Please ensure Javascript is enabled for purposes of website accessibility

A New Powerhouse in Solar

By Toby Shute – Updated Apr 6, 2017 at 12:47AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Dow Chemical could revolutionize roofing with new solar shingles.

Back in 2007, Dow Chemical (NYSE:DOW) won a $20 million grant from the Department of Energy to research and develop building-integrated photovoltaics (BIPV) products. The fruits of that government-sponsored labor are Dow's Powerhouse Solar Shingle, which the company is bringing to market in partnership with solar-cell shop Global Solar Energy and homebuilders Lennar (NYSE:LEN) and Pulte Homes.

Other firms active in BIPV include Suntech Power (NYSE:STP), Energy Conversion Devices (NASDAQ:ENER), and Ascent Solar (NASDAQ:ASTI), which is a bit further behind Global Solar in the commercialization of thin-film copper-indium-gallium-diselenide (CIGS) solar cells on a flexible substrate. Compared to the headline-grabbing utility-scale projects of First Solar (NASDAQ:FSLR), BrightSource Energy, and others, BIPV hasn't given investors much to get fired up about lately.

Dow may aim to change that. The company projects $5 billion in revenue by 2015, and $10 billion to $11 billion by 2020. That's just for the Powerhouse shingle, ostensibly the first of more BIPV products to come. This is much more ambitious than DuPont's (NYSE:DD) target of $1 billion for its own solar-related revenue, and it would move the needle even for a company the size of Dow Chemical.

The key source of Dow's enthusiasm appears to be its claim that the shingle will be 30%-40% cheaper than current BIPV solutions, and 10%-15% below the per-watt installed cost of conventional rooftop panels. Of course, with the solar industry in such a fluid state, that latter comparison could shift dramatically, depending on relative technology advances, not to mention panel supply and demand imbalances.

We'll have to see how the trial installations go in 2010 before getting too excited -- or worried, for those investing in competitors like ECD -- about these new solar shingles.

Dow Chemical is rated a handsome four stars by the Motley Fool CAPS community. Want to see what members have to say? Step right this way.

Suntech Power and First Solar are Rule Breakers recommendations. Take any of our Foolish services for a spin free for 30 days.

Fool contributor Toby Shute doesn't have a position in any company mentioned. Check out his CAPS profile or follow his articles using Twitter or RSS. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

DuPont de Nemours, Inc. Stock Quote
DuPont de Nemours, Inc.
DOW
First Solar, Inc. Stock Quote
First Solar, Inc.
FSLR
$129.85 (-1.46%) $-1.92
Lennar Corporation Stock Quote
Lennar Corporation
LEN
$77.07 (-0.47%) $0.36
E. I. du Pont de Nemours and Company Stock Quote
E. I. du Pont de Nemours and Company
DD

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.