MSN Money reports that on Thursday, Robert W. Stone, an analyst from Cowen and Co, released a report providing an upbeat analysis for solar energy stocks. Assuming a investment tax credit in the US for solar power, as well increased participation from utilities and the states, demand for solar should climb from 6 gigawatts in 2008 to 14 gigawatts in 2010. He also expects use of solar power to grow in Italy and France, and new markets to open up in the Middle East. In his report, Stone states:

"Lower prices and improved supply should drive German expansion and renewed Japanese growth. Italy appears close to grid parity, while Middle Eastern countries could deploy PV to preserve valuable hydrocarbons for export."

He also gave several solar stocks an outperform rating, including SunPower Corp (SPWR), Evergreen Solar Inc. (ESLR), First Solar Inc (FSLR), SunTech Power Holdings Co (STP), Trina Solar (TSL), Hoku Scientific Inc. (HOKU), China Sunergy Co. (CSUN) and Energy Conversion Devices (ENER).