Gamble of the week: Profit from solar power

Solar power has been a growth sector for years. And with an increasing number of countries turning to renewable energy, this small tech stock is a buy for the brave, says Paul Hill.

The problems in the solar sector are well known. Huge excess capacity, especially in China, has swamped the market and sent solar prices down 40%-70% over the past 12 months. But these cheap prices in many cases below current production cost, even in China mean we've reached a tipping point in the industry.

In many regions, I estimate it is now cheaper to install solar cells than to build a new coal-fired power station. This is even true without any assistance from state subsidies and explains why the volumes of photovoltaic (PV) projects rose a staggering 70% last year to 27.7GW, according to the European Photovoltaic Industry Association.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.