With the fossil fuel prices rising dramatically and more signs pointing to Biden announcing executive actions to fight climate change, investors are placing bets on which technologies will benefit most. Judging by the smart money, solar energy is outpacing its most significant competition in the clean energy space, wind.The 5-year return on Invesco’s Solar ETF (NYSEARCA: TAN) has been 233.52%, while the top wind energy ETF, First Trust Global Wind Energy (NYSEARCA: FAN), has only produced 32.45% gains over the same 5 year period. The solar ETF has delivered better returns in the past 6 months as well, +11.83% vs. -6.28%. So why is solar ironically ‘blowing away wind’?
MOORE’s LAW MEANS ‘MORE’ POWER
In computing, Moore’s law dictates that the number of components that can be placed on a chip doubles every 18 months. That’s the reason that the phone in your pocket has thousands of times as much memory and ten times as much processing power as a famed Cray 1 supercomputer, while weighing ounces compared to the Cray’s 10,000 lb bulk, fitting in your pocket rather than a large room, and costing tens or hundreds of dollars rather than tens of millions.
This law that has created chips smart enough to bring the power of a supercomputer to your cell phone, is now allowing solar cells to bring exponentially more power with every passing year. Over the last 30 years, researchers have watched as the price of capturing solar energy has dropped exponentially. The National Renewable Energy Laboratory of the U.S. Department of Energy has watched solar photovoltaic price trends since 1980. They’ve seen the price per Watt of solar modules (not counting installation) drop from $22 dollars in 1980 down to under $3 today.
Conversely, wind power faces challenges due to its negative effects on wildlife and noise pollution which makes it less desirable to the same environmental investors it looks to court; while solar energy becomes increasingly less invasive as it continues to improve the efficiency of solar cells.
SOLAR STOCKS INVESTORS SEE ‘SHINING’
Solar stocks are starting to soar based on the improvement in solar technology, several in the space are heating up and others seem to be set for a breakout in the near term.
One of the most valuable options for speculative solar investors may be VetaNova, Inc. (OTCMKTS: VTNA).
VTNA bills itself as “a food & energy company dedicated to food safety that builds and operates large commercial scale, energy self-sufficient, grid-connected, solar-powered, state-of-the-art, vertical greenhouses producing a range of fruits and vegetables for distribution to local markets.”VetaNova is still flying under the radar, but may not be a secret much longer for 2 reasons:1. VTNA’s CIS - Industry Classification is 100- Agriculture Production- CropsThis means VTNA does not show up in scans for solar industry stocks at the moment, meaning only the savviest investors are aware of this solar play.
2. VTNA has launched a Regulation A+ Offering, Making it a great value for Retail InvestorsVetaNova’s offering allows early retail investors to invest like an institution. One unit at $0.03 1/3 not only secures a share, but a warrant at the same price as the share as well as another priced at $0.05. This is over double the value of a share purchased on the open market at today’s prices. Learn more about VTNA’s offering here: https://www.vetanovarega.com/
VetaNova could ‘produce’ extremely impressive returns to its investors based on several factors in their favor:
- Inflation-sensitive assets and production – with its ability to produce its own energy through solar and water/ soil savings the company can shield itself from the factors causing food prices to rise from inflation.
- Lower cost local food for local markets - its greenhouse’s low production cost, plus strategic placement near large municipalities allows it to offer competitive prices to large local markets.
- Cost competitive Solar Power compared to fossil fuels saves 15%-20% that goes to the bottom line - and as noted, based on Moore’s Law these margins could continue to grow exponentially.
- Supply chain solution - the company is vertically integrating to shield itself from factors including transportation.
- Saves water, soil & fertilizer - VTNA’s solar-powered greenhouses use 10% of the water and 10% of the soil traditional agriculture does, allowing them to produce 80% more per square foot.
VetaNova's state-of-the-art greenhouses can be built for approximately $60/square foot, including solar field, compared to $250+/square foot for urban vertical growing facilities, which also have significant product limitations. VetaNova’s initial production facility will cover 2 acres, containing a 90,000 square foot state-of-the-art computer-controlled greenhouse and a 15,000 square foot processing facility.
The company is in a good place to start producing returns in the near term after signing a long-term exclusive distribution agreement with Mastronardi Produce, parent company of the popular Sunset brand fruits and vegetables. The deal gives Mastronardi exclusive distribution of all fruits and vegetables from VetaNova's solar powered greenhouse development located in Avondale, Colorado. According to the release announcing the agreement, this deal could start producing revenues as early as this winter.Mastronardi’s CEO Paul Mastronardi noted "The Controlled Environment Agriculture (CEA) space is rapidly evolving, and solar-powered greenhouses increase what we know is already the most sustainable way to grow."
Investors interested in ‘growing’ with this solar-agritech play (VTNA) start here: https://www.vetanovarega.com/
‘TRACKING’ SOLAR STORIES
It has been a busy summer for solar tracking stocks, ARRY and FTCI. Array Technologies (Nasdaq: ARRY) is a “global provider of utility-scale solar tracker technology. Engineered to withstand the harshest conditions on the planet, Array’s high-quality solar trackers and sophisticated software maximize energy production, accelerating the adoption of cost-effective and sustainable energy.” The company announced it has settled a lawsuit filed in 2017. The charges in the suit included misappropriation of Array’s trade secrets, tortious interference of contract, and breach of contract. This should save ARRY on legal fees.
FTC Solar, Inc. (Nasdaq: FTCI) recently announced it has closed the acquisition of HX Tracker, an emerging China-based supplier of 1P tracker systems. FTCI’s President and CEO, Sean Hunkler, said of the deal “This complementary acquisition accelerates our international expansion with a strengthened platform to accelerate growth in China, the Middle East, Africa and other markets.”
SOLAR PARTNERSHIP POWERS NATIVE CHAPTER HOUSE
Sunnova Energy International Inc. (NYSE: NOVA), Generac Power Systems, Inc. (NYSE: GNRC), and San Francisco-based non-profit, Empowered by Light, announced a partnership to bring clean energy to the Hard Rock Chapter House in the Navajo Nation with a free solar + battery storage system and 25 years of Sunnova’s energy service.
"The Hard Rock Chapter House serves as a central meeting place where the Navajo community is able to gather and this project was a chance for us to help make an impact by providing clean, reliable power, while also reducing their electricity bills to help them reinvest the savings to strengthen their community," said Kelsey Hultberg, EVP, Communications and Sustainability, Sunnova. "We’re honored that we were able to help create a first-of-its-kind solar + storage system in the Navajo Nation that includes our service. Even though the Chapter House is remote, in times of need this system will play a critical role in ensuring the community will have clean and reliable back-up power for years to come."
Learn more about solar agritech play VTNA, here: https://www.vetanovarega.com/
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