Solar incentive programs, such as those in Spain and Germany, are one of the main drivers behind the solar industry’s rapid growth. For instance, the largest pure solar company, First Solar (FSLR), has a market cap of almost $20 billion and received 91% of its revenues from Germany in 2007.
In Spain, plans for major cuts in solar subsidies have wreaked havoc on many solar stocks. For example, the proposal on the table in Spain would reduce the amount of solar power bought for high prices from 400 megawatts a year to 300 megawatts, thus significantly reducing incentives for companies to build more capacity.
But now a Spanish web site is reporting that the government might actually increase the subsidy–from 400 to 450MW a year. Piper Jaffray now expects an increase to 500MW.
Oil’s precipitous fall has crushed solar stocks, as traders rightly conclude that, the farther oil drops, the less likely governments and customers are to support solar. Some of the stocks have rallied modestly on the new subsidy rumour. Confirmation of these plans would be huge boon to several solar stocks and likely spur a major recovery. Here are 5 solar companies that have over 50% exposure to Spain:
- Yingli Green Energy (YGE)
- SunPower (SPWR)
- Suntech Power (STP)
- Canadian Solar (CSIQ)
- Solarfun Power (SOLF)
As a reminder, industry leader First Solar has among the least exposure to Spain.
First Solar (FSLR), SunPower (SPWR) To Get Clobbered In 2009, Sell After Trade Show (FSLR, SPWR, AMAT)
Spain Solar Subsidy Proposal Crushes Yingli Green Energy (YGE), Solarfun (SOLF), First Solar (FSLR), et al (YGE, SOLF, STP, FSLR, SPWR, WFR)
Solarfun Power (SOLF), Yingli Green Energy (YGE) and Others: 50%+ Exposure To Spain (YGE, SPWR, STP, CSIQ, SOLF)
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