The solar industry is under duress to say the least, and the very real possibility China may end up creating the first solar bubble is now being bantered about in the media, with solar companies like Yingli Green Energy (NYSE:YGE), Renesola (NYSE:SOL), SunPower Corporation (NASDAQ:SPWRA), MEMC Electronic Materials, Inc. (NYSE:WFR) and Suntech Power Holdings (NYSE:STP) sure to come under stress after a seemingly unhindered run for several years before 2009.
Forbes' William Pentland wrote, "The epic expansion planned for the latter part of this decade may create the world’s first solar-energy bubble. The existing solar supply chain is likely too shallow to sustain growth on this scale. Unless the industry develops scalable infrastructure over the next four years, China’s planned installation of 8 GWs of solar capacity annually between 2015 and 2020 is likely to create severe bottlenecks in the solar supply chain. These bottlenecks could radically inflate the price of basic materials like silicon and create labor shortages that would affect the costs of manufacturing solar modules, designing and installing new solar systems and operating and maintaining already installed systems."
Combined with Germany and Italy cutting back on solar subsidies, it would make the China market even more important as far as solar goes, and with little demand from other countries, will disporportunately affect to view of the industry. during the coming years, which appear to be very negative.
Yingli Green Energy (YGE) closed Monday at $11.34, dropping $0.11, or 0.96 percent.
Tuesday, May 10, 2011
Solar Bubble (YGE) (SOL) (SPWRA) (WFR) (STP) Coming for These Firms?
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11 comments:
It sounds like you are saying that demand is a bad thing for solar. Most solar manufacturers are increasing capacity for producing more pv units. Sounds like a great time to buy stocks in solar to go long. The U.S. is also getting into the game.
Sounds like the game plan should be to buy oil because of increasing prices and solar because of increase demand.
Recognize that Allen is either short on solar stocks, or a stooge for the Nuclear industry - much of what is written by this blogger is full of half-truth and twisted logic...
I agree with Allen.. the demand for solar is going to be difficult to match in the coming decades.. now seems to be the right time to invest in solar. Thanks Allen.
I think there was a similar bubble in oil around 1900, right after the introduction of the automobile. I guess those oil companies also had a hard time with all the "Botttlenecks" and such. What an idiot! This could be the worst article I've read this year!
It's fairly obvious what you're trying to do with the constant crapping all over the solar industry. I don't take any of your "advice" seriously. Why did Total oil just make a big investment in Sunpower? I think that makes a very powerful statement about the future for solar.
looks like someone is so long on gold and short everything else, that they have lost their reasoning ability. Agreed, dumbest article I have read this year. Personally, I am getting very tired of bloggers as a breed.
The bantering of Chinese solars have been going on since the Trade war between the US and China from late '10. And now the old lobby is trying to create more doubt among retail investors.
Nice try losers!!!
Allen, Jan.. whatever your name is.. everytime 'everything gold' posts, I will buy more solar.
Allen, you have no shame?
Allen does not know he is talking about. We should invest in solar.
solar bubble??? good call idiot...
this blog posts nothing but junk like this.. do some research before writing an article please...
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