Suntech Nears Final Reckoning; Yingli’s Sales Grow While Losses Narrow
Doug Young New developments in the battered solar energy space indicate the day of reckoning is fast approaching for embattled Suntech (NYSE: STP), even as the latest results from rival Yingli (NYSE: YGE) are showing early signs of a rebound for the battered sector. Industry watchers will recall that cash-strapped Suntech has nearly $600 million worth of bonds that will mature on March 15, even though it lacks the money to repay the bondholders. The company hired investment bank UBS in October to try and renegotiate the debt, though we haven't heard anything from the company since...
Solar Micro FiT 3.0 as an Investment
Brian Kennelly I am asked this question over and over again and I can answer quite emphatically, YES! Most think I answer that way because I’m a nut about renewable energy and sustainability and my business also sells solar arrays. These are valid points but I still maintain that the OPA FiT program is one of the best, secure and environmentally friendly investments you will ever make! Most people that know me probably are not aware that I was educated and began my career in finance and accounting. A very satisfying time, but alas my entrepreneurial urges got the...
Too Much Solar Could Be Good for Inverter Companies
2009 is likely to be a watershed year for the solar photovoltaic (PV) industry, and one which many PV manufacturers will not survive. Even before the credit crunch and plummeting housing market made capital intensive PV much harder to finance, the easing of supply constraints in the market for solar grade silicon meant that PV supply was liable to increase rapidly, putting pressure on marginal producers. I expect that the loss of PV demand due to tighter credit markets will more than compensate for the added demand due to the extension of the solar Investment Tax Credit (ITC) and...
Is SolarCity a Wise Investment?
By Harris Roen As a result of a disappointing earnings release, SolarCity (SCTY) took a shellacking on March 7th. The stock traded down 17.6% to the low of the day, and closed down 14.4%. Still, the stock is up 6.5% for the month, and the savvy investor would have gained 78% if they bought SCTY on the first day of trading in December 2012. So what happened? Moreover, what is the outlook for this innovative solar company? It was no surprise that when SolarCity’s earnings results were released on March 6, the company had...
Asia-Pacific Demand To Help Sector Re-Balance
by Clean Energy Intel Asia Pacific Market Demand By Region Source: NPD SolarBuzz: Asia Pacific Major PV Markets Quarterly New data published today by SolarBuzz in their Asia Pacific Major PV Markets Quartely points to a surge in new installations in both China and the Asia Pacific region as a whole. Indeed, the region seems likely to add a total of 2 GW of new installations in Q4 of this year. This is good news for the solar industry and could help bring supply and demand in...
Sunpower’s Mating Call
SunPower Corporation (SPWR: Nasdaq) has sent out an unusual mating call. Like a bird with a newly built nest, the company is seeking a partner to help build out and operate SunPower’s production facility in Hillsboro, Oregon. The plant was acquired in late 2018, from SolarWorld Americas after the Trump administration slapped tariffs on solar panels imported to the U.S. Domestic production, even at higher local costs, could make sense when compared to such prohibitive import tariffs.
Uncomfortable Three-some
Some investors might see the tie-up as an uncomfortable three-some. Indeed, the solar panel tariffs came about when SolarWorld Americas and its compatriot Suniva filed an application...
China Speeds Up Solar Lifeline
Doug Young Solar Lifeline image via Bigstock A new Chinese media report shows that after more than a year of talk, Beijing is finally turning its aggressive talk on solar energy into action by more than doubling its approval of new solar power plants this year. The main question now is: Will any of its struggling solar panel makers survive long enough to enjoy the expected boom in business when some of these new plants start to get built. Of course industry watchers will know the answer is...
Yingli: Sunnier Days Ahead?
Doug Young Struggling solar panel maker Yingli (NYSE: YGE) is trying the good news-bad news approach to distract investors from its latest downbeat earnings, announcing its biggest-ever new order on the same day it released its dismal third-quarter results. Based on shareholder reaction, the approach has been quite successful, with Yingli's stock surging more than 13 percent in Wednesday trade after both announcements came out. Investors seem to clearly be focused on the big new order, and are hoping that Yingli may actually be able to manufacture profitably by the time it delivers the solar cells to this...
