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The 50MW New Mexico solar project First Solar (FSLR) recently bought might sell electricity at a...
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Friday, February 1, 6:52 PM ETThe 50MW New Mexico solar project First Solar (FSLR) recently bought might sell electricity at a rate less than half that typically charged by new coal plants, based on a recent regulatory filing (.pdf). Maxim's Aaron Chew, who has been bearish on FSLR for some time, notes the rate is also less than half what First Solar will charge for its Antelope Valley, Topaz, and Agua Caliente projects. However, government incentives will likely improve the project's ROI.
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Other energy industries, notably ethanol, but oil and gas as well, benefit from assorted mechanisms that are either direct or indirect subsidies and don't appear in any real danger of losing them either.
Energy security is arguably both important strategically as well as from the perspective of how effectively it supports domestic manufacturing. With some measure of manufacturing abandoning formerly cheap int'l locations and returning to the US, cheap energy is arguably a strong incentive, as are increasing offshore labor costs and political and geopolitical instability, or the rule of law.
Don't bet on the subsidies running out....
There will be a boom of producing electricity at home to power ones car and in ten years time it will be part of our lives just like cell phones and the internet were unthinkable not that long ago and now we take it for granted.