Solar Photovoltaic

Doug Young The nascent state-led bailout of China's struggling solar industry has taken another step forward with word that LDK Solar (NYSE: LDK) has just sold a big chunk of itself to a partly state-owned consortium for enough cash to perhaps fund its operations for another month or 2. This new rescue package values LDK at just $140 million, which is probably still too high a figure for one of China's weakest solar panel makers in an industry where everyone losing big money due to a huge supply glut. Let's take a closer look at this latest announcement...

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,...

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...

To win the U.S. solar installation game, SolarCity (SCTY) continues to go vertical and thin its margin stack... so what'll be next? James Montgomery SolarCity (SCTY) is acquiring Zep Solar and its rackless mounting design in a $158 million stock deal, illustrating the growing importance of improving costs and complexity in residential solar. Much of the cost-cutting in solar PV has been shouldered by the upstream manufacturing side, but half the costs or more in a residential solar PV system come from the softer side, and they'll have to keep coming down dramatically to support widespread deployment of...

Dana Blankenhorn One thing any new industry needs to do is beware of its own hype. I still remember, almost 20 years ago now, sitting in on the launch of a tablet PC called Momenta. I was just then finishing a book for New Riders to be called “A Guide to Field Computing,” all about hand-held computers and terminals that could collect, transmit and calculate outside. I had reason to believe. But I didn't believe. Yes, they had big-time backing, big names in the executive suite. Yes, the press release was slick, glossy and over-sized. Yes, the shrimp...

I don't write frequently about solar stocks, especially photovoltaic (PV) manufacturers.  While the industry is almost certain to be a spectacular growth story, it's also a story that everyone already seems to know about.  Trader Mark put it well: "these stocks are too driven by retail hands."  The PV story clicks with people, and when that happens, they often buy stocks with little regard to what they are worth.  PV stocks are so psychological, we'd all do well to lie down on a couch before buying. As the IRS is unlikely to allow psychotherapy as an "investing expense," I...

Doug Young Despite China's best efforts to avoid it, a much needed day of reckoning seems to be drawing nearer for the bloated global solar panel industry, which should include a major shake-up for Chinese firms that supply over half the world's output. The latest signs of a looming judgment day are coming in news that US firm MiaSole has just agreed to be purchased by a Chinese buyer, and from Chinese giant LDK Solar (NYSE: LDK), which disclosed it has received a brief reprieve from its lenders for repayment of its rapidly souring debt. Of course, the...

Tom Konrad, Ph.D. The last panel I attended at Solar 2009 focused on investment opportunities in Solar.  This is the first of several entries with ideas from the speakers.   They were: Allen Goodman, of ECG Consulting Group James Groelinger, of Bellegrove Associates J. Peter Lynch, of Salem Financial, Inc. Pradeep Haldar, Ph.D., MBA of the University at Albany Each had perspectives on the solar (mostly photovoltaic (PV) industry, and struck me as very knowledgeable in the field.  The caliber of the industry and investment knowledge on display impressed me, so I'll share with readers some of the...

Sean Kidney Last week we blogged that  SolarCity (SCTY) and Credit Suisse were about to issue a new $54.4 million, climate bond – a rooftop solar lease securitization. It’s out: BBB+, 4.8%, 13 years. The long tenor is interesting – and great. And S&P’s BBB+ rating suggest those credit analysts may be beginning to understand solar. This bond has been long-awaited by the green finance sector, who are hoping it’s the harbinger of things to come. I did get the chance to look at the S&P opinion. Their rating reflected, as they put it, their views on over-collateralization (62%...

by Doug Young Following reports last month of the imminent formation of a major new private equity investor, media are now saying the company, China Minsheng Investment, has formally registered and is gearing up to make its first investments. The new company certainly has the resources and connections to quickly become a major player on both the domestic and global private equity scenes, with an initial 50 billion ($8 billion) in registered capital. Now it appears the company will start by helping to consolidate China’s embattled solar panel-making sector, which will become its first focus area....

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 Canadian Solar "caps" 2013 with big solar deals The year 2013 will go down as a major turning point for China’s solar panel makers, with some names emerging as new sector leaders after a prolonged downturn while others quietly disappeared. The latter category saw former leader Suntech (OTC: STPFQ) go bankrupt and LDK (NYSE: LDK) quietly sell off many of its assets, while the former category has seen Canadian Solar (Nasdaq: CSIQ) and Shunfeng (HKEx: 1165) emerge as names to watch in the future. Canadian Solar...

Tom Konrad CFA Clean Edge's Clean Energy Trends 2012 contains some disturbing predictions for solar stock investors. Clean Energy Trends 2012, the annual report from Clean Edge by Ron Pernick, Clint Wilder, and Trevor Winnie, was released today. On the surface, it seems like good news for the solar sector.  Although headlines in 2011 featured much bad press for Solar PV, the industry has not been "withering on the vine." Here are some key points in the report:   Combined global revenue for PV increased from $71.2 billion in 2010 to $91.6 billion...

Mea Culpa. We often get request from readers to add companies to our Alternative Energy Stocks list.  Since the field is very active, we do some quick checks to make sure that the companies at least: Provide enough information to make an informed investment decision. There's nothing obvious which indicates serious investors wouldn't be interested. We by no means feel that everything in the list is a good investment, but we do feel that our list a good place to start your own research. Usually. Last weekend, we received a request from a shareholder to add Power-Save...