News about Solar, Wind and alternative green power technologies

Solar Energy Companies are finding their way to make profit even during harsh time. Based on an analysis from Reuters, solar companies are going to see a brighter 2010 in comparison to 2009. Investors can cheer while returns of investment in solar companies are paying-off.

This year, 2009, has experienced unprecedented swings in the financial markets. The downfall brought through the credit crunch hasn’t left solar companies on the shore, they have drowned with a 50 percent decline in the price of solar photovoltaics (PVs). This has squeezed the profit of market leaders such as Q-Cells and First Solar Inc.

The fall in the price of solar modules have reached stagnate point or so called equilibrium. This has also positively been encouraged with a lower reduction in solar subsidies than expected in both Italy and Germany. Investors estimated that the incentives on solar energy were going to be cut far more.

The economic recovery is seeing a better future in 2010, with higher credit possibilities. This has been seen in the performances of low cost producers in China. However, prognosis are highly uncertain but on a 6 to 12 month perspective, the solar market is brighter and share prices are likely to rise, as said by Cowen and his co analyst Rob Stone.

Global Perspective on Renewable Energy

1. America

Piper Jaffray, analyst and Jessy Pichel forecast that the price of solar photovoltaics are subject to a further decline of around 15 percent in 2010. However, companies could anticipate the fall in profit return by improving cost structures. Moreover, lower prices of solar modules are likely to interest more investors and profitability could likely rise.

2. Germany

The German market has recently ignored positive facts proclaimed by the government for 2010 such as increasing subsidies and new solar projects. Based on the perspective from analyst Pichel, this will boost the market growth for solar-based companies. Also signs of doubling reliance on solar energy has been seen with the possible installation of 3 GW instead of 1.5 GW estimated.

The chief Executive of Q-Cells, Anton Milner predicts that the demand for solar modules will pick us as early as in the first half of 2010. This will generate an operating profit, while the opening nine months of 2009 accounted for a loss of around one billion of Euros. Other solar energy companies in Germany agreed with the increasing profit derived from ore sales in the coming year.

3. China

Companies in America such as SunPower and Firs Solar disappointed investors with their quarterly results. Their counterparts in China such as Trina Solar Ltd and Suntech Power Holding Co Ltd produced results above expectations. The companies experience a rise in profit and demand. They are setting early aims to increase operation capacity while having a possibility of ancillary benefits such as fall in the cost of polycilicon. This would reduce their cost of production through lower material costs and make them even more competitive in the industry.

Chinese companies are taking ground on a global arena. They are likely to increase their profit margins and even expand market share. This will keep pressure on other companies in Europe and America to anticipate the challenge.

A brighter future does not mean the best one. The peak of revenues for photovoltaic was seen in 2008 and this is not likely to be a tomorrow happening. Analysts are projecting that 2012 will be another peak year for the solar energy industry.

Reference:

http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5AM24F20091123?pageNumber=2&virtualBrandChannel=0&sp=true