The solar market was hot in 2013 as the emergence of the U.S., Japan, and China as demand sources helped reverse the falling price of solar panels. Next year, demand should only grow, which bodes well for companies like SunPower (NASDAQ:SPWR), Canadian Solar (NASDAQ:CSIQ), and JinkoSolar (NYSE:JKS), which are already profitable. If they can continue to cut costs and prices continue to rise their margins will grow.
Installers should do well in 2014, too, which is positive for SolarCity (NASDAQ:SCTY.DL) and SunPower, which generate revenue from residential leases as well as project sales.
Erin Miller sat down with solar analyst Travis Hoium to see what investors should look for next year and where their money should be.
Fool contributor Travis Hoium manages an account that owns shares of SunPower and personally owns shares and has the following options: long January 2015 $5 calls on SunPower, long January 2015 $7 calls on SunPower, long January 2015 $15 calls on SunPower, long January 2015 $25 calls on SunPower, and long January 2015 $40 calls on SunPower. The Motley Fool recommends SolarCity. The Motley Fool owns shares of SolarCity. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.