Uncertainty continues dogging the financial markets this week as investors around the world watch what becomes of the U.S. Treasury's proposed bailout plan. But despite the upheaval, investors at recently acquired Merrill Lynch remain upbeat about the potential future of solar power manufacturers. 

Fifty-three percent of Merrill Lynch customers participating in a survey described their attitude toward solar stocks as “bullish,” indicating their faith in the sector’s ability to return profits.  More than half of the remaining respondents (28 percent) said they were neutral, placing potential gains on a par with the rest of the market. This fairly optimistic stance reflects an earlier Merrill Lynch survey, in which 63 percent described themselves as “underweight” on solar investments. The surveys reflect a positive attitude and eagerness to buy that should improve solar’s returns in a tumultuous market where psychology is likely to play a large role. 

Potential buyers in overseas markets should help fuel investor confidence, the Merrill Lynch survey suggests. European Union carbon caps, along with Italy’s solar-friendly renewable tariffs, make this investment attractive to Italians. Anti-nuclear sentiment, the country's long-standing history of using renewable energy, and similar EU carbon restrictions make Germany a another attractive place for solar manufacturers.

Meanwhile, in the United States, financial instability and inflationary pressures currently surrounding the dollar have many U.S. solar manufacturers looking abroad. 

The outcome of the presidential election may also play a large role determining the strength of solar investing. While only a minority of Merrill Lynch’s investors anticipate the U.S. solar tax credit will be renewed before the end of the year, an administration less historically tied to fossil fuel companies could provide a tremendous boost for the sector. Insufficient government subsidies were widely singled out by Merrill Lynch investors as the primary stumbling block to solar investment, and a more favorable political climate could change that, too.

That having been said, other problems still leave many investors hesitant. The influx of scientific interest and venture capital into solar firms has resulted in a very crowded market. While clear leaders are emerging, uncertainty still reigns.  A massive contract handed out by PG&E to Optisolar, a relatively unknown thin-film manufacturer, has shown that picking out the next significant market presence can be tough; however, the flip side of this is that viable firms still remain among unknown and lower-priced competitors.

Regardless of sector, short-term investments look to be plagued with uncertainty and volatility. However, once the worldwide financial markets see how the U.S. plans to deal with the current crisis, solar markets should emerge as a sound investment for reliable growth.