Solar Photovoltaic

by Debra Fiakas CFA Shares of two solar panel producers appeared on one of our favorite stock screens the other day  -  energy stocks that have traded downward to a point they appear oversold.  Trina Solar, Ltd. (TSL:  NYSE) recently closed at $11.22, down 39% from its 52-week high set in early March this year, but well above where the stock was trading a year ago.  RenaSola, Ltd. (SOL:  NYSE) has followed a similar track, recently closing at $2.61 well above its 52-week low.  The question for investors is whether investors should take advantage...

Tom Konrad CFA The last day for a solar developer to submit an application for the Treasury’s 1603 grant program was September 30th, and only for grandfathered solar projects which broke ground before the end of 2011. Solar panel prices have continued to drop this year, but solar project development remains a capital-intensive business.  The 1603 program allowed solar developers to monetize the solar investment tax credit (ITC) much more quickly than they could otherwise, and this essentially reduced their cost of capital.  As the rush of projects begun before the end of 2011 are completed, developers are looking...

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...

On Monday, I told readers that I was getting out of companies some which I feel are likely to need to raise new money over the next couple years.  I also provided a list of stocks I will be buying when I judge we're near the bottom.  This is the first in a series of short articles about those stocks.  Carmanah Technologies (CMHXF) I've mentioned Carmanah Technologies (CMHXF) in passing in articles about LED companies.  I first became interested in Carmanah in 2005. The company's integrated LED-solar lighting solutions caught my attention because they were (and are) economic regardless...

Doug Young A few of the latest headlines reflect a cooling appetite by banks for funding solar energy related projects, creating a worrisome vacuum that Beijing may need to fill as it seeks to stop struggling sector from sinking further still. Two of the latest such headlines look like particular cause for worry, with Canadian Solar (Nasdaq: CSIQ) taking over financial responsibility for a solar power project from one of its construction partners for unspecified reasons that I suspect are related to waning interest by banks in funding such projects. (company announcement) Another similar recent domestic media report...

Doug Young Regular readers will know I’m a bit bearish lately on the solar panel manufacturing sector, largely because I believe its recent rebound is being fueled as much by hype as real business after a prolonged downturn. A new report on some of the sector’s so called “growth engines”, coupled with a separate report on a dispute at one of the top surviving players, are adding fuel to my skepticism that the sector’s recent sharp rebound isn’t really happening. At the very least, the recent reports indicate the rebound isn’t nearly as strong as many are claiming,...

By Harris Roen The latest earnings numbers released by SolarCity (NASD:SCTY) show a mixed bag of results. Total revenues have been rising for the past 4 quarters, and the number of customers SolarCity is signing up continues to soar. All is not rosy, though, as operating expenses relative to net loss continue to increase. This article dives into the reported numbers, looks at important customer trends, and asks whether SolarCity is still a stock worth investing in. Revenues: Not a record, but steady growth Revenues for the third quarter came in strong for SolarCity, at $48.6...

Doug Young A mini flurry of news from embattled solar panel makers seems to have the same singular message, designed to tell investors that they can survive an industry crisis now entering its third year. Of course the companies that emerge when the crisis finally subsidies could be far different from the ones that went into the crisis, which seems to be the message from LDK (NYSE: LDK) in its latest announcement involving its slow takeover by a Chinese investor. At the other end of the spectrum, the message from Canadian Solar (Nasdaq: CSIQ) is a more upbeat,...

by Paula Mints Outsourcing has been a common practice in the photovoltaic industry since…always. Ignoring it in favor of reporting higher shipment numbers has been a common practice since…always. There is more outsourcing now than there was ten years ago because the industry is bigger. When the PV industry was at megawatt levels, outsourcing was at megawatt levels. Now that the industry is at gigawatt levels, outsourcing is at gigawatt levels. Today’s outsourcing is also more acceptable in the past everyone did it quietly, today it is out in the open. Yet despite this openness and acceptability,...

...and why it will survive. Paula Mints The photovoltaic industry is currently in a state of extreme contraction brought about by overbuilding, which was brought about by the belief that the feed-in tariff incentive model would continue expanding from region to region and which was exacerbated by decades of fighting for profits and incentives in a world that largely considered the PV industry either a science experiment or the lifestyle choice of hippies. The current infighting has made enemies of colleagues. Artificially low prices have encouraged governments to believe that enough progress has been made,...

Doug Young After a massive rally over the last year, shares of solar panel makers could be set for a few months of winter following a disappointing earnings announcement from superstar Canadian Solar (Nasdaq: CSIQ) and a debt default from second-tier player Chaori Solar (Shenzhen: 002506). Such a correction was almost inevitable after last year’s huge rally and shouldn’t be cause for concern among long-term buyers of shares in top players like Canadian Solar. But shareholders of second-tier firms like Chaori might think strongly about selling their stock, as these smaller companies could easily end up getting wiped...

Steve Leone   Delays and cancellations photo via Bigstock Now, energy giant General Electric (GE) said it is putting plans for its Aurora, Colo., plant on hold for 18 months in reaction to the continued drop in crystalline silicon solar panels. When the company announced its plans to jump into American thin-film manufacturing nine months ago, it did so in grand fashion. Company officials unveiled a plan for a 400-megawatt (MW) facility that would churn out cadmium telluride (CdTe) panels, the same thin-film technology deployed by...

by Debra Fiakas CFA Renewable energy retailer SolarCity has filed for an initial public offering of 10 million shares of its common stock and a few shares owned by existing shareholders.  The offering is valued at between $130.0 million and $150.0 million based on an anticipated share price between $13 and $15 per share.  SolarCity expects its shares to trade on Nasdaq under the symbol SCTY. Proceeds raised by SolarCity will be used support acquisitions of complementary operations.  Proceeds could also be used to support SolarCity’s capital spending program as it seeks to extend its distributed network...

by Paula Mints Every year at this time lists of lessons learned during the previous year give way to lists of top ten PV manufacturers. It’s time to ask what these lists mean, and whether they have a purpose to the ongoing growth and health of the photovoltaic industry. So Many Numbers, So Little Time There is more than one way to size the photovoltaic industry and unfortunately, much of the time are the metrics are considered to be synonymous.  The PV industry is sized by capacity, shipments, production, module assembly capacity, installations and...

by Paula Mints In June, Tesla (TSLA) announced it would shut down some of its solar installation stores, end its agreement to sell solar systems through Home Depot and either lay off or reassign affected workers. Tesla indicated that this was part of its overall plan, that is, business as usual. Comment: In 2016, Elon Musk, oops, Tesla adopted, oops, acquired, SolarCity from his cousins, oops, SolarCity shareholders for $2.6-million, oops, $2.6 billion, ramming the deal down skeptical shareholder’s throats, oops, making an economically rational case for the deal. A shareholder lawsuit is working its way through the courts. SolarCity, the pioneer...