LDK Falls on Weaker-than-Expected Q2 Revenue Outlook

Posted by Tiernan Ray
barrons.com

Shares of Chinese solar panel technology maker LDK Solar (LDK) are coming under pressure in after-hours trading following the company’s announcement this afternoon that it is raising its forecast for multicrystaline solar wafer shipments for the second quarter ended in June, while presenting a revenue outlook below estimates.

LDK says it shipped 220 million to 230 million megawatts worth, versus a prior forecast range of 200 to 220 megawatts. However, revenue is forecast to come in at $215 million to $225 million, which is below the average analyst estimate of $247 million.

Signs of further pricing pressure in solar? You tell me, dear reader. The company also announced it secured a loan from China’s Export-Import Bank for $73 million and touted $250 million in cash on its books.

LDK CEO Xiaofeng Peng said he was pleased with the improvement in market demand in the quarter, and that the company is on track to increase its polysilicon manufacturing capacity from 1.5 gigawatts at present to 2 gigawatts by the end of this year.

LDK shares are down 17 cents, or 1.6%, at $10.74, after falling 3% during the regular session.

LDK Solar Provides Business Update

Thursday July 2, 2009, 4:15 pm EDT

XINYU CITY, China and SUNNYVALE, Calif., July 2 /PRNewswire-FirstCall/ — LDK Solar Co., Ltd. (LDK), a leading manufacturer of multicrystalline solar wafers, today provided an updated outlook for the second quarter ended June 30, 2009. For the second quarter of 2009, LDK Solar estimates shipments between 220 and 230 megawatts (”MW”). This compares to its previously issued guidance for the second quarter of 2009 of wafer shipments in the range of 200 to 220 MW. The company expects to record between $215 and $225 million in revenues.

LDK Solar additionally provided an update on its financing activities. The company secured a loan in the aggregate principal amount of RMB 500 million (equivalent to approximately US$73 million), with a term of one year, from The Export-Import Bank of China. The company also secured a loan in the aggregate principal amount of RMB 500 million (equivalent to approximately US$73 million), with a term of three years, from Huarong International Trust Co., Ltd. to support LDK Solar’s polysilicon plant construction. Huarong International Trust Co., Ltd. is a state-controlled company permitted under the relevant PRC laws and regulations to provide enterprises with financing facilities. LDK Solar had a healthy cash position of more than $250 million and pledged bank deposits and time deposits of more than $170 million as of June 30, 2009.

“During the second half of the second quarter, our wafer shipments were driven by stronger than expected demand,” stated Xiaofeng Peng, Chairman and CEO of LDK Solar. “Our annualized wafer capacity at June 30, 2009 reached 1.5 gigawatts (”GW”). We are encouraged by the recent improvement in market demand and expect to resume the expansion of our wafer plant with the goal of reaching 2.0 GW annualized wafer capacity by the end of 2009.”

“The construction of our polysilicon plant continues to remain on schedule. The second train is targeted to reach mechanical completion in the third quarter of this year and the third train is expected to reach mechanical completion in the first quarter of 2010. We are very pleased to receive continued financial support for our growth plans from our local banks and view this as a testament to the promising future of the solar industry in China,” concluded Mr. Peng.

This outlook for the three months ended June 30, 2009 is an estimate. Results are subject to change based on further review by the management. LDK Solar plans to report its full second quarter 2009 results in mid-August 2009. Once the reporting date is finalized, LDK Solar will issue a press release announcing the date and details of its second quarter conference call.

J.P. Morgan Upgrades ASTI, ESLR, SPWRA; Downgrades FSLR; Starts ENER With Overweight

Posted by Eric Savitz
barrons.com

J.P. Morgan analyst Christopher Blansett this morning shuffled his ratings on some solar stocks, advising investors to “shift to a more defensive stance.” For the second half, he expects “an uncertain landscape for solar energy companies with both positive and negative forces in play that are likely to cause solar energy stock prices performance to be choppy and relatively range bound.”

Here’s a rundown on his revised ratings:

* Energy Conversion Devices (ENER): Launches with Overweight rating. “We think the company is currently trading like a value stock while participating in a high-growth industry.” He writes ENER has been one of the most aggressive in cutting capital spending and conserving cash, “causing us to believe the stock has limited downside risk.”
* Evergreen Solar (ESLR): Upgraded to Overweight from Underweight, “as there appear to be few expectations built into this stock.” He asserts that the stock trades at a significant discount to peer module makers due to its historical poor product development performance, but that the company’s new Devens facility is operating smoothly, allowing ESLR to participate in the next demand upturn and perform at least in line with peer module makers.
* Ascent Solar (ASTI): Upgraded to Neutral from Underweight, “as the company looks to be ahead of schedule in terms of product development. A new focus on military and aerospace applications is “very positive as it allows Ascent to sell high-margin products with little competition,” although he adds that “risk still remains as the company has yet to ramp into full production.”
* First Solar (FSLR): Downgraded To Neutral, from Overweight. “We the current stock price does not reflect a potential negative margin reset or the possibility Germany could make a larger than scheduled subsidy reduction in 2010,” he writes. The analyst worries that crystalline silicon module makers who are benefiting from low poly prices will continue to price aggressively, even at their own cash costs.
* SunPower (SPWRA, SPWRB): Upgraded to Neutral from Underweight. “SunPower will benefit from lower poly costs and a rebound in the U.S. market, but is spending excessive cap ex in our view and is fighting a declining module ASP trend.”

In today’s trading:

* ENER is up $1.12, or 7.78%, to $15.44.
* ESLR is up 29 cents, or 13.5%, to $2.44.
* ASTI is up 15 cents, or 1.9%, to $8.05.
* FSLR is up 50 cents, or 0.3%, to $155.79.
* SPWRA is down 41 cents, or 1.5%, to $26.65.

Yingli Green Energy Selected by SDIC Huajing as PV Module Supplier for Its 10 MW On-Grid Solar Plant in Dunhuang

Thursday July 2, 2009, 9:23 am EDT

BAODING, China, July 2 /PRNewswire-Asia-FirstCall/ — Yingli Green Energy Holding Company Limited (YGE; “Yingli Green Energy” or “the Company”), one of the world’s leading vertically integrated photovoltaic (”PV”) product manufacturers, today announced it has been selected by SDIC Huajing Power Holding Co., Ltd. (”SDIC Huajing”), a subsidiary of the State Development and Investment Corp. (”SDIC”), to supply PV modules for a 10 MW on-grid solar plant in Dunhuang, Gansu Province, which has been approved by the provincial Development and Reform Commission in Gansu.

