From Barron's Tech Trader Daily:
The sell-off in the solar sector continues today, due largely to ongoing concerns about a proposal for a sharp reduction in solar subsidies in Spain.
As I noted yesterday, the Spanish government is considering a proposal which would put a 300 MW cap on subsidized solar installations, with a reduction in the subsidy to 33 Euro cents per kilowatt-hour for roof-top installations, and 29 cents for ground-based systems. That would be down from about 45 cents now.
Several analysts weighed in on the issue this morning.
Deutsche Bank’s Stephen O’Rourke notes that a 300 MW cap would be in sharp contrast to installations of more than 1GW in 2008. Were a cap of that size enacted, “it would be a clear negative for overall industry growth,” he writes. O’Rourke advises sticking to companies with lower exposure to Spain, including First Solar (FSLR) and MEMC Electronic Materials (WFR)....MORE