Solars Power Higher; Japan to Offer Generous Renewable Energy Subsidies (FSLR) (STP)

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Several in the solar sector are trading higher Monday following reports that Japan approved new measures to subsidize renewable energy.

Reuters cited Industry Minister Yukio Edano for the approval. Analyst firm CLSA estimates revenue from renewable generation and equipment could bring in over $30 billion by 2016.

Prompted by the March 2011 earthquake and subsequent tsunami which caused a meltdown at Fukushima Daiichi, Japan is instilling the subsidies to wane off of more expensive crude and liquefied natural gas for its energy needs.

For solar-generated electricity, the subsidy will be 53 U.S. cents per kilowatt hour (kWh), which is roughly double what Germany currently offers and three-times China's solar subsidies. The outlook is a good one; Germany has tripled renewable energy installations since subsidizing began about 10 years ago.

Prior to the Fukushima disaster, Japan drew 30 percent of its energy needs from nuclear and 60 percent from oil, coal, and nat gas. Since Fukushima, however, the country has shifted to relying on coal, oil, and nat gas for 90 percent of its energy needs.

Japan sees renewable energy capacity at 22-GW by March 2013, from 19.45-GW currently. Of the total, about 2-GW is expected to be solar panels.

CLSA Asia-Pacific sees solar panel capacity reaching 19-GW by 2016, from under 5-GW currently.

Up on the session today include:

First Solar (Nasdaq: FSLR);
SunTech Power (NYSE: STP);
JA Solar (Nasdaq: JASO);
JinkoSolar (NYSE: JKS);
SunPower (Nasdaq: SPWR); and
LDK Solar (NYSE: LDK).