“We are pleased to be partnering with Yingli Green Energy, one of the leading global manufacturers of PV modules, to develop the Dunhuang project together,” commented Mr. Weidong Wang, General Manager of SDIC Huajing. “As a leading state owned electricity supplier, we have both the responsibility and opportunity to make renewable energy a reality in China, and we believe this 10 MW project demonstrates our commitment to this goal. Our advantage lies in our ability to leverage our established network of existing traditional power projects and manpower already on the ground in Gansu. We are confident that western regions such as Dunhuang will be big markets for solar power as they receive abundant natural sunlight and local governments are very open to investments by solar companies.”

“We are very pleased to have established this strategic alliance with SDIC Huajing,” commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “As part of our strategy to build a greater presence in China’s domestic solar market, we are seeking to establish strategic relationships with leading grid companies, such as SDIC Huajing, whose wealth of experience in China’s power supply market gives them unique insights into the domestic solar market.”

Mr. Miao continued, “Moreover, the launch of this on-grid solar plant in Dunhuang demonstrates the Chinese government’s commitment to developing the renewable energy sector in China. As a leader in the global PV industry with more than ten years’ experience and a proven track record in key global solar markets, we believe Yingli Green Energy is well positioned to continue capturing growth both in the China market and worldwide.”

About SDIC Huajing Power

SDIC Huajing Power is a Shanghai-listed company engaged in investment, generation, operation and sale of electric power. The Company operates power generation plants in Gansu, Yunnan, Jiangsu, Fujian, Anhui and Guangxi provinces, China. By 2010, SDIC expects that 3% of its generators will be powered by non-water renewable energy, and by 2020, it expects that figure to rise to 8%.

ICP Solar Secures Licensing Agreement with Energizer

Positions Company for Further Global Expansion

Thursday July 2, 2009, 8:00 am EDT

MONTREAL–(BUSINESS WIRE)–ICP Solar Technologies Inc. (ICPR.OB), a developer, manufacturer and marketer of proprietary solar panels and products, today announced that it has signed a global licensing agreement with Energizer (ENR). Under the terms of this agreement, Energizer, one of the world’s largest manufacturers of primary batteries and flashlights, will grant ICP Solar the global rights to its trade name for solar-powered chargers and related products. The agreement, to run three (3) years, takes effect immediately.

“Teaming with Energizer is a very significant achievement for ICP Solar and speaks to both the high quality of our products as well as our reputation for technology innovation,” said Sass Peress, CEO. “Energizer is a leader in providing portable power for numerous applications worldwide, and we are proud to be working with such an esteemed organization going forward. We will begin rolling out products in North America as soon as the third quarter and anticipate these sales will further bolster our financial performance heading into 2010. We plan to launch two dedicated websites – www.energizersolar.com and www.energizersolar.eu – later this year, as the international nature of this agreement is expected to provide immediate access to a host of new geographic markets. Energizer®-branded solar chargers will be sold in tandem with rechargeable batteries, serving the growing demand for renewable, portable power.”

“We are pleased to enter into such an important strategic relationship with ICP Solar,” said Danielle Kyriakos, Director of New Business Development of Energizer. “Energizer is committed to providing innovative solutions to power people’s lives and we know that solar is a power application that consumers are looking for to help them Keep Going. We look forward to a long and productive partnership with ICP Solar.”

About Energizer:

Energizer Holdings, Inc. [NYSE: ENR], www.energizer.com, headquartered in St. Louis, Missouri, is one of the world’s largest manufacturers of primary batteries, battery-powered devices and flashlights. Energizer, a global leader in the dynamic business of providing portable power geared toward the new digital age, offers a full portfolio of products including the Energizer® MAX® premium alkaline brand; Energizer® Ultimate Lithium; Energizer® Advanced Lithium and Nickel Metal Hydride (NiMH) Rechargeable batteries and chargers.

The Energizer® product line also includes specialty batteries for hearing aids, health and fitness devices, as well as for keyless remote entry systems, watches and other uses. Through its flashlight and lighting products unit, Energizer helps bring consumer insight and innovation to these important household devices. Energizer continues its role as a technology leader with Energizer® Energi To Go®, portable battery powered chargers for cell phones. Additional information may be found at www.Energizer.com.

Akeena Solar Converts Silver Mountain Vineyards to 100 Percent Solar Energy

Innovative Triple Green Project Utilizes Award-winning Solar Panels to Support Sustainable Practices at Organic Vineyard

Wednesday July 1, 2009, 7:30 am EDT

SANTA CRUZ, Calif., July 1, 2009 (GLOBE NEWSWIRE) — Akeena Solar, Inc. (AKNS), a leading national installer and distributor of solar power systems, today announced the installation of its award winning Andalay solar panel system at Silver Mountain Vineyards, a certified organic vineyard and winery nestled in the Santa Cruz Mountains in Northern California.

The 46-kilowatt system incorporates 264 Andalay solar panels and will generate 100 percent of the winery’s electricity needs. The panels, which are situated on a newly built 6,000 square foot roof, serve as an integral part of Silver Mountain’s “Triple Green Project,” an innovative multi-use project designed to curb the winery’s electricity and water use. The roof will shade the winery and reduce refrigeration requirements, as well as contributing to a new rainwater collection system and fully support the energy requirements of the winery operations, office and residence.

“With nearly a decade of successful solar installations within the wine industry, we were able to provide real world expertise to meet the unique needs of Silver Mountain Vineyards,” said Chuck Chagrin, Akeena Solar vice president for commercial sales. “With our sleek and high performing Andalay system, we were able to achieve Silver Mountain’s goal of being entirely solar-powered while preserving the expansive views across the mountains that its visitors enjoy.”

The vineyard has been certified organic by the California Certified Organic Farmers (CCOF) since 1991, and was farmed organically since its inception in 1978.

“Silver Mountain was built with a fundamental concern for the environment and has always been a proponent of sustainable and organic practices for viticulture and other food sources,” said Jerold O’Brien, owner of Silver Mountain Vineyards. “Using solar electricity is a natural extension of our sustainable value and the cost savings make sound business sense. Akeena’s experience in providing solar to the wine industry made the company a natural choice to help us convert to 100 percent clean, renewable electricity.”

