In 1997, Clayton Christenson coined the phrase “disruptive technology” to describe a phenomenon that has occurred throughout human existence.

The term describes how, every once in a while, an innovation comes along that uproots and replaces an existing technology.

For instance, muskets replaced longbows, changing the face of warfare forever. And certainly cars replaced horses as the primary means of transportation.

Well, today we’re seeing a similar situation with alternative energy.

And investors who load up early in this sector stand to make small fortunes over the next few years. Especially in solar.

You see, with the introduction of thin film solar cells and organic polymers, a shift is now taking place that will revolutionize the solar market as we know it. And if your portfolio stays ahead of the curve, you stand to make a mountain of cash.

Moving the Mountain

An ancient Chinese proverb states: “The man who moves a mountain begins by carrying away small stones.” This is true of new technologies as well.

In order for a disruptive technology to become dominant, it must start with small steps--increased performance, more economical, smaller, etc. Then, all of a sudden . . . bam, it takes over the market.

In the solar arena, the mountain is silicon. And researchers have been chipping away at it over the past few years. After all those chips--most of them silicon--the mountain is starting to weaken.

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The key? A new solar energy conversion technology that doesn't rely on installing costly and ugly solar panels. It's estimated that in the near future nearly every new home built in America with have this system.

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You see, silicon has dominated the solar industry for years. The price of silicon solar cells has gone down, but their performance has remained the same--leaving them vulnerable to being supplanted by new technology.

And that’s what we’re seeing right now. The first company to challenge traditional solar cells was First Solar Inc. (NASDAQ: FSLR). Have a look at their success:

But First Solar still uses a traditional solar cell platform--it’s still rigid, with a glass backing.

That’s soon going to change. The silicon mountain is rapidly diminishing. And with its decline comes a rise in profits for its successor.

Last week, I attended an organic photovoltaics (OPV) conference at Johns Hopkins.

Scientists from academia and researchers from private industry unveiled their most recent developments. And trust me when I say they’re astonishing.

You see, the part of solar cells that collects light and turns it into usable power is now being made on a nano-scale--100,000 times smaller than the width of a hair on your head.

These nano-particles can then be injected into flexible plastics or infused with ink and printed on any solid surface. The advent of this technology is truly revolutionary, and I’ve spoken with some companies that already possess it.

They will be able to print solar panels as fast as your Sunday paper--but they’ll be worth way more.

But in order to even remotely compete with traditional cells, these new OPVs need to obtain at least 8% efficiency. From what I heard at the conference, we’re nearly there.

In a number of labs around the globe, 6% efficiency is routinely achieved, with nearly all researchers predicting 8% by the end of the year and 10% in the next twelve months.

Just imagine lightweight flexible solar cells on satellites and spacecraft. Solar cells printed right on the tops of cars and roofs, or right inside the bricks and siding of homes.

This stuff is going to happen. We’re witnessing a Wright Brothers flight for the solar industry.

And you can get into--and keep up with--the action right now. Green Chip Stocks is all over this thing.

Until next time,

Nick

P.S. – While we’re on the subject of profiting from the alternative energy sector, Jeff Siegel’s Alternative Energy Trader landed a quick 23% gain in just 3 hours today. That’s Jeff’s 23rd double-digit winner since mid-December. To see what he’s got in store next, click here .

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-- Matt Simmons, Peak Oil's first and most vocal proponent,
and founder of the country's last pure play energy investment banking firm.

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