According to the WilderHill clean energy index, the renewable energy sector rose over 58% in 2007. The index includes 48 large U.S. companies in the renewable energy sector. With an expected gloomy year for the financial sector and a slowdown in tech spending due to a projected U.S. economic slowdown, the green energy stocks or alternative energy plays ultimately may be a safe haven in 2008.

In an expected difficult year for 2008, investors can’t indiscriminately buy the sector but many experts agree wind and energy efficiency companies are plays that investors should look at in 2008. As a member of the Wall Street community for 20 years, one of the things that I’ve learned is that institutional investors will pay overvalued prices for certainty much quicker than they will pay undervalued prices for uncertainly. Smart money will continue to commit dollars to the green energy plays well beyond the estimated $120 billion that was invested in the sector in 2007 as long as Green Energy remains cache or a buzz word. News outlets and corporate America are doing everything they possibly can to plaster their corporate images as members of the green community phenomenon.

Last year was a booming year for solar stocks with First Solar Inc. being the big winner of 2007. However, with the announcement by GE on Wednesday that they plan to invest $350 million in a Texas wind farm, expect the wind and energy efficiency specialists to get a lot of play in 2008.

There’s one other thing I learned on Wall Street. Follow the money trail and there is no better evidence to seek out the money trail than to observe the increased commitment from companies such as Morgan Stanley, Merrill Lynch and Goldman Sacks in their monitoring of the renewable energy/green energy sectors. Dow Jones Financial News Online points out that many major investment banks have between 10-20 full time staff devoted to the renewable energy sector at this time.. Look for Wall Street to be very Green in 2008.