The completion of Silver Mountain Vineyards’ solar installation adds to Akeena Solar’s growing roster of more than 20 wineries, vineyards and natural resource companies that Akeena has helped go solar. With more than 1.4 megawatts of solar installed, Akeena Solar further solidifies its position as the leading Northern California solar installer dedicated to assisting eco-conscious businesses meet their environmental and bottom line business goals.

About Silver Mountain Vineyards

Silver Mountain is celebrating its 30 year anniversary producing handcrafted premium wines from its mountaintop winery in the Santa Cruz Mountains. Silver Mountain is a strong proponent of organic and sustainable practices, uses winegrapes from sustainable vineyards, and grows exclusively organically in its estate vineyards. Silver Mountain is known for its Chardonnay, Pinot Noirs, and its Bordeaux blend, called ‘Alloy’. Handcrafted with a passion for quality, Silver Mountain’s wines possess exquisite, complex flavors that are delicious now and also benefit from aging. Silver Mountain is located between Los Gatos and Soquel, California; PO Box 3636, Santa Cruz Mountains, CA 95063; 408-353-2278; info@silvermtn.com; www.silvermtn.com.

LDK Solar Partners With SAEM-Kerself Group for Development of PV Plants in Italy

Wednesday July 1, 2009, 3:15 am EDT

XINYU CITY, China and SUNNYVALE, Calif., July 1 /PRNewswire-FirstCall/ — LDK Solar Co., Ltd. (LDK), a leading manufacturer of multicrystalline solar wafers, today announced that it has signed an agreement with SAEM Srl (”SAEM”), a primary system integrator within the PV sector, to build five one-megawatt (”MW”) PV plants in the Apulia region of Italy. Construction will start in July and is expected to be completed by November of this year. LDK Solar will supply wafers for the PV project and SAEM will provide engineering, procurement, and construction services and system integration.

“We are very eager to increase LDK Solar’s presence in Italy,” stated Xiaofeng Peng, Chairman and CEO of LDK Solar. “The Italian PV market continues to be one of the most interesting in Europe and is forecasted to grow significantly over the next three years. Our agreement with SAEM is another noteworthy achievement for us as we work to strengthen our position in the PV power plants market in Europe and continue to build our foundation to capture future opportunities.”

“We are proud to work with LDK Solar on the development of PV plants,” stated Francesco Maggi, CEO of SAEM group. “We believe that this partnership with LDK Solar reinforces the connection between SAEM and the world of PV manufacturing in a market that has strong potential. We look forward to working together on future projects to further capitalize on the growing opportunities in this market.”

About SAEM – Kerself S.p.A. group

SAEM, is a leading Italian company operating in the PV sector since 1998. The work of research and design of a team of 10 engineers supported by 80 highly skilled installers, has rapidly made SAEM the reference point of photovoltaic systems in Italy. The nominal power of plants, designed and already installed by SAEM throughout the national territory, today exceeds several MWs, all equipped with surveillance and monitoring apparatus. The SAEM business success led Kerself Group, listed in Milan stock exchange (KRS), to acquire 55% of SAEM property.

Toledo Tries to Overcome Rust-Belt Image, Become Green Jobs Metropolis

By: Brooke Sopelsa, Writer/Producer | 30 Jun 2009 | 02:48 PM ET | CNBC.com

The glass is half full again in Toledo. The Ohio city once known as the glass-making capital of America is trying to forge a new identity as a solar energy, green jobs metropolis of the future.

“This is a very important growth sector for us,” says Rep. Marcy Kaptur, a Democrat, whose district includes Toledo. “We’re carving out a well-deserved reputation as a leading region for alternative energy research and manufacturing.”

While job growth in Ohio is down, green job growth in the state is up, according to a new study from Pew Charitable Trusts. According to the study, Ohio’s clean energy sector grew by 7.3 percent between 1998 and 2007, while the state’s overall job base fell by 2.2 percent during the same time.

“The idle manufacturing capacity that is spread across Rust Belt states really presents enormous opportunity to locate the manufacturing of these new clean energy goods, many of which are very similar in nature to things that were being built there previously,” says Benjamin Goldstein, a policy analyst at the Center for American Progress.

Toledo, which has an unemployment rate of 12 percent, more than a point higher than the state average and nearly three points higher than the national average, is hoping to become not just Ohio’s clean energy capital, but the country’s. The city, the state, the University of Toledo and local entrepreneurs are working together to make this a reality.

“We have about 6,000 people at the moment employed in 15 research and manufacturing institutions that are focused entirely upon solar energy,” says Toledo Mayor Marty Finkbeiner. “We would like to see over a decade that number grow from 6,000 to 20,000.”

The University of Toledo is one of the driving forces behind the city’s green makeover. In 2000, the university started looking at ways to support regional development, eventually deciding the best way was to develop a clean energy program, with a focus on solar energy.

“We wanted to establish one premiere area where we could be as good as anybody in the world,” says Dr. Frank Calzonetti, vice president of research development at the University of Toledo. “We picked one area where we wanted to build a very strong core of research that would lend itself to invention and also support technology development in our area.”

The University of Toledo has a long history with solar energy. In the 1980s, a glass expert and Ohio native by the name of Harold McMaster used his knowledge to create solar cells. He started a business at the university called Solar Cells, which more than a decade later became First Solar (FSLR), now the largest manufacturer of thin-film solar cells in the world. Although the company is now headquartered in Tempe, Ariz., it has a manufacturing plant just outside Toledo that employees more than 700 people.

Trina, Yingli Seen Taking Shr From U.S., EU Solar Players

Posted by Eric Savitz
barrons.com

Both Trina Solar (TSL) and Yingli Green Energy (YGE) shares are trading higher today following upgrades by Morgan Stanley analyst Sunil Gupta. He thinks both companies are going to take market share in the solar sector from U.S.-based and European rivals. Here are the details:

* Trina: Rating to Overweight from Underweight. Target to $37 from $7.30. (Wow, that’s quite a change of heart there.) The reasons for the more bullish stance: an expected industry inflection next year, Trina’s position as a low-cost producer, “and hence its potential to gain market share at the expense of high cost EU and U.S. producers.” He sees TSL driven by “high volume growth, low-to-moderate margins and relatively good working capital management.”
* Yingli: Rating to Equal Weight from Underweight, Target to $16.30 from $3.10. (Wow, again.) Gupta writes that is new stance on the stock is based on “easier domestic credit and capital market conditions, which have eliminated financial survival risk, opening up of the domestic China market and prospects of a gain in global market share.” He thinks Yingli, like Trina, will take share from the U.S. and European players due to cost advantages. That said, he thinks the stock’s valuation is “reasonable, but not compelling.”

