An index of Chinese solar manufacturers led by LDK Solar Co. and Suntech Power Holdings Co. rose the most in eight weeks as China announced a tax rebate for power produced from sunlight and more panel makers begin developing their own projects.
Solar manufacturers drove a rally in Chinese stocks traded in New York, led by Suntech Power Holdings Co., amid growing optimism that global demand for renewable energy will improve producers’ profitability.
Chinese equities dropped the most in a week in New York as Trina Solar Ltd. led manufacturers lower amid falling product prices. Giant Interactive Group Inc. slid after its revenue forecast missed analysts’ estimates.
Gordon Johnson, the Axiom Capital Management Inc. analyst who predicted “Armageddon” for the solar industry 14 months ago, said the crash that wiped $27 billion off the value of the shares last year may be over.
Trina Solar Ltd., China’s third- largest maker of solar panels, is shifting its focus to profitable orders and away from deals aimed primarily at gaining market share, in an effort to curtail “irrational” pricing.
On grassy pasture in western Spain, Fotowatio SL is preparing to build a solar plant to supply electricity 25 percent cheaper than a local utility charges for traditional power, a breakthrough that’s sending tremors through the global energy industry.