First Solar (FSLR), Trina Solar (TSL), Suntech Power (STP), JA Solar (JASO) Challenged by Shrinking Subsidy Environment

First Solar Inc (FSLR), Trina Solar Ltd (TSL), Suntech Power Holdings (STP) and JA Solar (JASO) will probably quickly learn if they are viable long-term businesses, as cash-strapped nations have been lowering their subsidies on the sector, and it's far past time, as it should always be determined by the market and not governments extracting taxpayer funds to prop up an industry.

It appears Market Vectors Solar Energy exchange-traded fund (KWT) will follow the sector down, as many of its holdings have plunging on the growing realization they may have to increasingly compete in more of a free market scenario.

Volume on Tuesday for Market Vectors Solar Energy soared from $38,600 on a daily basis to 648,205.

Now that the larger markets in Europe, such as Germany, France, Italy and Spain have slashing solar subsidies, the thought is the companies will focus on the American market, We need to slash solar subsidies here as well.