TSL today is up $1.42, or 5.9%, to $25.41. YGE is up 27 cents, or 2.1%, to $13.43.

Suntech Signs $50 Million Convertible Loan Agreement with IFC

Tuesday June 30, 2009, 9:24 am EDT

SAN FRANCISCO, Calif., and WUXI, China, June 30 /PRNewswire-Asia/ — Suntech Power Holdings Co., Ltd. (STP), the world’s largest manufacturer of crystalline silicon photovoltaic (PV) modules, announced today that it has signed a US$50 million convertible loan agreement with IFC, a member of the World Bank Group, to support Suntech’s transition to the high efficiency Pluto technology and debt refinancing requirements. Suntech is permitted to draw the loan upon satisfaction of various conditions precedent, which Suntech believes it will satisfy within 30 days.

The convertible loan has a fixed rate coupon of 5.0% per annum payable on June 15 and December 15 in each year. If not converted, the loan will be repayable in full 7 years after the date of drawdown. The conversion price of the loan is US$18.00 per American depositary share (ADS), which was set at a premium over the average trading price over 20 trading days immediately prior to notice that IFC’s board had approved the convertible loan.

“We are pleased that IFC, a world class investment institution that supports sustainable development, has agreed to provide Suntech with a convertible loan of $50 million,” said Dr. Zhengrong Shi, Suntech’s Chairman and CEO. “These additional funds will strengthen Suntech’s financial position and support our transition to the high efficiency Pluto technology as we progress towards our goal of providing grid parity solar solutions.”

“IFC is pleased to support Suntech, one of the leaders in the solar PV industry,” said Randall Riopelle, Manager, Global Manufacturing & Services Department. “We are pleased to be partnering with a company focused on developing best in class technology and which has demonstrated a firm commitment to the highest corporate responsibility standards. We look forward to working with Suntech as solar energy becomes an increasingly important source of renewable energy for China and for the world.”

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, please visit http://www.ifc.org.

Trina Solar’s Glass Supplier to Invest in Changzhou Trina PV Industrial Park

Tuesday June 30, 2009, 8:00 am EDT

CHANGZHOU, China, June 30 /PRNewswire-Asia-FirstCall/ — Trina Solar Limited (TSL; “Trina Solar” or the “Company”), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced that one of the Company’s key solar module glass suppliers, Beijing Hua Mei Dazheng Technology Co. Ltd (”Beijing Hua Mei”), has signed an investment agreement to establish a production facility in the Changzhou Trina Photovoltaic Industrial Park. The agreement was signed with the Changzhou National High Tech District to build a production facility adjacent to Trina Solar’s manufacturing campus. Construction of the facility is planned to start in the second half of 2009, with production expected to begin in the first half of 2010.

Beijing Hua Mei is one of the first PV glass companies to be established in China and has supplied Trina Solar since 2007. Trina Solar has entered into a long term agreement to purchase solar module glass produced by the new Changzhou production facility.

“We are excited by the ongoing developments of the Changzhou Trina PV Industrial Park and the opportunity to continue forming a strong partnership with Beijing Hua Mei,” said Jifan Gao, Trina Solar’s Chairman and CEO.

“Adding this key component supplier to the PV Park will support our goals to realize procurement and logistical advantages to accelerate our near term cost reduction initiatives. We are pleased that this important supplier has chosen to locate adjacent to the Trina Solar campus, and we believe this shows that Changzhou is fast becoming a hub for China’s solar PV industry.”

Yingli Green Energy Announces Exercise of Over-Allotment Option

Tuesday June 30, 2009, 6:00 am EDT

BAODING, China, June 30 /PRNewswire-Asia-FirstCall/ — Yingli Green Energy Holding Company Limited (YGE; “Yingli Green Energy”), one of the world’s leading vertically integrated photovoltaic (”PV”) product manufacturers, today announced that it closed the sale of an additional 2,790,000 American Depositary Shares (”ADSs”), each representing one ordinary share of Yingli Green Energy, at the public offering price of US$13.00 per share, pursuant to the over-allotment option exercised in full by the underwriters of its recent follow-on offering, which priced on June 16, 2008. The exercise of the over-allotment option brings the total number of ADSs sold by Yingli Green Energy in the follow-on offering to 18,390,000 and the aggregate net proceeds received by Yingli Green Energy to approximately US$227.4 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Fed works to speed solar development in Southwest

By KEN RITTER

LAS VEGAS (AP) — The federal government’s top land steward said Monday that the United States will fast-track efforts to build solar power generating facilities on public space in six Western states.

Interior Secretary Ken Salazar said he has signed an order setting aside more than 1,000 square miles of public land for two years of study and environmental reviews to determine where solar power stations should be built.

“We are putting a bull’s-eye on the development of solar energy on our public lands,” Salazar said during an announcement with U.S. Sen. Harry Reid of Nevada, in a courtyard shaded by a solar power array at the University of Nevada, Las Vegas.

Salazar and Reid, the Democratic Senate majority leader, invoked President Barack Obama’s call for rapid development of renewable energy.

“We hear a lot about doing something about the environment,” Reid said. “That’s what this is all about. We want to not be dependent on foreign oil. This will make America a more secure nation.”

Salazar vowed to have 13 “commercial-scale” solar projects under construction by the end of 2010. He set a goal of producing a total of 100,000 megawatts of solar electricity.

Salazar said the federal Bureau of Land Management plans to spend $22 million conducting studies of 24 tracts in the 670,000 acres of property he set aside in Nevada, Arizona, California, Colorado, Utah and New Mexico. Posters displayed Monday showed some of the sites in southern Nevada, Southern California east of San Diego, an area west of Phoenix, and tracts north of Cedar City in Utah, southwest of Pueblo, Colo., and around Las Cruces, N.M.

Bureau officials said the goal will be to identify lands of at least three square miles with solar exposure, suitable slopes and proximity to existing or designated roads and transmission lines. Wilderness, high-conservation-value lands and lands with conflicting uses were excluded. Setting aside the sites, called Solar Energy Study Areas, would prevent new mining claims and other third-party use during the studies.

An industry official hailed Salazar’s promise to clear a logjam in utility-scale solar developments. The BLM said it has 158 active applications for solar power plants pending.

