Why Is Silicon Valley Turning Its Back on Solar Stocks?
Jul 20th 2013 10:03AM
Updated Jul 20th 2013 10:08AM
Private equity and venture capital groups from Silicon Valley have developed a reputation for investing in groundbreaking technology and the next big thing. So it's a bit surprising that many of these companies are pulling their money out of renewable energy stocks, or, more specifically solar panel companies. So what's causing this kind of move?
Even though the solar industry is still growing fast, it's becoming a more and more competitive space as manufacturing capacity from places such as China have been outpacing demand. This extremely competitive environment has caused several investors to get burned in the solar space, most notably with the now-bankrupt Solyndra. Rather than try to pick winners in a space that's fighting a pricing war, it looks as though these tech-savvy investors are looking at some of the newer developments in the energy space such as smart grid and energy efficiency technology. Does this mean that solar stocks are bad investments for you? Tune in to the following video, where Fool.com contributor Tyler Crowe takes a look at whether the solar space is still a good place to invest.
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The article Why Is Silicon Valley Turning Its Back on Solar Stocks? originally appeared on Fool.com.Fool contributor Tyler Crowe and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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