Energy conservation makes the most sense when it also saves money.

Europe is far ahead of the United States in gasoline mileage because it slaps taxes on big cars and trucks, big engines, gasoline and even parking spaces for big vehicles.


European cars average 43 miles to a gallon, compared with 29.3 mpg for cars sold in the United States. That's not counting our trucks and sport utility vehicles.

China is far ahead of the United States in solar power because, even before oil and natural gas prices exploded, it saw solar as a cheap solution for heating water in sinks and showers.

With 30 million solar households, or 60 percent of the world's installation capacity, China has become a leading solar-panel manufacturer.

High energy prices are making solar power more cost-effective in the United States. In addition, the 2005 Energy Policy Act gives consumers a tax credit to try it - as much as $2,000 on the cost of qualifying solar systems installed before the end of 2007.

The California Public Service Commission voted to pay out $2.9 billion in rebates for the purchase of solar panels during the next 10 years. Venture capital firms are investing heavily in this technology, and big business is embracing it, too.

For example, a Wal-Mart Stores Inc. test store near Dallas has solar panels integrated into the garden center's canopy, the roof of the entry vestibules, the façade of the front entry and the roof of the automotive area. Wal-Mart intends during the next three years to cut energy use in stores by 30 percent.

U.S. companies in this fragmented business are relatively small; their shares are volatile and carry risk. The annual industry growth rate of more than 30 percent since 2000 still represents less than 0.1 percent of the world energy market. Yet demand for solar panels is growing, with waiting lists in some areas.

Three higher-visibility firms receive consensus analyst "buy" ratings, according to Thomson Financial:

Evergreen Solar Inc. of Marlboro, Mass., develops, makes and markets solar-power products for electric power worldwide. It is involved in wafer, cell and module manufacturing, and it holds numerous patents. Its recommendations are three "strong buys," four "buys," one "hold" and two "underperforms."

SunPower Corp., Sunnyvale, Calif., designs, makes and sells solar cells, solar panels and inverters that convert sunlight to electricity. It has one "strong buy," five "buys," three "holds" and one "sell" rating.

Energy Conversion Devices Inc., Rochester Hills, Mich., designs and sells thin-film solar-cell products, nickel metal hydride batteries and memory devices. It has two "strong buys," four "buys" and one "hold" recommendation.



With "The Leckey File," Tribune Media Services columnist Andrew Leckey offers insightful, sometimes humorous observations about business or finance.