Lehman Brothers today issued a mammoth 108-page report today from three analysts in Hong Kong with an assist from semiconductor analyst Tim Luke on the coming “golden age” for solar energy companies. The Lehman report says that through the end of 2007, the solar industry will continue to see growth muffled by a shortage of polysilicon, the raw material used to produce both solar cells and semiconductors. Then from 2008 to 2010, they say, the industry should enter a “golden period,” with stable margins, strong demand and the removal of materials bottlenecks. “We expect earnings to surge for the entire PV [photovoltaic] industry in 2008-2010, and especially for upstream players,” the Lehman analysts write. After that, they say, will be a period of product commoditization that will prove more difficult.

The report advises investors to target companies with strong capacity growth, immediate capital strength and cost-competitiveness. Companies that meet those standards, the report says, include BP Solar, Japan-based Kyocera, Q-cell of Germany, China’s Suntech (STP) and E-ton and Motech, both based in Taiwan. The report also has kind words to say about some component suppliers, including SunPower (SPWR), MEMC (WFR) and Japan’s Sharp and Sanyo.

In a note accompanying the report, Luke repeated his buy recommendations on both SunPower and MEMC.

Meanwhile, Pacific Growth analyst J. Michael Horwitz today issued a note raising his 2007 revenue forecast for SunPower to $334 million, from $310.4 million; that follows a stronger-than-expected second quarter report last week from the company, which is controlled by Cypress Semicondcutor (CY). Nonethelress, Horwitz continues to think their are risks in the stock, in particular silicon supply and the ramping of production, and maintains a neutral rating.

Today, SunPower shares jumped $2.74 to $32.79, while MEMC gained $1.09 to $29.70. Cypress rose 57 cents to $15.01, and SunTech gained 58 cents to $25.08.