Solars Could Suffer as U.K. Mulls Deeper FIT Cuts (FSLR) (STP) (JASO)
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Solars might trade lower moving forward, following reports Thursday that the U.K. is planning to trim its solar subsidies.
Additionally, energy ministers are also expected to shake-up wind power incentives from 2015, which will lower subsidies for onshore wind, but improve aid for wave and tidal power.
Discussions are ongoing about how much will be cut from the small-scale solar feed-in-tariff (FIT), according to the Financial Times. Speculation surrounds cuts of as much as 75 percent, though more might be possible. The move would be a blow to solar panel and module makers; subsidies would be cut from £0.43 per kWh (kilowatt hour) to just £0.09 per kWh.
Climate change minister Greg Barker is pushing for less-damaging cuts, but still something below what the level is currently set at.
In the U.K., solar installations have doubled to 85,000 which only began in April 2010. Solars have received 97 percent of FITs in September.
Some investors have stated that a 50 percent cut is already being anticipated by markets, but anything above and beyond that would be news.
Stocks to watch:
Additionally, energy ministers are also expected to shake-up wind power incentives from 2015, which will lower subsidies for onshore wind, but improve aid for wave and tidal power.
Discussions are ongoing about how much will be cut from the small-scale solar feed-in-tariff (FIT), according to the Financial Times. Speculation surrounds cuts of as much as 75 percent, though more might be possible. The move would be a blow to solar panel and module makers; subsidies would be cut from £0.43 per kWh (kilowatt hour) to just £0.09 per kWh.
Climate change minister Greg Barker is pushing for less-damaging cuts, but still something below what the level is currently set at.
In the U.K., solar installations have doubled to 85,000 which only began in April 2010. Solars have received 97 percent of FITs in September.
Some investors have stated that a 50 percent cut is already being anticipated by markets, but anything above and beyond that would be news.
Stocks to watch:
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