The Motley Fool Take Boeing Basks in the Sun

Boeing's (NYSE: BA) wholly owned subsidiary Spectrolab recently announced the development of a new solar cell that can convert 41 percent of the sunlight it gathers into electricity. This is significant because Spectrolab, a leader in providing solar power for space-based applications and a supplier of solar power to more than 500 satellites, as well as the International Space Station, may now be able to advance its competitive position.

For example, improved solar-cell efficiency could help satellites operate for longer periods and perhaps perform new functions. A smaller, more efficient solar cell could also save Spectrolab's satellite customers big money.

The new technology might help Boeing penetrate the solar market here on Earth. It's already operating a modest 33-kilowatt facility in Australia, and says it has signed some multimillion-dollar contracts in the last year and "anticipates several new contracts in the next few months."

Should Boeing put serious resources behind it, Spectrolab could make real waves and pose problems for other solar leaders, such as BP Solar (NYSE: BP), Kyocera (NYSE: KYO) and SunTech Power (NYSE: STP).

The demand for solar energy is surging worldwide, as countries and energy providers look to solar-concentrator technology as a practical means for generating electricity. If it plays its cards right, Boeing's Spectrolab could soon be basking in the sun.