Solar panels have been in short supply since 2005 because silicon, a key component of photovoltaic solar panels commonly installed in homes and businesses, was limited.

With the federal alternative-energy investment tax credits set to expire Dec. 31, installers and manufacturers have reported a spike in demand for solar panels this year.

“It’s almost a man-made shortage because everyone is scurrying around to get their jobs done before the tax credits expire,” said Ron Kenedi, vice president of Solar Energy Solutions Group for Sharp Electronics Corp., the largest maker of solar panels.

Tucson-based Technicians for Sustainability buys solar panels from Schott Solar Inc. and SunPower Corp. Both makers have told company President Kevin Koch that he will likely not be able to get more panels this year.

“We’ve pretty much taken up our allotment for the rest of the year,” Koch said.

If a business asked Koch to install a 30-kilowatt system, typical size for a commercial job, Koch said he could not take on the project this year.

“I would have to turn them down,” he said.

A typical residential installation would take a 3- to 5-kilowatt system, using fewer panels, installers said. So the shortage is more critical for business installations.

Dave Haycock, of All West Energy Inc. of Fountain Hills, said that his company will take on projects one at a time.

“We have a limited supply,” Haycock said of solar panels.

Scottsdale’s American West Solar, the largest installer in Arizona, has long-term deals to buy panels from Sharp and Kyocera Solar Inc.

But with the increase in demand before the solar credit expires, the company said it cannot take any more orders for 2008.

“We’re fully committed for this year,” said Krystal Book, a company spokeswoman.

The normal wait time for solar projects is a few months, Book said.

Phoenix’s Perfect Power would not have trouble filling orders before the end of the year, but it is not taking any more commercial projects for 2008, said John Balfour, company president.

“We have a plan, we’ve kept to our plan, and we look like we’re going to be right on target,” Balfour said.

(via azcentral.com)

Here’s a few solar stocks that I’ve been following:

First Solar is a long time favorite but it’s been taking a beating. Not sure why; there’s been no significant news. The market as a whole has plunged over the past few days but FSLR’s fall has outpaced the general market significantly. Perhaps it has to do with the drop in the price of oil?

This one looks like it might be testing support.

Here’s a solar index that I currently own. Reflects the beating that solar stocks are currently taking from the bears. Hold on tight, we’re in for the long run!