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Wednesday, February 27, 2013

Solar: Staggering -- There Goes The Sun

Start with The Oil Drum: The Price of Solar Power, posted February 26, 2013.
All across Europe, feed-in tariffs and subsidies for solar power are being cut or even scrapped. In Portugal and Spain, these actions are justified with the debt crisis, even though they expand these states' trade deficit. This month the Spanish government took a decisive move to scare investors away and expel most renewable energies from the electric grid, particularly solar. 
Inside that linked Oil Drum article is a Reuters article, posted February 14, 2013.
Foreign investors in renewable energy projects in Spain have hired lawyers to prepare potential international legal action against the Spanish government over new rules they say break their contracts.

The Spanish Parliament approved a law on Thursday that cuts subsidies for alternative energy technologies, backtracking on its push for green power.

That measure, along with other recent laws including a tax on power generation that hit green energy investments especially hard, will virtually wipe out profits for photovoltaic, solar thermal and wind plants, sector lobbyists say.
Then, MarketWatch: solar stocks whacked for second straight day.
There goes the sun. Investors took a club to solar stocks for a second straight day Wednesday following First Solar’s disappointing outlook and Trina Solar’s weak fourth-quarter earnings.
In Wednesday morning trade, First Solar tumbled 17% to $26.06. SunPower dropped 9% to $10.63. Trina Solar slid 4% to $4.05. SolarCity declined 4%.
The Guggenheim Solar ETFtan retreated 3% to $17.83, while the Market-Vectors Solar Energy ETF lost 3% to $41.35.
Solar stocks had a heady start to the year, far outpacing the broader U.S. market. But those gains are waning as industry executives warn there still are too many solar panels in the market and no let-up in aggressive price pressure to win new business.
Barron's: First Solar disappointment hammers Chinese solar stocks.

Motley Fool: First Solar showing signs of fatigue.

Disclaimer: this is not an investment site. Make no investment decisions based on what you read at this blog.

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