SunPower, Wells Fargo Team to Finance $100 Million in Solar Projects

Monday June 29, 2009, 4:05 pm EDT

First Projects with University of California, Merced and Western Riverside County Regional Wastewater Authority

SAN FRANCISCO and SAN JOSE, Calif., June 29 /PRNewswire-FirstCall/ — Wells Fargo (WFC) and SunPower Corp. (SPWRA, SPWRB) today announced a new collaborative effort to fund up to $100 million in SunPower commercial-scale solar systems.

Under the financing program, SunPower will enter into power purchase agreements with qualified customers and Wells Fargo will finance the solar power systems that SunPower will design, build, operate, and maintain. Customers hosting the systems will buy the electricity from SunPower at prices that are competitive with retail rates, providing them with a long-term hedge against rising power prices and the ability to take advantage of the environmental and financial benefits of solar power with no initial capital investment.

“We see increasing opportunities over the next several years to support renewable energy markets,” said Barry Neal, director of Wells Fargo’s Environmental Finance. “By teaming up with SunPower, we intend to support growth in the solar energy market by making it easier and more affordable for businesses and public entities to benefit from solar electricity today.”

The first projects financed under the program include a 1.1-megawatt system for University of California, Merced, and a 1-megawatt system for the Western Riverside County Regional Wastewater Authority. Scheduled for completion by year end, both will be ground-mounted systems using the patented SunPower® T20 Tracker technology, which follows the sun throughout the day and delivers up to 30 percent more energy than fixed-tilt ground systems.

“SunPower offers high performance solar technology and financing expertise that helps customers maximize savings on their electricity expenditures. Our relationship with Wells Fargo strengthens our project finance efforts, streamlining the implementation of clean, renewable solar power for SunPower’s large commercial and public customers throughout the U.S.,” said Mac Irvin, managing director of SunPower’s structured finance group.

SunPower has more than 500 large public and commercial solar power systems installed or under contract, representing more than 400 megawatts. The company pioneered the use of solar power purchase agreements in 2000.

Wells Fargo has provided more than $1.75 billion in financing for renewable energy projects since 2006. That includes funding for 27 wind projects, more than 150 commercial-scale solar projects and 1 utility-scale solar thermal project.

About Wells Fargo

Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,400 stores, over 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally. The Company promotes economic growth and self-sufficiency, education, social services, the arts and the environment in thousands of communities across North America. In 2008, the Company gave $226 million in grants to 14,000 nonprofits. Team members contributed 1.4 million volunteer hours and served on 16,000 nonprofit boards. The merger of Wells Fargo and Wachovia makes our presence stronger in the communities we serve. For more about Wells Fargo’s achievements in Social Responsibility: www.wellsfargo.com/about/csr.

Canadian Solar Announces 120MW of Recent Sales Orders

Monday June 29, 2009, 8:05 am EDT

Canadian Solar Inc. (”the Company”, “Canadian Solar” or “we”) (CSIQ) today announced it has received a purchase order from Systaic AG (SYSCF) for 30 MW of solar modules to be delivered to Spain. This is a specific purchase order under the 60 MW annual supply agreement that the two companies announced in October of 2008. Delivery under the agreement has already started.

Including this new 30MW purchase order, the Company has recently signed or reconfirmed sales contracts, contract extensions or received purchase orders for delivery of about 120MW of solar module products to 24 customers in Europe, North America and Asia. Most of these deliveries are expected to take place from June to October.

Dr. Shawn Qu, Chairman and CEO remarked, “We have insisted on quality products and services, long-term partnerships and prudent financial management. We are pleased that our efforts have paid off. The recent ‘flight to product quality and financial strength’ by customers, coupled with very competitive pricing have resulted in strong demand for our solar modules. The relationship between Canadian Solar and Systaic is a good example. The two companies have developed a solid partnership since early 2008, and Systaic has been one of our Top 10 customers in 2008. We have supported each other in recent quarters, leveraging Canadian Solar’s compelling product portfolio and financial strengths with Systaic’s strong system integration capability and large footprint in Europe, especially in the key markets of Germany, Spain and Italy. We are looking forward to our ongoing collaboration given both companies commitment to quality workmanship, innovation and service.”

Michael Pack, CEO of Systaic said: “We decided to start executing the annual agreement as the financing environment is improving, reconfirming our intention to reach the 60 MW annual target. The combination of Systaic’s system technology and Canadian Solar’s high performance modules has delivered high energy yields in the Spanish projects our companies have executed. As a result, Systaic recently completed a transaction to sell one of our solar farms, built with Canadian Solar’s modules, to a well-known off-take fund. The transaction has successfully received a refinancing from a leading German bank, underscoring the high financial attractiveness and bankability of our projects.”

About Systaic AG (SYSCF)

Due to the consequent implementation of its strategy, Systaic AG belongs to the fastest growing companies in the sector of renewable energies in Europe. The SYSTAIC group produces and markets Europe-wide a new generation of solar systems that differs significantly from the systems currently available on the market. The product portfolio is enhanced by the offer of comprehensive services. The patent-pending integrated system solutions for buildings are highly flexible regarding their design and are offered together with a yield guarantee for over 24 years. Systaic’s subsidiary Enerparc is currently implementing the world’s largest building-integrated photovoltaic power plant.

Applied Materials Applauds House for Rapidly Moving Forward on Climate Change, Urges Fast Action to Enact Legislation

Friday June 26, 2009, 7:41 pm EDT

SANTA CLARA, Calif.–(BUSINESS WIRE)–Applied Materials, Inc. (AMAT) today expressed strong support for the U.S. House of Representatives’ passage of the American Climate and Energy Security Act (ACES).

“Like the decision to fund a space program and put a man on the moon in the 60s, this bill could be heralded as a true inflection point: the moment when the U.S. got serious about clean energy. It will certainly be one of the most important bills considered by Congress, given its far reaching impact on the economy and the environment,” said Mike Splinter, chairman and CEO of Applied Materials, the largest solar equipment manufacturer in the world. “The U.S. is stating unequivocally to the world that we want to be leaders when it comes to saving our climate.”

“Speaker Pelosi and Chairmen Henry Waxman and Ed Markey have shown tremendous leadership with their tireless work and leadership to bring this ‘Clean Deal’ legislation to fruition in the House. They have helped to set the United States on a course of transformation to a low carbon economy, which we believe will create enormous economic opportunity in clean energy, including thousands of jobs, and drive an energy innovation revolution potentially bigger than the information and computing age,” Splinter added.

