Solar Stocks Today

What’s the cause behind the pop in solar stocks today?

Bloomberg reports, China introduces subsidy for solar projects China’s government will offer 20 Yuan/Watt for projects over 50KW.

Loving it.

That translates to around $3/watt subsidy. To put that in perspective: When California started their solar initiative the subsidy was around $4 but an installed system cost around $10/watt. As time has passed, the subsidy has diminished to $1.90 (where it is now). Some solar manufacturers are saying they just broke the $1/watt barrier to produce panels. If they really can produce panels for less than $1 then that $3/watt gov’t subsidy means a fat profit margin. The idea is that, since it’s just technology, others will race into the market and will see a downward sloping long term supply curve (like LCD monitors?) and… our energy problems will be over! LOL… so much for the optimist in me. I just bought a load of panels for $3.25/watt retail price. I’ll get a rebate and a credit so my installed cost will be around 1.75/watt. Had I been in China, my cost would be .25/watt! That would give me a payback on my system in less than a year!