Solar Stocks Lose Luster

The solar stock markets are decreasing, particularly in the US, with numerous factors contributing to the recent decline.

Government incentives have curbed interest for investors as the solar demand per capita in the US is seen as having an insignificant increase compared to international demand in countries like Germany. The European country installed almost 3,000 MW in 2009 compared to the US’ 475 MW, according to Rothman Research. However, Germany is expected to see a downturn as it will cut its feed-in tariff this year.

Shyam Mehta, senior analyst at GTM Research, the leading economic research and advisory arm for Greentech Media, said that despite the cuts, 2011 will see a modest 11% increase in solar installations; however, new markets will rise to the surface, helping to fill the shoes left by the world’s largest solar market. It is expected that the global solar industry will see a surprising surge in demand in 2010, driving up prices in the first part of the year before quickly cooling off until 2012.

Solar technology is still costly and in order to drive the price tag down, research and development will play a pivotal role in helping boost solar to the levels that it once held in 2008.

Subscribe to Alternative Energy Africa today for more in depth news in the alternative/renewable energy sector and be sure to grab your risk-free trial to see what we’re doing in 2010.