“While the cap and trade component of this bill is critical, the importance of the national standard for renewable energy generation should not be overlooked. It will take years to fully regulate carbon dioxide. In the meantime, this bill provides financing mechanisms that will increase the use of renewable energy immediately, curbing climate change emissions and spurring significant investment in the green economy now. We are greatly encouraged by the House’s vote today and look forward to similar action by the Senate, with a goal to seeing legislation enacted this year.”

Applied Materials is focused on powering future economic growth through solar photovoltaic technology that is viable today. Applied is making solar more affordable and scalable through products used to manufacture wafer-based crystalline silicon solar panels, as well as the company’s revolutionary SunFab™ Thin film line, which produces the largest solar panels in the world. Applied was recently honored with the Wall Street Journal’s 2008 Technology Innovation Award for its SunFab production line. Applied Materials brings 40 years of innovation and manufacturing experience in the semiconductor and flat panel display industries to the energy and environment sector.

China Sunergy Files Annual Report on Form 20-F

Friday June 26, 2009, 11:00 am EDT

NANJING, China, June 26 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), a specialized solar cell manufacturer based in Nanjing, China, today announced that its Annual Report on Form 20-F for the year ended December 31, 2008, has been filed with the Securities and Exchange Commission, including its 2008 audited financial statements. The Annual Report on Form 20-F can be accessed via the investor relations section on the Company’s website at: http://www.chinasunergy.com .

The Company will provide a hard copy of its 20-F annual report, including audited financial statements, free of charge to its shareholders and ADS holders upon request. Requests should be directed to info@chinasunergy.com or Investor Relations, China Sunergy Co., Ltd, No. 123, West Focheng Road, Nanjing, Jiangsu Province, People’s Republic of China, 211100.

An electronic copy of the 20-F annual report can also be found in the website of the Securities and Exchange Commission.

Spire Secures Expanded $8 Million Revolving Credit Facility with Silicon Valley Bank

Thursday June 25, 2009, 2:30 pm EDT

BEDFORD, Mass.–(BUSINESS WIRE)–Spire Corporation (SPIR), a global solar company providing turnkey solar factories and capital equipment to manufacture photovoltaic (PV) modules and solar systems worldwide, today announced that it has amended its current Revolving Credit Facility. In addition to the amended $3 million facility, the Company has added an additional $5 million revolver under an Export-Import Credit Facility which is backed by a guarantee from the Export-Import Bank of the United States (the “Ex-Im Bank”). The existing Equipment Credit Facility will be retained with no additional funds available under that line. In the aggregate, the Company will have availability of up to $8 million over the next year.

Roger G. Little, Chairman and CEO of Spire Corporation, commented, “We are pleased to receive these credit facilities, which improve our liquidity to support our growth. Silicon Valley Bank has been a good financial partner. Even with the tough banking environment, we were also able to increase the loan availability with the assistance of the guarantee offered by Ex-Im Bank.”

“Spire is well positioned in the growing PV solar renewable market,” said Jay T. Tracy of Silicon Valley Bank’s Boston office. “We are glad we are able to renew our commitment to the Company and help it meet its growth objectives, particularly in such a challenging economy.”

About Silicon Valley Bank

Silicon Valley Bank is the premier commercial bank for companies in the technology, life science, venture capital and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients’ success. Founded in 1983 and headquartered in Santa Clara, California, the company serves clients around the world through 27 U.S. offices and international operations in China, India, Israel and the United Kingdom. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB – News), with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at www.svb.com.

First Solar Reaching Fair Value

Canaccord Adams downgraded the stock to Hold citing a lack of catalysts.

By Canaccord Adams ($171.19, June 25, 2009)

WHILE WE LIKE First Solar (FSLR) as a long-term leader in the solar energy space, we are downgrading the shares to Hold from Buy as near-term pressures and a lack of positive catalysts cause us to conclude that the shares are near their fair value. We maintain our $180 price target, which is based off of a 25 times multiple of our 2009 earnings-per-share estimate.

First Solar hosted a highly anticipated analyst day — its first in well over a year. The company laid out ambitious targets with respect to module efficiency and throughput, but alluded to little else in the way of some of the positive announcements we were looking for.

First Solar remains the leading solar company, in our opinion; however, the company issued fairly ambitious targets with respect to the project pipeline and technology advances, and a lack of visibility into further positive catalysts remains. Additionally, the company’s business model and financial model are changing fairly significantly.

As we suspected, the company’s new focus will lower gross margins but likely increase income in absolute terms. While the company has finally properly set expectations, we believe that the decreasing margin profile may turn some investors off until the higher income and cash flows actually materialize.

It will continue to recognize module sales as revenue on shipment, turnkey systems as a percentage of completion, and development projects as an asset sale with the gain/loss as an operating expense. The company will strive to focus on return on net assets (RONA) and economic value add (EVA), as the company (rightfully so) believes these are strong metrics for measuring the generation of shareholder value.

Further, empirical evidence has shown a strong correlation with share performance and these metrics. While it would prefer not to define its business in terms of its margin profile, it did lay out a roadmap to 35%-40% gross margins as part of its strategy to diversify downstream, but noted that income in absolute terms and RONA targets should remain.

First Solar is targeting all three possible utility entry points: through regulated/public utilities directly, through the utility affiliate independent power producers, and through unaffiliated power producers. The OptiSolar acquisition in early 2009 gave First Solar 1,400 megawatts of U.S. utility-scale projects, in various stages of negotiation. It also acquired 136,000 acres of strategic land rights and 8,600 megawatts of interconnection positions. The company believes that these items, as well as its existing projects, make up the country’s largest utility-scale pipeline.

While First Solar is certainly well positioned in the U.S., we believe the above figures should be discounted given the early stages of some of the negotiations and uncertainties in legislation, permitting, etc. First Solar estimates it currently takes almost 18 months to four years to site a large project from inception to the beginning of physical construction in the U.S.

For comparison, its installer customers in Germany can site a large project from inception in under a year. Part of the [difference] is related to different permitting and other procedural differences, but First Solar has indicated that there are areas that it can improve upon, and is focusing on these areas as it grows into its EPC [engineering, procurement and construction] business. The company has gained valuable experience with the El Dorado plant, and is fine-tuning the system design, construction methods, materials, etc. The company is confident that it can climb the learning curve on project development but stressed that it will likely take some time to do so.

