Solar ETFs Could Be A Contrarian Play

With Greece and the European Union plaguing the headlines, oil prices have fallen to approximately $70 a barrel. This low cost has taken the wind out of the sails of many forms of alternative and renewable energy. When fossil fuel prices rise, alternative forms of energy become more competitive from a cost point of view and conversely when they fall, interest in these fuel types diminish. In this case, solar energy producers have seen many of their shares prices fall in concert with oil's decline. The low price of oil combined with the recent cuts to the generous subsides many European governments have traditionally given solar power producers have left the sector in a world of hurt. However, as the planet's population continues to increase, so will its hunger for energy. Currently, the solar sector represents a contrarian play on oil prices climbing in the future. Both the Market Vectors Solar Energy ETF (NYSE:

) and Claymore/MAC Global Solar Energy (NYSE:

) are presently trading near their 52 week lows. For investors wanting to get into the solar sector, both funds offer a easy way to add it to a portfolio. Look for this bargain to continue as both ETFs could fall further as the global economy continues to slump under the weight of Greece. But over the longer term, these funds may be the ticket to renewable energy gold.