Solar industry experts and major companies in the Chinese solar power industry recently converged in Shanghai for the 2015 SNEC PV Power Expo. There were several recurring themes at the expo, and the Chinese government will likely play a major role in the industry throughout the rest of 2015.
FIT payments not a problem
According to the companies at the expo, one of the major issues facing the Chinese solar industry recently has been feed-in tariff (FIT) payments from the Chinese government. Most companies reported that they have not been receiving full, prompt FIT payments.
The Chinese government intends to have all backlogged FIT payments made by the end of 2015, and it has also indicated that new 2015 grid-connected projects will also be receiving payments by the end of the year. While this type of positive rhetoric is good for the industry, at the end of the day, the government will need to follow up on its words with actions before any material impact is made.
The Chinese government has previously set a 2015 goal of 17.8GW for China.
Prices on the rise?
Companies in the Chinese solar market have indicated that they are “cautiously optimistic” that the combination of growing Chinese, Japanese, and U.S. demand will lead to rising average sales prices (ASPs) for downstream solar companies. So far, these price increases have not yet materialized, but price stability would be a good first step in the right direction..
Stock picks
Investors looking to play the Chinese solar revolution should consider Canadian Solar Inc (NASDAQ: CSIQ), JinkoSolar Holding Co (NYSE: JKS) and Trina Solar Limited (NYSE: TSL).
Other solar names in play in China include Daqo New Energy Corp (NYSE: DQ), JA Solar Holdings Co (NASDAQ: JASO), ReneSola Ltd (NYSE: SOL) and Yingli Green Energy Holding Co (NYSE: YGE).
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