Solar's (TSL) (LDK) (SOL) (JKS) (JASO) Honeymoon Appears Over

Trina Solar (NYSE:TSL) LDK Solar (NYSE:LDK), Renesola (NYSE:SOL), JinkoSolar (NYSE:JKS) and JA Solar (NASDAQ:JASO) got crushed Tuesday on growing concerns over the sustainability of the solar industry.

The results and outlook from Trina Solar (TSL), along with many other factors, such as the two largest solar markets in the world - Germany and Italy - saying they're either cutting back on solar subsidies or taking a close second look at slashing even more on them, seems to be pointing to the honeymoon period of 2010 for solar being over, hitting the share prices of solar firms.

If the sector, which has no real legitimate market (outside of government force) wants to grow, it'll have to be at the sacrifice of margins, which will make it more of a movement than profitable business.

Solar is increasingly looked upon as quaint, and "cute," as Bill Gates recently said, and is irrelevant as far as being a legitimate so-called alternative energy source.

That doesn't bode well for the industry, as governments will look towards energy sources that have a chance to meet real needs, and not being promoted for political and media purposes of appearing green.

As for pricing, that is also degrading in the wafer segment of the sector, revealing the extreme volatility and unpredictability inherent in the industry.

Trina Solar closed Tuesday at $23.11, falling $1.68, or 6.78 percent. LDK Solar ended the session at $8.61, down $0.67, or 7.22 percent. Renesola closed at $7.57, dropping $0.45, or 5.61 percent. JinkoSolar closed at $25.79, falling $1.71, or 6.22 percent. JA Solar ended the day at $5.74, down $0.24, or 4.01 percent.

Hanwha SolarOne Co., Ltd.(NASDAQ:HSOL), JA Solar (NASDAQ:JASO), Suntech Power Holdings (NYSE:STP) and Yingli Green Energy (NYSE:YGE) all closed down Tuesday over 3 percent.