Solar Business – Ups and Downs

While green technology has taken off around the world, in several areas the concentration of an environmentally friendly ideal has truly sprouted wings. While the enlightened masses try their best to do their part to stave off global warming and reduce their carbon footprint, for some it is simply not enough. There is now a Mecca of the eco-friendly variety; a place where solar is becoming one of the most popular forms of power production, that country is Germany.

For some it may seem odd that the two countries that lost the Second World War would be two of the most forward thinking nations today in terms of Green Business innovations. Both Japan and Germany have developed programs that will lessen their emissions, and create a space where new ideas can flourish. Despite misgivings, these two nations are ahead of the renewable game, with Germany leading the way in solar power.

Through a series of rebate programs and guaranteed rates for those who invest in solar power, the solar industry has boomed in these countries. At least, it was booming.  Be warned sometimes subsidizing an industry can have negative consequences, especially when the law changes.

First Solar is a provider of renewable energy solutions in the form of solar modules for both residential and commercial uses, and they have been able to do an excellent business in Germany in both regards. However, First Solar (FSLR) wasn’t able to accrue their projected revenue, due to not getting a solar project in Canada until early October. As a result, the price of the stock has been in flux on the NYSE, taking a hit of several dollars five days. The global markets will continue to play a large part in solar development well into the future, as many large companies that are main players in the solar industry are publicly traded entities.

While First Solar has taken a small hit due to unexpected factors, they set the stage for several different Chinese solar companies in an unfriendly market. China certainly needs the ability to utilize solar power, but the question remains: will the economic downturn allow the Chinese solar industry to get off the ground?