for solar companies.

 

Despite these, the solar stocks remained strong with a solid outlook for growth, derived mainly from strong demand for photovoltaic panels that is expected to grow by 40% in 2008, high oil prices approaching $100 per barrel and solid support at the States level, where the majority have already established their own alternative energy standards and from the European Union. In addition, analysts expect initiatives that did not pass into the bill to be revisited by Congress in separate bills in 2008.

 

A number of small cap companies are poised to benefit from latest industry developments.

 

Biosolar Inc. (OTC BB: BSRC), a growing solar energy company poised to benefit from both industry momentum and solid product offering, is developing innovative bioplastic solar cell components made from renewable plant sources to help decrease manufacturing cost per watt of solar cells and replace traditional silicon based backsheet materials. During the last three months, the Company prepared the commercial launch of its product line by requesting the Underwriters Laboratory (UL) certification for its bioplastic backsheet material. The certification by UL is required for sales of photovoltaic modules in the US. The solar photovoltaic manufacturers relying on polysilicon semiconductor materials are facing a shortage of polysilicon supply and greater price for the material, since the silicon is an oil derivative product. BSRC's renewable bioplastic films and resins are not subject to the silicon squeeze and rising oil prices. This creates a growth opportunity for BSRC that can provide the photovoltaic cell manufacturers with a substantial cost cutting solution.

 

Meanwhile, Solar Power, Inc.  (OTC BB: SOPW), a vertically integrated manufacturer of photovoltaic (PV) modules in the United States, announced a contract to convert 10 of the Santa Rosa City District schools to photovoltaic solar electric systems, a project worth approximately $23 million. Solar Power Integrators will act as the project construction manager and will also receive a portion of the construction management revenue and is expected to realize approximately $20 million of the total project revenue for these contributions.  The Company intends to use this contract to further enter the promising education system market of California. The Company already reported a 360% revenue growth to near $13.4 million for the first 9 months of 2007, and due to the recently awarded contract, expects to report 2008 revenue of $60 million.

 

SES Solar Inc. (OTC BB: SESI), a European-based developer of cost-effective, high productivity solar panels and solar roof tiles, is emphasizing on high-quality products that can be architecturally integrated into new or existing structures. The Company is set to benefit from strong incentives provided by the EU government to alternative energy companies. To date, France, Spain, Germany and Italy have already approved subsidies and Switzerland is planning to follow suit in October 2008, after years of hesitation.  SES's operating plan is based on consolidating production in a new, specially designed manufacturing facility near Geneva, Switzerland. The new plant, which is expected to be completed in early 2008, will be fully automated and will incorporate innovative manufacturing techniques expected to result in lower labor costs, greater operating efficiencies and higher production volumes.

 

 

About BioSolar, Inc.

BioSolar, Inc. is developing a breakthrough technology to produce bioplastic materials from renewable plant sources that will reduce the cost per watt of solar cells. Most of the solar industry is focused on photovoltaic efficiency to reduce cost. BioSolar is the first company to introduce a new dimension of cost reduction by replacing petroleum-based plastic solar cell components with durable biobased plastics.

 

About Solar Power, Inc.

Solar Power, Inc. operates its own ISO 9001 factory dedicated to manufacturing solar modules and related solar products. Through its wholly owned subsidiary Yes! Solar Solutions, Solar Power, Inc. offers the North American residential and small business market a complete solution through a single brand. Solar Power, Inc. provides turnkey design-build commercial and residential solar solutions through its Roseville, California headquarters and a growing national retail distribution network.

 

About SES Solar Inc.

SES Solar Inc. is engaged in the business of designing, engineering, producing and installing photovoltaic solar modules and solar tiles for generating electricity through conversion of the sun's energy. The Company has developed a new assembly technology for solar panels that it believes will allow for higher quality electrical contacts, better performance and reduced costs.

 

Beacon Equity Research Disclosure

 

The companies that are discussed have not always approved the statements made in this opinion. These reports are for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities mentioned. We are not a licensed or registered broker dealer, investment advisor, analyst or underwriter. Please consult a registered broker before purchasing or selling any securities viewed or mentioned here. Beacon Equity Research and its affiliates have been directly compensated a total of fifteen thousand dollars and one hundred thousand restricted rule 144 shs directly from the company for enrollment of BSRC in this research program and other marketing services.



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