The alternative energy sector expects big things from the Democratic-controlled Congress, namely pumped up government spending and incentives for alternative energy sources.
But the nascent solar industry has hit roadblocks recently in its efforts to lock in long-term government incentives from Democrats, and some market players are wondering if Democrats can deliver on their renewable energy promises.
U.S. federal energy tax policy has a long history of promoting oil and gas development. Now the solar industry, which secured some tax breaks from the Republican-controlled Congress in 2005, wants to extend and expand these incentives. Failure to pass solar incentives could put pressure on the industry and would represent a setback, while passage is expected to rally stocks, according to analysts.
The industry's strategy for securing tax breaks has focused less on the environmental benefits of using non-fossil fuel energy sources to generate electricity and more on job prospects for lawmakers' constituents and rebuilding American's industrial cities.
These tax credits would be beneficial for some of the biggest names in the solar space including...MOREFrom ChinaAnalyst:
Solar Stocks Comparison Table (12/12/2007)
(in $millions except per share data)
| Ticker | Mkt | Price | Daily | YTD | Rev | Rev | Chg | EPS | EPS | Chg | P/E | P/E | Net |
| | Cap | | Chg | Chg | 07E | 08E | % | 07E | 08E | % | 07E | 08E | Margin |
| WFR | 19725 | 84.91 | 1.9% | 117% | 1929 | 2411 | 25% | 3.29 | 4.19 | 27% | 26 | 20 | 32% |
| FSLR | 19114 | 241.68 | 2.3% | 710% | 478 | 796 | 66% | 1.19 | 1.97 | 66% | 204 | 123 | 29% |
| STP | 13673 | 80.53 | 5.0% | 137% | 1369 | 2294 | 68% | 1.08 | 2.04 | 88% | 74 | 40 | 13% |
| SPWR | 10508 | 127.20 | 2.6% | 242% | 770 | 1230 | 60% | 1.23 | 2.06 | 67% | 103 | 62 | 3% |
| LDK | 5449 | 59.07 | 3.3% | 119% | 475 | 970 | 104% | 1.30 | 1.82 | 41% | 46 | 32 | 31% |
| YGE | 2915 | 31.69 | 5.1% | 188% | 518 | 868 | 68% | 0.44 | 0.91 | 108% | 72 | 35 | 8% |
| JASO | 2884 | 61.76 | 0.4% | 312% | 329 | 761 | 131% | 1.20 | 2.00 | 67% | 52 | 31 | 19% |
| TSL | 1255 | 49.63 | 3.3% | 163% | 293 | 676 | 131% | 1.28 | 2.83 | 122% | 39 | 18 | 10% |
| ENER | 1317 | 33.06 | 10.9% | -3% | 242 | 429 | 77% | -0.20 | 0.95 | N/M | N/M | 35 | -23% |
| ESLR | 1417 | 14.41 | 5.0% | 90% | 68 | 101 | 50% | -0.25 | -0.08 | N/M | N/M | N/M | -28% |
| SOLF | 1261 | 26.26 | 5.5% | 125% | 279 | 589 | 111% | 0.25 | 0.82 | 224% | 103 | 32 | 7% |
| CSUN | 397 | 10.03 | 1.2% | -9% | 233 | 421 | 80% | -0.16 | -0.06 | N/M | N/M | N/M | 8% |
| CSIQ | 643 | 23.45 | 7.3% | 124% | 291 | 713 | 145% | -0.08 | 1.31 | N/M | N/M | 18 | -6% |
| AKNS | 139 | 6.04 | 1.5% | 132% | 31 | 58 | 86% | N/A | N/A | N/M | N/M | N/M | -29% |
| HOKU | 190 | 11.41 | -10.4% | 337% | 4 | 7 | 109% | -0.40 | -0.25 | N/M | N/M | N/M | -139% |
| SPIR | 174 | 20.90 | 1.4% | 152% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -10% |
| ASTI | 220 | 20.69 | 3.5% | 613% | 1 | 2 | 108% | -0.71 | -0.13 | N/M | N/M | N/M | N/A |
| BTUI | 129 | 13.65 | -0.9% | 39% | 64 | 78 | 22% | 0.24 | 0.72 | 200% | 57 | 19 | 4% |
| DSTI | 61 | 4.00 | -5.0% | 7% | 0 | 0 | N/M | -3.24 | N/A | N/A | N/M | N/A | N/A |
