Cowen’s Stone Comments on Speculation About Cuts in German FIT and Caps on Installations
Oct 16, 2009
Author: SCP Editor
October 16, 2009 – Analyst Comments – Cowen’s Rob Stone commented on reports that Germany will be slashing its Feed in Tariff and capping installations. He said he doesn’t expect implementation any sooner than mid-2010 and already falling prices should allow the industry to adapt.
Key Takeaways
· Solar firms Stone is covering with the least amount of exposure to Germany are SunPower (Nasdaq:SPWRA) and Trina Solar (NYSE:TSL)
· Thinks German FDP spokeswoman statements about an ‘enormous’ cut in FIT is premature and posturing. Any cut would still have to go through legislation in both houses of the German parliament and will result in a lower compromise.
· Big cuts in German and a cap would risk repeating the Spanish solar market collapse and ‘drastic job losses’