Have Chinese Solar Stocks Taken a Death Blow?

The cost of Chinese solar panels has been so cheap that Europe had been threatening a trade war over what it considered dumping. It appears, though, that cooler heads have prevailed, and the EU and China have agreed to a minimum price level for Chinese solar panels imported into Europe. The new restrictions will set a $0.75-per-watt minimum on the first 7 gigawatts of panels sold.

This is potentially a big deal for Chinese solar companies, as Europe is far and away the world's largest solar market. Trina Solar and Yingli Green Energy get 30% and 40% of their revenue from Europe, respectively. So these price penalties could eat into a very large chunk of these companies' revenue. Add that to the rapidly declining costs for the entire industry, and the financial straits for Chinese companies already, and the market for these companies doesn't appear too attractive. Tune in to the following video, where Fool.com contributor Tyler Crowe takes a look at what it could mean for solar investments both in China and the United States.

The world has an insatiable thirst for energy, and the we're getting that energy changes almost every day. Getting your finger on the pulse of this movement could send your portfolio soaring. For this reason, The Motley Fool wants to give you a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out our special report, "3 Stocks for the American Energy Bonanza." Simply click here to access a free copy of this report. 


The article Have Chinese Solar Stocks Taken a Death Blow? originally appeared on Fool.com.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum