Earth Equity News

Spain Proposes Sharp Cut in Solar Subsidies, Scorching Exposed U.S. Firms. Posted by Eric Savitz, SeekingAlpha.com, July 17, 2008. "Spanish officials have presented a proposal for a sharp cut in the country's solar subsidy program. The country has been debating changes for the last few weeks, and it appears that it may choose to cap its current subsidy program at 300 megawatts, a level which Collins Stewart analyst Daniel Ries this morning describes in a research note as 'the worst case scenario.' Ries said Spanish solar trade groups were lobbying for a cap at 480 MW. The new proposal would also cut the country's feed-in tariff to solar systems operators by 35% to 29 Euro cents/kWh for ground-based solar installations... Ries writes that the latest proposal... now goes to the country's National Energy Commission, which sets electricity rates in Spain... If they approve it, the measure would go to the country's Standing Committee of Economic Affairs, and then ultimately would be signed into law. Ries notes that the changes would go into effect on October 1, and so would not impact Q3 results. Solar stocks [in this country], in particular those with heavy exposure to Spain, [took] a drubbing, [including] Canadian Solar, JA Solar, Yingli Green Energy, Suntech, SunPower, Solarfun and First Solar."