Since they are not profitable, they must be subsidized, transferring wealth from the productive to the non-productive.
Why The Lights Went Out On Solar Stocks Today
China threw solar investors for a loop today and the impact on solar manufacturers could last for years.
Travis Hoium (TMFFlushDraw)
Jun 4, 2018 at 3:15PM
Solar stocks took a beating Monday after China cut its national incentives to install solar projects. Shares of solar panel manufacturers Canadian Solar Inc. (NASDAQ:CSIQ) fell as much as 14.5%, JinkoSolar Holding Co.(NYSE:JKS) dropped as much as 17%, and Daqo New Energy Corp(NYSE:DQ) fell as much as 31.3% while inverter manufacturer Enphase Energy Inc (NASDAQ:ENPH) fell up to 13.5%. By early afternoon, most major stocks in the solar industry were down double digits.
There’s also uncertainty as to when China’s solar market may recover. If local governments implement stringent rules on how solar installations are compensated, it could dampen demand for years. There’s simply no positive way to spin today’s news and that’s why solar stocks are falling across the board.