Market for solar stocks is fearing likely cuts in subsidies in the hot Spanish market, as well as delays in renewing the U.S. tax credits, has weighed down stocks across the sector.  Worries about European subsidies and a disappointing forecast for the current quarter knocked SunPower shares lower.

Chief Executive Officer Tom Werner told a conference call that, if the Spanish government pushes through planned cuts, SunPower’s reach across the utility and residential markets would keep it on track through next year.

We have confidence that our model for 2009 can sustain market disruption in Spanish power plant market, as well as a delay in the extension of the United States investment tax credit,” Werner told a conference call.

SunPower shares fell $4.83, or 6 percent, to close at $75.32.