sirfisup

Chinese Lawmakers' New Renewable Energy Policy Will Benefit Solar Companies

What you failed to mention in your comparison of Yingli and STP is that STP has a huge advantage over YGE in the technological advancements it has already made with their Pluto Technology and is already working on 2nd and 3rd generation amorphous silicon solar cell advancements of which IMHO will position STP well ahead of YGE and matter of factly will leave them in the dust. STP is a much better positioned company regarding product diversification and is far better positioned to resume significant growth as they now are well positioned for larger scale utility projects. STP ownership made only one mistake and perhaps it will not be the impediment that most people think and that was to negotiate long term silicon contracts and when the economy went south had to write down their losses which were principally overinflated payments for raw materials. Fact is that STP did the smart thing and came up front and center unlike LDK which likes to decieve its stockholders as witnessed by their massive losses in 4th Q and very poor 1st Q forecast. STP also added to their cash position and is being conservative with Capex so that they will meet their debt obligations. Fact is that STP's diversification with BIPV thin film and increased cost efficiencies through Pluto will make it clearly the most cost efficient PV company in China and will ultimately be the lowest cost per watt producer of panels as solar cell efficiencies improve and raw materials remain at their current prices. When and if prices for raw materials inccrease which many people feel will happen with rebound in technology sector for silicon demand expected in 4th Q of 2009. Either way STP will benefit from new reduced raw material contract pricing for silicon and if silicon demand increases STP will be miles ahead from their competition because they have secured long term contracts while competitors will have to pay a premium for silicon when spot prices spike. Don't discount STP's ability to navigate through these troubled times and when the business climate should change I expect STP to be well positioned for the world adoption of solar as cost per watt continues to plunge and solar becomes more cost efficient than coal.

Will U.S. Recession Lead to Solar Depression?

Although your article was published in January I believe it has strong merit. I believe that solar will be the beneficiary of extended tax credits and because of the recent heightened awareness about escalating oil prices more pressure is being placed upon our goverment representatives to get something done especially with an election year around the corner. I doubt that many in the house or senate want to be known as obstructionists in helping our nation ween itself off Middle East oil. Although the solar industry is extremely volitile the companies that play in this space are all reporting record sales and profits. The recent discussion of lower subsidies in Spain and Germany has caused a major and unjust pullback and many of the analysts that cover the sector have also said that there are major free cash flow problems with many of these companies and that they will not be able to expand production because of the tightening credit markets. I don't foresee this to be a problem for there is sustainable demand for solar well into 2010 and beyond and with silicon prices soon to come down it will significantly increase the adoption rates and bring solar to grid parity no later than 2012. Any disruptive technology that offers significant benefits will most certainly have its infancy problems just like any major industry that gets off the ground. Fact is that major venture capital is pouring in at record levels and huge technology companies like Intel, IBM, Applied Materials just to name a few are rushing in just like the miners did during the gold rush. More and more large solar projects are coming online and more are being contracted with major utility companies and it is just a matter of time before every major oil company with the exception of BP and Shell will recognize that "if you can't beat them then join them"