AP
Solar Tech Companies Up on Calif. Measure
Thursday January 12, 6:10 pm ET
Solar Tech Companies Up on California Solar-Power Measure
NEW YORK (AP) -- Shares of solar-energy technology companies rose sharply Thursday, with several chalking up 52-week highs, as California regulators approved a solar-energy package.
The plan is the largest solar energy policy ever enacted in the United States: an 11-year, $3.2 billion incentive program aimed at spurring installation of solar panels.
"It's a very large measure and it's a long-term measure so it provides solar companies with incentives and visibility to undertake expensive expansion programs," said Jefferies & Co. analyst Jeffrey W. Bencik, noting that the industry already can't meet demand.
The incentive represents roughly 3,000 megawatts of production, which is 2.5 times worldwide solar sales in 2004, he said.
Bencik believes the California plan, which would offer incentives for solar generation ranging from 1 megawatt to 1 gigawatt, is second in size only an incentive program in Germany that began in 2004. There are also plans on the books in a half dozen other countries.
"We're in the nascent stages of growth in this industry and that growth will be spread out over many countries over time," he said.
The industry already has delays in meeting demand because of capacity constraints and shortages of certain raw materials such as silicon. Though expansion plans are in the works, the results will still leave some pent-up demand, Bencik believes.
"You're not going to see an immediate impact in terms of increased production because it takes a year to 18 months to build a new facility," he noted.
Energy Conversion Devices Inc. closed up $2.09, or 4.3 percent at $50.63 on the Nasdaq Stock Market.
Evergreen Solar Inc. closed up 22 cents, or 1.8 percent, at $12.47 on the Nasdaq.
Suntech Power Holdings Co. closed up $1.02, or 3.1 percent, at $34.02 on the New York Stock Exchange.
SunPower Corp. closed down $1.90, or 5.2 percent, at $34.85 on the Nasdaq.
biz.yahoo.com |
