Solar stocks have had a rough time this last year, but since June, there has been a dramatic change, and the demand for these stocks has soared. It is expected that the next few months will see some healthy earnings for solar stocks. The strong fears regarding euro depreciation, which has a crippling effect on the sector have died down, and solar trading has picked up strongly over the last month. This article follows on from our article last year, reasons to begin investing in solar power. To read this article, click here

However, the sentiment of fear that is associated with the solar sector has yet to let go of its grip. As a result, as earnings from the solar industry start to be released, and we see a series of impressive numbers, investors need to focus on demand in 2011, and consider whether the boom and bust solar industry will be oversupplied.

If oversupply really will be an issue in 2011, it will not really become clear for many months. What we do know is that most of the major players in the solar industry have sold-out of their products until the end of the year, and so there are sure to be strong earnings for at least the next six months.