Solar stocks up as companies cut deals

Several solar stocks rose Wednesday as companies continue to cut deals during an industry conference in Philadelphia.

Shares of Suntech Power Holdings Co. Ltd. climbed again on Wednesday after China's largest solar company announced a new 500-megawatt project. Suntech added $1.41, or 7.8 percent, to $19.41 on Wednesday afternoon.

China-based solar-cell maker Yingli Green Energy Holding Co. Ltd. on Tuesday announced it has signed an agreement to supply closely held Recurrent Energy Inc. with crystalline photovoltaic-solar modules through 2012. Yingli shares rose 9 cents to $15.96.

The Solar Energy Industries Association is hosting its PV America conference in Philadelphia this week.

Evergreen Solar Inc. hadn't issued any new news releases on Wednesday, but its stock gained 37 cents, or 19 percent, to $2.31.

Deutsche Bank Securities Inc. rates the company as a "Hold," but said that Evergreen and other solar companies should soon benefit from a new feed-in tariff rate adopted this year by Greece _ traditionally a small player in solar.

Greek officials just detailed the rate for roof-mounted solar photovoltaic systems at 0.55 euro per kilowatt-hour, which analyst Steve O'Rourke said is a generous rate that's locked in for 25 years.

The country installed 11 megawatts in 2008 under its previous incentive plan. O'Rourke said that could climb to between 35 and 40 megawatts in 2009 with a market potential of more than 100 megawatts in 2010.

Although that's still a small contribution to global demand, the aggregate of smaller emerging markets could make a significant contribution in the coming years, he said.

"We expect markets like Greece and eastern Europe to contribute more meaningfully beginning in 2010," O'Rourke wrote in a client note.

Raymond James analyst Darren Horowitz downgraded JA Solar Holdings Ltd. to "Market Perform" from "Outperform," saying he's "taking a breather after a 50 percent run-up in two weeks."

Horowitz said it appears that shares, which gained 9 cents to $6.07 on Wednesday, are now near fair value.

Other rising solar stocks Wednesday included China Sunergy Co. Ltd., up 39 cents, or 7.3 percent, to $5.73; and SunPower Corp., up $1.03, or 3.8 percent, to $28.39.