Hanwha SolarOne (HSOL) Down on Sector Weakness

Hanwha SolarOne Co., Ltd.(HSOL) has been getting hit hard lately as funding for the sector in the U.S. and around the world is slowing down as governments look closely at the industry and question the value of the sector as a viable energy source.

Uncertainty surrounding Italy cutting back on its financial commitment to the solar industry while deciding to focus on rooftop solar has hurt some companies in the sector and possibly could help others. But it shows the reason there is so much volatility in the industry, as it is increasingly being questioned by governments as to the viability of solar and other non-conventional energy sources being worth the cost and effort, as they are unreliable, expensive and won't help much over the long term.

Germany also announced on Friday they're probably going to revisit their commitment to the size of its feed-in-tariff, which is likely to be lowered, based on the comment itself.

Bill Gates also recently said solar and other so-called alternative energy sources have no real chance of dealing with our energy challenges, and rightly called solar and wind energy a "cute" idea but being no solution to our energy needs.

The truth is if an industry can't survive without the government, it's not a real market, but an artificial construct that needs to be abandoned as far as taxpayer subsidies and allowed to compete on its own in the marketplace. That includes all energy sectors.

Hanwha SolarOne Co., Ltd.(HSOL) closed Friday at $9.68, dropping $0.19, or 1.93 percent.