Solar energy: how hot is it?

It looks official: the solar-energy manufacturing race is on. This recent New York Times headline says it all: China Racing Ahead of the U.S. in the Drive to Go Solar. It describes how the Chinese government is apparently aggressively driving towards first-mover advantage by making and selling solar panels to the U.S. market for less than cost.

If this strategy proves right, Chinese solar stocks like Suntech Power Holdings (STP) and Yingli Green Energy Holding (YGE) might have the jump on non-Chinese solars like First Solar (FSLR), Evergreen Solar (ESLR), Energy Conversion Devices (ENR), Canadian Solar (CSIQ) and SunPower (SPWRA), just to name a few.

How should investors react? Seeking Alpha’s David Fessler thinks FSLR’s sell-off is overdone, while SA’s Eric Savitz echoes Macquarie Research analyst Kelly Dougherty in predicting a painful solar-energy price war recently – painful for manufacturers, that is, but considerably less so for end consumers.

If you’re dabbling in solar-energy stocks, what’s your strategy right now – and why?  I also wonder if anyone in our Trader Network is actually using solar power at home or work yet?

[image: Sun by Jalalspages on Flickr]
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