For the first time essentially since the IPO [initial public offering], the company has updated its technology roadmap. First Solar has outpaced the efficiency gains of crystalline silicon, having increased from an average of approximately 5% in 2001 to the 10.9% currently, compared to silicon which has only improved by around 200 basis points in the same time frame. The company claims strong visibility to 12.5% cells in the near- to midterm (2012), and it believes that 16%-18% is a practical production potential toward 2014.

Almost all areas can still be improved upon including: optical engineering, contact engineering, grain-boundary engineering, band engineering and dopant engineering. The company maintains its projection of $1.00 per watt for the balance of systems by 2012 and has extended its forecast to 91 cents-98 cents per watt by 2014. Similarly, it is maintaining its module-manufacturing-cost projection will reach 65 cents-70 cents by 2012 and extended it to 52 cents-63 cents per watt by 2014. This cost decrease is driven largely by the efficiency improvements mentioned above as well increased throughput. First Solar projects that its average nameplate capacity will rise to 80 megawatts from a current 49 megawatts by 2014.

– Jonathan Dorsheimer
– Josh Baribeau

First Solar: More Trouble As Phoenix Solar Issues Warning

Posted by Eric Savitz
barrons.com

There’s fresh evidence of continued weakness in the solar sector.

Phoenix Solar, a German solar module company that ranks among the largest customers for First Solar (FSLR), today advised investors not to rely on its previous 2009 guidance for EBIT, earnings before interest and taxes, of 31 million Euros.

“The reason for this assessment is the continuing decline in prices, particularly for solar modules, resulting in downward pressure on margins, buying resistance on the part of customers, and an increased devaluation requirement for current inventories,” Phoenix Solar said in a statement. “Until now, based on various signals, the Board of Directors had expected that price declines had reached their lowest point and that earning situation would recover. These expectations were not confirmed.”

The company said it still expects positive EBIT for the year, but that it will only issue detailed guidance when prices have stabilized. The company is keeping its revenue guidance of 520 million Euros.

Hapoalim Securities analyst Gordon Johnson asserts in a research note that Phoenix is actually First Solar’s single largest customer. “We strongly recommend our readers Sell,” he writes.

In German trading, Phoenix Solar shares fell 5.75 Euros, or 14.3%, to 34.45.

FSLR is down$11.57, or 6.8%, to $159.62.

Commerce Secretary: Energy entrepreneurs will lift U.S.

6/25/2009 1:23:50 PM

DETROIT: High energy prices in Europe are causing 80% of the solar panels built in Michigan by United Solar Ovonics to be shipped overseas.

But company officials were buoyed today after a visit from U.S. Commerce Secretary Gary Locke, who said that the Obama administration’s commitment to renewable energy will help transform the state.

“Hopeful is how I feel about the future of Michigan and America. I know Washington, D.C., can only do so much. So it will take the spirit of American entrepreneurs to dig us out,” Locke said during a town hall meeting at one of United Solar Ovonics plants in Auburn Hills.

“American workers are designing and building components that are changing the way people are using energy. And that’s the way to go until economy is humming again,” Locke said. “But I know we’re going to get there because of companies like United Solar Ovonics.”

He listed a number of renewable energy proposals that will help companies like Uni-Solar, including a 30% tax credit for people and businesses who install solar roofs on their home or business; an $11-billion investment on the electrical grid, a $120-million research and development investment for solar; and $6 billion in investments toward renewable power generation.

In addition, Locke told about 100 people at the plant that the Commerce Department will open a one stop shop this year in Detroit to help businesses connect with customers across the world.

“We will have Commerce department employees who will line up potential customers for you at embassies or consulates across the world,” Locke said. “They have a proven record for success.”

Mark Morelli, CEO of Uni-Solar’s parent company Energy Conversion Devices (ENER), said the company is very excited about the potential in the U.S. market.

“This is a new industry that is growing. We have 2,000 employees and we’re very proud of having a Michigan based workforce,” Morelli said. “We’re really excited that we’ll have a real opportunity to sell our product in the United States.”

Uni-Solar opened its first manufacturing plant in Auburn Hills in 2003 and has since doubled its capacity there and opened two more plants in Greenville. The company also broke ground in November on a fifth plant in Battle Creek.

Sales of solar products for United Solar Ovonics’ parent company — Energy Conversion Devices — for the first nine months of this fiscal year grew to $246 million compared to $154 million for the same period in the 2007-08 fiscal year.

But one employee noted that sales in the United States have been lagging.

“With the president’s proposal on tax credits … The future is very, very bright for alternative energy and solar energy,” Locke said.

PG&E Teams With NRG Energy and eSolar for 92 Megawatts of Solar Thermal Power

Thursday June 25, 2009, 1:00 pm EDT

Project Features Unique Modular Technology to Speed Delivery of Clean Energy to Utility Customers

SAN FRANCISCO, June 25 /PRNewswire-FirstCall/ — Pacific Gas and Electric Company (PG&E) announced today that it has entered into an agreement with Alpine SunTower, LLC, a subsidiary of NRG Energy Inc. (NRG), for 92 megawatts (MW) of renewable, solar thermal power.

The Alpine SunTower project features eSolar’s modular, scalable solar thermal technology and is scheduled for completion in 2012. The project will be located near Lancaster, Calif. and will produce approximately 192 gigawatt-hours of electricity each year. This is equal to the annual consumption of nearly 30,000 average homes.

“PG&E is collaborating with NRG and eSolar to serve our customers’ future energy needs and respond to their demand for renewable resources,” said Fong Wan, senior vice president of energy procurement for PG&E. “The combination of NRG’s proven development skills and eSolar’s innovative technology can provide our customers with clean, affordable energy.”

The project announced today is part of eSolar and NRG’s recently announced plans to develop up to 500 MW of solar thermal power in California and across the Southwestern United States.

“NRG is very pleased to be working hand-in-hand with PG&E, a utility at the forefront of bringing green solutions to the electricity sector, to deploy at scale eSolar’s exciting new solar technology,” said David Crane, NRG’s president and chief executive officer. “As we enter the hot summer months, we are reminded that solar power has a key role to play in helping meet peak demands in California.”

Solar thermal power generates electricity by converting solar energy to heat, which boils water to create steam that turns a turbine. The spinning turbine then generates electricity like a traditional steam plant but without burning fuel or causing emissions, such as greenhouse gases. eSolar’s concentrating solar power projects feature a proprietary combination of optics and software in a pre-fabricated form factor for cost-effective scalability. Its scalable plants will be built in 46 MW unit solutions, each of which requires one quarter square mile of land.

