Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of solar cost-leader First Solar
So what: The feed-in tariff system Germany implemented last year, with semiannual cuts based on installation levels, already appears to be out the window in favor of monthly cuts. German Environment Minister Norbert Roettgen said the country would transition to the monthly cuts, but for now details beyond that are sparse.
Now what: The idea of a cap on solar installations has been floated after the explosion of installations to end 2011, but the government is apparently leaning toward monthly cuts. I don't necessarily think this is a bad idea, but the constant changing of the rules in Germany is starting to make investors sick. Right now monthly cuts have the market spooked, but I wouldn't panic. China may be a larger market than Germany this year, and no matter how you slice it, Germany still wants to install more than 3.5 GW of solar annually, a healthy clip for the country.
Check back tomorrow for a more in-depth analysis of the potential changes.
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