By Stockpickr Guest Columnist Steven Plisk

We all live under a huge power source that we've just begun to harness: the sun. The homebuilding industry is warming up to it -- gradually.

Energy prices hit us where we live. Hopefully we've all decompressed a little now that oil and gas have pulled back a bit. As much as we'd like to think they'll keep dropping lower -- and then stay there -- it's hard to ignore the voices saying that this is just a temporary reprieve. Like the Terminator and bad nickels, energy inflation will be back.

Folks, I think we can bank on the fact that energy costs are heading back up for the long term. Please don't kill the messenger. I'm here to suggest a small, but hopefully significant, solution to the problem.

The best part: With a little luck, we might be able to achieve one of those
rare outcomes where everyone wins.

Let's get right to the take-home message. Along with the other stocks on your energy sector watch list, I'd like to propose adding a new group: solar homebuilders. I know, you've probably never heard of them, right? Neither had I until I did some homework recently. Here's what I learned after doing some digging.

A Watch List for Investors

So far, I've found eight publicly traded homebuilders that integrate solar technologies into (some of) their designs. There must be more, so hopefully this is just a start. In any case, if enough new home buyers demand these kinds of features, builders should start
supplying more of them:

Beazer Homes (BZH) includes solar technologies in some of its eSMART home designs. These involve various energy innovations and advanced building methods that use fewer natural resources, improve the air quality inside the home and reduce energy consumption. The company also sponsored the 2007 Georgia Tech Solar Decathlon (an international competition to design, build and operate an 800 square-foot solar-powered house on the National Mall in Washington, D.C.).

Cavco Industries (CVCO), a manufacturer of factory-built homes, park homes and cabins, has introduced a new solar park series.

Centex (CTX) includes advanced technologies such as solar energy photovoltaics in its PowerSave packages.

KB Homes (KBH) has offered a Near Zero Energy Home package as a pilot project in some of its ComfortWise Home communities. It includes photovoltaic solar electric power systems, energy-efficient appliances and other innovations designed to allow these homes to generate as much power as they consume or more.

Hovnanian Homes (HOV), in partnership with the Solar Center, offers free solar panels in selected designs.

Lennar (LEN) offers SOLARplus technologies in some of its designs.

Meritage Homes (MTH) has built a number of Zero Energy new-home communities that combine solar electric power systems and energy efficiency.

Standard Pacific Homes (SPF) offers Sunergy designs that combine on-site solar electricity with other energy-efficient features.

Pin Action

I've also found some interesting pin action, especially for solar roof tile systems:

SunPower (SPWR) manufactures the SunTile, a "roof-integrated" solar
tile system.

Evergreen Solar (ESLR) makes wafers, cells and panels with string ribbon technology, designed for residential as well as commercial use.

BP Solar Home Solutions, a division of BP's (BP) BP Alternative Energy, makes a three-part kit that's available through Home Depot (HD). Could it be a sign of the apocalypse when big oil shows up on a "green building" watch list?

Currently, most of these companies are using polysilicon and thin-film photovoltaic, or PV, technologies. These help increase efficiency and give this generation of roof tiles a sleeker profile -- so they don't resemble the clunky panels most people associate with solar power systems.

Here are two more potential plays to watch:

Intel (INTC) recently spun off SpectraWatt, an independent solar technology company that may be getting in on the action. It manufactures and supplies PV cells for solar module makers. If some of its customers are active in the residential market, this could be another possible play.

First Solar (FSLR) is primarily focused on the commercial and free field markets. It doesn't seem to have migrated into residential applications yet. I'm also finding many references to other technologies, such as solar glass and siding for business and industrial applications. (Check out the "building-integrated PV" design of the Tiger Woods Learning Center in Anaheim, Calif.) If these technologies haven't been adapted to the residential market yet, it's probably just a matter of time.

Of course, new technologies are also in development. They include solar sheets that can be painted or printed on various surfaces, solar textiles that might be fashioned into window shades or curtains, and more-efficient energy storage systems. As each technology comes online and gains traction, it may find its way into the residential market as well.

Taking this a step further, the American Wind Energy Association has compiled a list of wind turbine manufacturers and suppliers for residential, farm and commercial/industrial applications. As these become more practical and popular, maybe we'll have to revise our thesis to reflect a bigger mandate.

Active & Passive Technologies

Solar homebuilding technologies go beyond active methods such as roof panels and power inverters. Passive solar design concepts have been around for decades. In a nutshell, they involve some clever ways of capturing or shading sunlight to assist with heating and cooling.

Both active and passive technologies are used by some homebuilders as part of a broader, best-practices approach known as optimum value engineering. This usually involves having subcontractors help with design, in order to reduce costs and enhance pragmatism without sacrificing quality. A variety of methods are used, with a growing emphasis on green building. The potential savings go beyond construction costs: home maintenance, heating/cooling and energy consumption/pollution are key issues as well.

In many areas, there are attractive tax incentives for building or retrofitting homes with these technologies. Some electric utilities also offer energy buyback programs. Talk about a good deal. If your home generates surplus electricity, the power company pays you for feeding it back into the grid!

Be Proactive

Sooner or later, energy prices will start heading north again. Regardless of that, I think it's safe to say we'll all be better off using less carbon fuel going forward. We need real answers in every sector and industry. Homebuilders have the means and opportunity to make a difference.

As for the motive, well, that's the X-factor. In my opinion, market demand is the key to creating it. It would also be nice to think that the government will help things along by coming up with a sensible energy policy in our lifetime.

The bottom line: Solar homes could be a win-win on several fronts. Beleaguered builders, owners and investors potentially stand to benefit, especially as the housing market recovers. After all, we've got access to the mother of all nuclear reactors -- and there's a lot more power where that came from.

Posted on Aug. 19, 2008