Suntech Power (STP) CEO: “Solar Now Competitive Energy Source”

In an article over at CNBC Suntech Solar (STP) CEO Zhengrong Shi said he is upbeat on the solar sector highlighting the fact it is now becoming competitive with traditional energy sources, dropping from $6/watt 10 years ago to nearly $1/watt now.

While upbeat in the longer term, he did acknowledge the difficulty short term as over supply continues to be an issue.

“Right now, there is an oversupply situation, manufacturing capacity is expanding faster than growth in the market. The industry is going through consolidation,” he said.

Commenting on demand, he sees sizable growth in the US, China, India and South American markets and mentioned that in India solar power is already cheaper than diesel.

I’ve been saying it for several weeks now and still believe it.  The likelihood of a solar bottom has increased significantly in recent weeks with many solar stocks pushing above resistance of the 50 day moving average.  Currently, they are resting and pulling back to what is now support of those 50 day moving averages creating nice entry points for those that missed the initial run.  I do think you can be patient and scale in slowly.  The overall market is extended and due for a pull back which would likely put decent pressure on solar stocks in the coming weeks.

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