It\u2019s investing-for-dummies 101: find an undervalued industry that\u2019s set to explode, and get in early.<\/p>\n
And why not feel good about where your money is going in the process?<\/p>\n
Enter the solar energy sector, one of Australia\u2019s most promising rising industries thanks in part to the geographical particularities of our beautifully expansive sunny nation.<\/p>\n
More Australians than ever are riding the green wave and powering their homes with solar energy, according to data from comparison infrastructure tech company\u00a0CIMET.<\/a><\/p>\n Internal figures from CIMET, the business that powers our biggest-name comparison sites like\u00a0finder.com.au<\/a>, iSelect, and Cash Rewards, show that searches for solar panels doubled from June 2016 to 2022.<\/p>\n In fact, at least 80% of new housing developments, particularly in Sydney, have solar panels installed.<\/p>\n CIMET also\u00a0points out<\/a> that the average Australian could save around $1000 each year by switching to solar, and will even be paid a feed-in tariff for any surplus solar electricity supplied back to the grid.<\/p>\n For that matter, from October 2022 to October 2023, energy connections with feed-in tariffs increased by over 40%.<\/p>\n Yet Australia has tapped\u00a0less than 5 percent<\/a>\u00a0of its potential capacity for rooftop solar \u2013 so far.<\/p>\n This presents an astronomical opportunity for solar companies, and the investors that back them.<\/p>\n There are currently over\u00a03 million houses in Australia<\/a>\u00a0with rooftop solar, or around 32 percent of eligible dwellings, and yet\u00a0research<\/a>\u00a0shows that residential zones have the greatest untapped potential.<\/p>\n It is\u00a0predicted<\/a>\u00a0that the number of photovoltaic (PV) solar panel systems deployed by households across Australia will increase from 25 million units to over 100 million units by the year 2030.<\/p>\n This is attributed to a perfect storm of favourable factors for the industry.<\/p>\n Government policy designed to help Australia meet its goal of net-zero emissions by 2050 is encouraging the growth of the industry. For instance, the Federal Government\u2019s\u00a0Renewable Energy Target (RET)<\/a>\u00a0policy is designed to ensure that at least 33,000 gigawatt-hours of Australia\u2019s electricity comes from renewable sources by 2020.<\/p>\n Technological advancements in solar panel efficiency and storage capacities are expected to rapidly accelerate the advancement of the industry within the decade.<\/p>\n CIMET also reports that battery prices have taken a beating over the past few years, which is a critical factor to enable complete energy independence for households.<\/p>\n And this will all combine with a rising demand for renewable energy sources that is hardly going to diminish any time soon. As we move towards phasing out coal and gas, Australia\u2019s year-round sunshine practically guarantees that solar will play a leading role in the future energy mix. There is plenty of potential in residential, commercial and utility scale solar farms waiting to be tapped.<\/p>\n So with all fingers pointed firmly in the direction of sustainability, here\u2019s how you can capitalise on the power of the\u00a0sun.<\/p>\n Australia didn\u2019t just invent solar. It is also home to an incredible cohort of startups still leading the way in solar research and innovation, which investors should be following closely.<\/p>\n Take\u00a0CEFC<\/a>\u2013 and\u00a0Virescent Ventures<\/a>-backed startup,\u00a0SunDrive Solar<\/a>. SunDrive has fabricated the world\u2019s most efficient commercial-size solar cell by replacing the silver in solar panels with copper, which drives down price and can generate more energy.<\/p>\n Another startup,\u00a0Sunman Energy<\/a>, has entirely replaced glass in solar panels with a lightweight, flexible panel. This makes it lighter (by 70 percent!) and thinner (by 95 percent!), and therefore significantly easier to install and transport.<\/p>\n Just as crucially, the Sunman Energy panels can be installed on roofs that are unable to support a conventional solar system, freeing up a lot of previously unusable roof real estate. Think trains like Byron Bay\u2019s first solar train and heritage-listed buildings like the Australian National Maritime Museum.<\/p>\n There are also a number of publicly-listed companies making waves.<\/p>\n For instance,\u00a0ClearVue PV<\/a>\u00a0(ASX: CPV) produces clear solar glass that can be integrated into building surfaces like glass and building facades.<\/p>\n It has a range of applications including smart windows for buildings, greenhouses, self-powered public utilities and infrastructure, and self-powered building facades. Critically, this opens up untapped commercial opportunities for solar, where solar use is traditionally lower than residential.<\/p>\n Through ClearVue an entire commercial building can be turned into a giant solar panel offsetting the building\u2019s energy usage \u2013 an enormously valuable proposition for a property manager looking to save.<\/p>\n Genex Power Renewable Energy<\/a>\u00a0(ASX: GNX) also has a growing portfolio of renewable energy solutions, including a 2GW solar project in Queensland, large-scale batteries, pumped storage hydro, and wind.<\/p>\n With a diverse portfolio like this, the energy mix is well integrated and can adapt to the rapidly changing needs of the energy market, offering not just on-demand generation but also storage. The risk tolerance required for investors is also higher due to the diverse mix of technologies.<\/p>\n Tilt Renewables<\/a>\u00a0(ASX: TLT), meanwhile, has a number of renewables projects in its portfolio, including solar farms in Broken Hill and Nyngan, and a number of wind farms across Australia.<\/p>\n This also provides a great entry point to the wind energy market. Wind is relatively underdeveloped in Australia, and with a combination of wind and solar, investment and energy generation is diversified.<\/p>\n In the solar game, technology is king.<\/p>\n So keep an eye out for emerging panel technologies, as well as value-adds and differentiators that go beyond your average solar panels, offering a competitive advantage over others.<\/p>\n Large investors like the\u00a0CEFC<\/a>\u00a0and\u00a0Virescent Ventures<\/a>\u00a0are also backing big research and commercialisation projects like SunDrive Solar and Sunman Energy, so keep an eye on where the experts\u2019 money is going.<\/p>\n Pay attention to the investment thesis or areas of focus of the big funds, as they may provide clues regarding the solar industry of the future.<\/p>\n Finally, governments around the world are also increasingly creating a mix of private and public funding and incentives pushing for better tech and greater solar adoption.<\/p>\n So watch for major government regulatory changes and macro policy trends, as there will likely be more incentive programs and public-private partnerships that open up new opportunities.<\/p>\n In the end, the writing is on the wall. Many experts are currently expecting the hottest summer on record and increasing energy prices.<\/p>\n So now is the time to be investing in companies that will set the world on fire with renewable energy solutions, and actually slow down global warming.<\/p>\n Jeremy Liddle is the\u00a0<\/em>executive director of climate, tech and finance PR agency\u00a0Third Hemisphere<\/a><\/p>\n This article was developed in collaboration with Third Hemisphere, a Stockhead advertiser at the time of publishing.<\/em><\/p>\n This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.<\/em><\/p>\n CIMET and Virescent Ventures were clients of Third Hemisphere at the time of writing.<\/p>\n <\/span><\/p>\n The post Australian solar is charging up investors \u2013 and the ASX party is only just getting started<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Australia\u2019s solar industry is set to explode<\/h2>\n
The up-and-comers<\/h2>\n
The ASX-listed solar companies to consider now<\/h2>\n
What to consider when investing in solar\u00a0<\/h2>\n