Solar stocks lower again; investors worried about Chinese draft proposal

|By:, SA News Editor

The Chinese government, which has a 12GW 2014 solar installation target, wants to see 8GW of installations involve distributed solar systems (such as those installed on residential and commercial buildings), and just 4GW of higher-margin utility-scale deployments.

Credit Suisse notes investors are concerned the 12GW target won't be attainable if utility-scale installations are capped at 4GW. It thinks Yingli (YGE -5.9%), Trina (TSL -7%), and JinkoSolar (JKS -5.3%) have the most to lose if such a cap is implemented.

Nomura is less concerned, noting most companies it has talked to believe 4GW "will be more of a guideline rather than a firm cap." The firm adds China's solar policy discussion is "fluid," and that the government remains committed to supporting solar adoption.

Notable solar decliners (in addition to the aforementioned companies): HSOL -12.1%. SPWR -5.6%. CSUN -5.5%. JASO -3.4%. DQ -2%.

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