Solar Sector Weekly Notes – First Solar, Suntech Power & SunPower
Solarbuzz released the July 2011 edition of its U.S. Deal Tracker database this week. [1] The report highlighted the importance of the U.S. to the global solar industry. With 17-gigawatts (GW) of non-residential solar projects in the pipeline, the country represents the largest growth opportunity for solar companies across the globe. The report also mentions that the top three suppliers of photovoltaic (PV) components to projects in the pipeline are First Solar (NASDAQ:FSLR), SunPower (NASDAQ:SPWRA) and Suntech Power (NYSE:STP).
Below are some notes published this week from Trefis for those following the solar sector.
Loan Guarantees Help First Solar Shares Beam Higher
- Down 6% This Year, What’s Happening With First Solar Stock?
- Down 17% In The Last Six Months, Will First Solar Stock Recover Post Q4 Results?
- Up A Mere 15% In 2023, Is First Solar Stock Poised To Do Better In 2024?
- Down 30% From Highs Seen In May 2023, Where Is First Solar Stock Headed?
- Why Is The Hydrogen Theme Underperforming This Year?
- Why This Renewables Theme Is Underperforming In A Strong Market
First Solar (NASDAQ:FSLR) was granted loan guarantees worth $4.5 billion by the U.S. Department of Energy (DOE) recently. [2] First Solar’s share price saw a steady decline from a $170 high in February to less than $120 last month due to concerns about the company’s ability to sell its products at the rate it is producing them. But investor sentiments clearly have improved – indicated by the significant jump in share price since the announcement.
SunPower Building N. America’s Biggest Solar Roof in New Jersey
SunPower (NASDAQ:SPWRA) is thinking big – more so after the Total Group acquired 60% of the solar firm. The company followed up its recent launch of the most efficient mass-produced solar cell in the world with an announcement that it will soon start construction for the biggest solar roof in North America. SunPower has entered into a contract for a 1.1 million square-foot solar installation atop the Gloucester Marine Terminal. [3]
Suntech’s Improving Production Costs Support Outlook
Suntech Power (NYSE:STP) boasts of being the world’s largest manufacturer of crystalline silicon photovoltaic (PV) modules shipping 1,522 megawatt (MW) of PV modules in 2010. The company is also China’s largest US-listed solar player by market capitalization. We forecast an almost three-fold growth in its shipment figures over the next 5 years as the company forges ahead with building out its capacity. Looking ahead, Suntech will need to keep an eye on its production costs to ensure profitability with falling prices.
Notes:- US Photovoltaic Project Pipeline Soars to 17 Gigawatts, Solarbuzz Reports, PR Web, Jul 6 2011 [↩]
- First Solar Wins $4.5 Billion in Loan Guarantees From U.S.; Shares Climb, Bloomberg, Jun 30 2011 [↩]
- Holt to Build Largest Rooftop Solar Power Plant in North America at Gloucester Marine Terminal, SunPower Press Releases, Jun 21 2011 [↩]