Solar Stocks Weak On Lower Crude and More Fears About Spain (SPWR, FSLR, SOLF, CSIQ)

July 22, 2008 2:32 PM EDT

Solar stocks are under pressure again today due to lower crude prices (-$3) and continuing fears about Spanish subsidy cuts. Citigroup notes that indications are that Spain is leaning towards the 300MW cap.

In a research note, Citi said, "Late Monday the Ministry of Industry sent a draft of the PV Decree to National Energy Commission (CNE) - a consulting body that offers a technical opinion before final passage. The terms - unchanged from the Ministry's initial proposal in July - call for a feed-in-tariff of E0.29 for ground-mount and E0.33 for rooftop w/an annual installation cap of 300MW. While the Ministry appears to be targeting a late-Summer passage of a new royal PV decree, theoretically CNE could still come back w/recommendations that change the structure of the final decree - albeit indications are that Spain is leaning towards the 300MW cap. While this is hardly a huge negative surprise, stocks have rallied in recent days partially around hope of a ~500MW cap. It is important to remember that the market has never seen such a big decline in such an important mkt (~35-40% of all incremental installs in '08)."

Solar Stocks Today:

SunPower (Nasdaq: SPWR) 6% LOWER
First Solar (Nasdaq: FSLR) 6% LOWER
MEMC Electronic (NYSE: WFR) 5.5% LOWER
Solarfun Power Holdings Co. Ltd. (Nasdaq: SOLF) 5.6% LOWER
Evergreen Solar Inc. (Nasdaq: ESLR) 2.3% LOWER
Suntech Power Holdings Co. Ltd. (NYSE: STP) 6%
Trina Solar Ltd. (NYSE: TSL) 4%
Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) 6% LOWER
ReneSola Ltd. (NYSE: SOL) 6.5% LOWER
Canadian Solar Inc. (Nasdaq: CSIQ) 13.8% LOWER
Claymore/MAC Global Solar Energy ETF (NYSE: TAN) down 4.4%

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