Electricity. Most of us rely on it from the minute we wake up until the minute we go to bed. And it can be very easy to take for granted -- until the power goes out for one reason or another.

For the most part, the electricity that lights our homes and keeps our televisions running is generated from fossil fuels like coal and natural gas. However, there is a global movement taking place to transition toward cleaner, renewable sources of power.

This seismic shift has been in the works for decades, but it is finally gaining traction -- and investors that have backed emerging new technologies are racking up amazing gains.

Solar Power Heats Up with +300% Gains
In the late 1960s, President Nixon started a project to determine whether it was economically feasible to generate solar power -- a power source both powerful and plentiful. Solar-related research continued on under Presidents Carter and Reagan. Still, for many years the prospect of harnessing the energy of the sun seemed little more than a science project.

However, that is all rapidly changing. Led by Germany and Japan, many nations around the world have begun to embrace the sun as a viable form of alternative energy. This shift has been partly fueled by generous government subsidies, tax credits and other incentives. At the same time, technological advancements have paved the way for solar panels that are cheaper and more efficient than ever -- to the point where solar power will soon be price competitive with grid-produced power derived from fossil fuels.

The companies engaged in this dynamic business are growing enterprises turning out real profits. In 2007, the solar power industry leader reported revenues of $504 million -- a staggering increase of +273% from the previous year. And the company’s share price went along for the ride -- gaining +300% over the past year.

Yet, this is just one of more than two dozen companies involved in the nascent solar power field -- and those stocks already have a combined market capitalization well in excess of $100 billion.

Currently, solar power accounts for just a tiny fraction (one-tenth of one percent) of the nation's electricity. According to the International Energy Agency, the United States currently produces about 480 megawatts of solar power each year. By 2010, that total could easily reach 3,000 megawatts.

Of course, all of this will translate into billions in revenues for solar energy companies. In fact, industry-wide revenues are expected to climb as much as +55% annually over the next few years, pushing annual revenues north of $25 billion.

Yet, while solar power is projected to be the fastest-growing source of electricity over the next couple decades, it certainly won't be the only one.

Renewable Resources – Renewable Profits:
Billionaire oilman T. Boone Pickens surprised Wall Street when he announced that his latest energy venture had nothing to do with oil. His project involves building the largest wind farm in Texas. When completed, the $12 billion project will generate enough power for more than 1.3 million homes. "You find an oilfield, it peaks and starts declining, and you've got to find another one to replace it," Pickens said. "With wind, there's no decline curve."

Wind turbines are already a common fixture in several regions around the world, such as Denmark -- where wind produces as much as 30% of the nation's power.

Meanwhile, geothermal plants (which generate power using the Earth's own heat) have popped up in Hawaii, California, Thailand, and other places.

Some companies have even found ways to recycle trash into energy. One of the largest garbage-haulers in the U.S. has built plants that convert methane gas (a natural by-product of decomposing landfill waste) into a clean, renewable power source. The firm intends to construct another 60 of these facilities over the next five years, with a combined generating capacity of 700 megawatts -- enough to power 700,000 homes for a year.

From solar to wind to hydroelectric to biomass to geothermal to nuclear, the movement away from fossil fuels and toward alternative sources of energy has begun to hit its stride. And there are several underlying factors facilitating this transformation.

Environment and Oil Prices Will Keep this Sector Hot
A number of factors are driving this surge in the alternative energy sector. The environment, for one, is playing an increasingly prominent role. Many nations have moved to clamp down on greenhouse gas emissions and other industrial pollutants.

Here in the U.S., the Clean Air Act was passed to help reduce toxic air emissions, and roughly half of all states have some type of legislation on the books requiring the use of alternative energies.

Many foreign governments have taken an even stricter approach. The European Union, for example, is urging utilities to explore cleaner energy sources and is expecting more than 20% of electricity to be generated by alternative means within the next several years.

And aside from the changing regulatory climate, rising commodity prices are also speeding up the shift away from fossil fuels. As recently as 2000, natural gas was trading below $2 per million BTUs and crude oil was selling for less than $20 per barrel. Since then, natural gas prices have spiked to more than $11 and oil has flirted with the lofty $130 per barrel mark. Obviously, soaring oil and gas prices will only hasten the world's desire to seek out cheaper sources of energy.

Finally, there are geopolitical concerns to consider. Every day, the United States imports more than 10 million barrels of crude oil and other petroleum products. Much of that comes from highly unstable regions in the Middle East and Africa, where even the threat of a supply disruption can lead to a spike in prices. Even if prices weren't at stratospheric levels, there would still be a public outcry to reduce our dependence on foreign energy.

Why Choose? Own them All
With all these factors in mind, editor Nathan Slaughter featured the burgeoning alternative energy sector in a recent issue of his premium newsletter, The ETF Authority. There are a number of alternative energy technologies out there. But should you own solar, wind, nuclear, or any number of other technologies?  Nathan recommends holding a diversified portfolio in this relatively young, but growing industry -- and he’s identified a number of exciting new funds that invest across the spectrum of the alternative energy sector.

To learn more about The ETF Authority, including how to access the profiles of these funds, please visit this link.