Pacific Crest’s Bachman Sees Stabilization in the Solar Markets and Impact of U.S. Tariff

Oct 09, 2009
Author: SCP Editor

October 9, 2009 – Pacific Crest’s Mark Bachman said this morning that solar prices are stabilizing. He said prices from Chinese vendors for cSi-based modules are between $2.20/watt and $2.50/watt while most U.S. and European firms are between $2.40 and $2.75.

Key Takeaways

·         Doesn’t think SunPower (Nasdaq:SPWRA) will be able to maintain market share

·         Continues to see Suntech (NYSE:STP) and Sharp (7053.T) has leaders in the U.S. residential and government sectors

·         Sees First Solar (Nasdaq:FSLR), SunPower and Suntech as leaders in utility-scale projects

·         Also encourage d by recent checks at Evergreen Solar (Nasdaq:ESLR)

·         The U.S. tariff on imported solar panels will have long-term implications and a potential effect on prices going forward. As the U.S. market expands, the tariff will become increasingly significant (a 2GW market would generate a duty of about $75 million) and companies subject to the tax will have to either raise prices by 2.5% or take a hit to gross margin