“With the only operating solar power tower technology in the U.S., this new agreement with world-class utility PG&E points to the success of NRG and eSolar to develop solar thermal generation,” said Bill Gross, CEO of eSolar. “eSolar’s power towers can be designed in variable configurations and are easily scalable to meet the growing and evolving needs of forward-looking power providers like PG&E.”

Since 2002, PG&E has entered into contracts for more than 20 percent of its future electric power deliveries from renewable sources. On average, half of the electricity PG&E delivers to its customers comes from carbon-free generating sources, making the company’s energy some of the cleanest consumed by any electric utility customers in the nation.

About Pacific Gas and Electric Company

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (PCG), is one of the largest combined natural gas and electric utilities in the United States. Based in San Francisco, with 20,000 employees, the company delivers some of the nation’s cleanest energy to 15 million people in northern and central California. For more information, visit www.pge.com/about/.

About eSolar

eSolar is an Idealab company founded in 2007 to develop, construct and deploy modular, scalable solar thermal power plants. eSolar’s approach marries a low-impact, pre-fabricated form factor with advanced optics and computer software engineering to meet the demands of utilities of any size for clean, renewable and cost-competitive solar energy. By focusing on the key business obstacles that have characterized large solar installations – price, scalability, speed of deployment and grid impact – eSolar has developed a proprietary solution to make a dramatic reduction in the cost of solar thermal technology. eSolar is based in Pasadena, California. For more information please visit http://www.esolar.com/.

About NRG

NRG Energy, Inc., a Fortune 500 company, owns and operates one of the country’s largest and most diverse power generation portfolios. Headquartered in Princeton, NJ, the Company’s power plants provide more than 24,000 megawatts of generation capacity, enough to supply more than 20 million homes. NRG’s retail business, Reliant Energy, serves more than 1.7 million residential, business, commercial and industrial customers in Texas. A past recipient of the energy industry’s highest honors–Platts Industry Leadership and Energy Company of the Year awards, NRG is a member of the U.S. Climate Action Partnership (USCAP), a group of business and environmental organizations calling for mandatory legislation to reduce greenhouse gas emissions. More information is available at www.nrgenergy.com.

First Solar shares fall following analyst day

Shares of First Solar decline as analysts mixed following meeting with company in Las Vegas

Thursday June 25, 2009, 12:41 pm EDT

NEW YORK (AP) — Shares of First Solar (FSLR) fell on Thursday, a day after the company hosted its first analyst day in more than a year.

At the Las Vegas meeting, the company predicted costs to decrease to between 52 cents and 63 cents per watt by 2014, compared with earlier estimates of between 65 cents and 70 cents per watt by 2012. First Solar said its capital spending per watt, which is now at 80 cents per watt, is expected to fall to a target of 50 cents per watt by 2014.

Analysts had mixed reactions to the company’s outlook.

Pacific Crest analyst Mark Bachman said the company’s update was “solid, but that was expected,” citing First Solar’s assurance of controlled manufacturing costs, manageable pricing and “outperforming” financial model. “The stock remains attractive,” Bachman said, rating it “Outperform,” with a $231 price target.

Canaccord Adams analyst Jonathan Dorsheimer said the impact of the solar company’s meeting was “modestly negative,” but that didn’t bump it from its seat as “the leading solar company” in his view. Dorsheimer downgraded the company to “Hold” from “Buy,” citing a lack of positive catalysts and a change in the company’s focus that will lower gross margins but increase income in absolute terms.

“We believe that the decreasing margin profile may turn some investors off until the higher income and cash flows actually materialize,” Dorsheimer said. His price target remains at $180.

Deutsche Bank analyst Steve O’Rourke maintained a “Hold” rating, raising his price target to $170 from $167.

“We believe First Solar is uniquely positioned as one of a select few companies that can effectively drive solar photovoltaic beyond heavily subsidized markets in the coming few years,” said O’Rourke. “We expect this to solidify the company’s market leadership position and substantially grow market share.”

The nation’s largest solar panel maker saw its stock tumble $6.05, or 3.6 percent, to $164.86 in Thursday morning trading.

ReneSola Receives High Technology Status and Qualification for Reduced Income Tax Rate

Thursday June 25, 2009, 10:54 am EDT

JIASHAN, China, June 25 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (”ReneSola” or the “Company”) (SOL), a leading global manufacturer of solar wafers, today announced that its operating subsidiary, Zhejiang Yuhui Solar Energy Source Co., Ltd., (”Zhejiang Yuhui”), has qualified as a high technology enterprise in China. The classification allows the Company to enjoy a reduced income tax rate of 15% for three years, starting on January 1, 2009. The 15% tax rate applicable to Zhejiang Yuhui replaces the 25% statutory tax rate that the Company will be subject to once the current tax concession expires.

Classification as a high technology enterprise is awarded to companies which meet specific requirements as determined by the central government, including the number of patents and proprietary technologies the enterprise has in addition to the size and expenditure of its R&D facilities.

“We are delighted to be recognized as a high technology enterprise and become one of the select solar companies in China to receive such a qualification,” commented Mr. Xianshou Li, ReneSola’s chief executive officer. “From China’s central to provincial governments, we are seeing an increased focus and commitment on creating incentives for the development of clean, renewable energy such as solar power. As one of China’s leading low-cost, fully-integrated solar companies, we are confident that we are well positioned to play a leading role in helping China achieve its goal of a greener future.”

First Solar: Canaccord Downgrades Post-Analyst Meeting

Posted by Eric Savitz
barrons.com

First Solar (FSLR) shares are losing ground this morning on investor disappointment over the company’s meeting with analysts yesterday.

Canaccord Adams analyst Jonathan Dorsheimer this morning cut his rating on the stock to Hold from Buy, while keeping his $180 price target. The stock closed yesterday at $171.19.

“The company laid out ambitious targets with respect to module efficiency and throughput, but alluded to little else in the way of some of the positive announcements we were looking for,” he writes in a research note.

“First Solar remains the leading solar company, in our opinion; however, the company issued fairly ambitious targets with respect to the project pipeline and technology advances, and a lack of visibility into further positive catalysts remains,” Dorsheimer writes. He notes that First Solar’s business model and financial model are changing fairly significantly, with the company focused on lower gross margins likely higher absolute income. “While the company has finally properly set expectations, we believe that the decreasing margin profile may turn some investors off until the higher income and cash flows actually materialize.”

FSLR today is down $7.98, or 4.7%, to $163.21.