Why SunPower (SPWR) is a Solid Bet on Solar
By Jeff Siegel I've been singing the praises of SolarCity (NASDAQ: SCTY) since the company first went public. Even as renewable energy bears attacked anything with the word "solar" in the name, I stuck to my guns. And I'm glad I did. Here's a quick look at how SCTY has performed since its debut: Of course, at this point, SCTY is an easy ride. Even if the company's next earnings disappoint, the long view remains solid. So when the company delayed earnings this week, I didn't lose any sleep. The fact is, those who took...
SolarCity Announces Expansion in New York, Files for $200 Million IPO
Vince Font Just days after announcing the launch of major expansions in New York state, the San Mateo-based solar company SolarCity has filed for an IPO in excess of $200 million. Having already received more than $1.5 billion in funding from a variety of high profile companies including Google, PG&E, and U.S. Bancorp, SolarCity is betting on the success of its business model to appeal to stock investors eager to snatch up a slice of the potentially lucrative solar pie. The company’s business model is simple and effective, and has led SolarCity to rapidly become...
SolarCity: Sunburn, or Healthy Glow?
By Harris Roen SolarCity (SCTY) fell 9.1% Wednesday when the company released its first quarter earnings report, but gained all of it back and then Thursday on huge volume. Still, the stock has plummeted 22% in three months, and is down 37% from its highs in February 2014. Is this just a healthy correction from its outsized 400%+ gains from the IPO just 17 months ago? Or have we entered into a new lower trading range more in line with financial realties? This article will analyze current developments to this distinctive energy stock, and project where...
US Closes Solar Tariff Loophole
Doug Young In a move that should surprise no one, the US has announced it will levy new punitive tariffs on China-made solar panels to close a loophole from an earlier ruling. This move won’t help anyone and could seriously stifle the industry’s development just as it starts to emerge from a prolonged downturn. It also looks worrisome from a broader perspective for Chinese panel makers, since signs are emerging that their products could also be shunned in Japan and India, 2 of the world’s other promising emerging markets for solar power plant construction. I’ll return...
From Solar 2009: Removing The $2,000 ITC Cap
Charles MorandLike Tom, I attended part of the Solar 2009 conference last week. One of the most interesting presentations I heard was by Andy Black, CEO of OnGrid Solar, on the potential impact on residential solar installations of removing the $2,000 ITC limit (link to the actual paper). Prior to changes in October 2008, ITC tax credits for rooftop solar PV installations were capped at $2,000. In the author's own words: This paper presents revised and expanded financial analyses of residential cases . It will look at Internal Rate of Return (IRR) only (for simplicity of...
Japanese Solar Manufacturers Get Their Groove Back
Junko Movellan The Skies are Brightening as Manufacturers Resume Spending to Improve Efficiency Almost one decade ago, Japanese PV makers dominated global PV production Sharp (SHCAY), Kyocera (KYO), Sanyo (now part of Panasonic) and Mitsubishi Electric represented about 50 percent of global production in 2005. When German and other European markets expanded quickly, a great number of companies in Europe and Asia, specifically China, jumped into the “potentially” profitable PV industry. They rapidly ramped up their production and brought down costs, leaving Japanese companies behind. When the Japanese government decided to pump life...
Ten Alternative Energy Speculations for 2008: Geothermal, Wind and Wave, and Thin Film Hype
This article is a continuation of my Ten Alternative Energy Speculations for 2008, with picks #8, 9, and10 published last Thursday. If you haven't already, please read the introduction to that article before buying any of the stock picks that follow. These companies are likely to be highly volatile, and large positions are not appropriate for many investors. My least risky picks are part of that same article linked to above; the moderately risky picks are here. This article contains the most speculative three picks. #3 Nevada Geothermal Power (OTCBB:NGLPF or Toronto:NGP.V) US$1.29 or CAD$1.26 Geothermal first started catching...
The Ghost of Solyndra Haunts Chinese Solar Stocks
Doug Young The solar sector’s slow recovery is receiving some new setbacks in the form of lawsuits by 2 bankrupt US companies against Yingli (NYSE: YGE), Trina (NYSE: TSL) and Suntech (NYSE: STP), the last of which is also in bankruptcy reorganization. Adding to the mess, Suntech has just disclosed that more of its European assets have been seized by the Italian courts, throwing yet another new complication into its ongoing reorganization. This growing tide of litigation is somewhat expected, as investors try to recover whatever money they can following the sector’s spectacular crash over the last two...
