Keys to the Solar Investment Case
- Impressive growth potential – Solar has impressive growth potential with forecasts for $3.4 trillion of solar spending through 2040 and with solar representing 35% of all new global electricity generation installs (Bloomberg New Energy Finance). Solar PV will generate 25% of all electricity globally by 2050, up from 2% today (BNEF).
- Low-cost electricity solution – Solar’s levelized electricity cost has already plunged by 83% since 2010 (Lazard) due to dramatic technology advances and economies of scale. Solar’s cost will plunge by another 71% by 2050 (BNEF), which would make it the cheapest source of electricity by far. Solar has already reached grid-parity in many areas of the world where its low cost now beats both coal and nuclear.
- Government support is only icing on the cake – Solar has become a self-sustaining industry due to the sharp drop in solar costs and has no need for government subsidies or mandates.
- Mission-critical energy solution – Solar energy is one of the very few long-term solutions for the world's zero-carbon energy needs with free fuel (sunlight) and zero CO2/pollution emissions. Solar is also a scalable solution that provides wholesale electricity for utilities as well as distributed retail electricity for businesses and homeowners.
- Jobs, jobs, jobs – Solar is a big employer with 3.4 million global solar jobs (IRENA). Solar provides about 250,000 U.S. jobs, more than the combined number of jobs in the U.S. coal and oil-gas extraction industries.
- Solar-plus-storage provides robust 24/7 energy solution – Solar-plus-storage systems provide a 24/7 source of electricity and solve solar’s intermittency problem. Solar-plus-storage systems are already cost competitive and will become even more so as battery costs plunge by another 52% through 2030 (BNEF).
Advantages of investing in a solar stock fund versus individual solar stocks
Own the global solar sector in one trade - All qualified solar stocks on developed global exchanges are included in the MAC Solar Index.
Longest track record in the industry - The MAC Solar Index was the first solar index for the exchange-traded fund industry with an inception date of March 31, 2008.
Dynamic portfolio - Quarterly index reviews ensure that new and emerging solar companies are added to the index when they meet the index criteria.
Diversification - Reduce exposure to event/financial risk at individual solar companies with index diversification across:
- geography (North America, Europe, Asia),
- solar technologies (thin-film, silicon, thermal),
- solar value chain (raw materials, PV wafers/cells/panels, solar inverters, capital equipment, solar installers and project developers).