This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Solar Stocks Rally on German Cabinet Vote

BERLIN ( TheStreet) -- Resolution to the ongoing feed-in tariff political battle in Germany has been sorely needed for solar stocks to stabilize, and early on Wednesday morning, both Reuters and Bloomberg reported that German Chancellor Angela Merkel's cabinet has agreed to the proposed cuts in the solar incentives.

Rooftop solar feed-in tariff cuts will drop by 16% starting July 1, while support for farmland-based solar projects will be eliminated, and ground-based solar more generally will see a cut of 15%. Solar built on contaminated land sites will only see tariff reductions of 11%.

Of course, the battle is not over yet. After being approved by Merkel's cabinet, the solar plan must be approved by the lower house of Germany's parliament, the Bundestag, though the press reports noted that Merkel's coalition holds a solid majority in the lower house.

Germany's government included some tough words for its own solar industry in a new report, saying the feed-in tariff cuts were necessary with the average sales price of a solar panel falling 40%, and with the new cuts, the German solar makers must work overtime to fend off competition from Chinese solar companies.

German solar shares saw their biggest gains in recent months on Wednesday, while U.S. traded solar stocks rallied significantly on Wednesday morning.

Canadian Solar (CSIQ - Get Report), which reported its earnings on Wednesday morning -- and missed on earning per share -- was up by close to 6% early during Wednesday's trading. Canadian Solar provided bullish guidance for 2010 .

Yingli Green Energy (YGE - Get Report) and JA Solar (JASO) were also leading the way in the solar rally, up close to 6% on Wednesday morning.

LDK Solar (LDK), which announced the resolution to a more than two-year-old lawsuit late on Tuesday that alleged violation of federal securities laws by LDK, was up near 4%.

-- Reported by Eric Rosenbaum in New York.


>>See our new stock quote page.

Follow on Twitter and become a fan on Facebook.

Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
LDK $0.00 0.00%
CSIQ $34.82 0.00%
YGE $2.02 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs