Solar has its Day

Solar stocks soared last week with China mentioning the S word. This word would be Subsidy and the news was taken with open arms as the many solar stocks closed up 40%+ as well as eight times the normal volume.  It is still a tentative plan and has no definite plans for a green movement in China though it is a great platform to build off of. Below is Motley Fools explanation if China’s plan.  A statement today from the Ministry of Finance announced that China is going to subsidize solar projects in excess of 50 kilowatts (kW) of rated capacity to the tune of nearly $3 per watt. According to Jesse Pichel of Piper Jaffray, that’s enough to cover at least 60% of the cost of installation, leaving only inverters and balance-of-systems costs to contend with.  The Chinese Academy of Sciences (CAS) has launched an initiative to boost the development of solar energy technology, in a bid to turn it into a major energy source in China by 2050.  A CAS official said that the academy had organized academicians and experts to make an action plan and will set up a platform to support scientific innovations involving solar energy.  The plan will be carried out in three phases, including “distributed utilization” by 2015, “alternative utilization” by 2025 and “large-scale utilization” by 2035, respectively.  This action plan aims to form value chain on technological innovation including basic studies, application studies and market research.  CAS experts said that China has a big potential for solar energy development. The duration of sunshine for two-thirds of its territory is more than 2,200 hours a year. It also has vast desert areas, where solar energy could be “harvested”. The best part of this plan is the how it shows commitment by the Chinese government to shift from the coal-burning plants that are polluting our environment to the Green Movement which the rest of the world is buying into. If this was any other country I would doubt the effectiveness, however one thing about the Chinese is when they want something done they get it done. There is no ifs, whens, or buts. So how will this shape up the markets? This makes the Solar Market a current buy and a bullish market. Currently the Solar Market has been a shaky one with its ups and downs in its short tenure. As for what Solar Stocks to buy the list is infinite all which will take a share of this momentum based rally. Long-term or Short-term I see Solar rising. So who will take the hit? Hearing this news I saw Short Coal as if China moves of it who in the world will be left dependent on it, no one, and when there is no demand, down go prices. The Solar revolution has finally come with China joining the ride so be ready.