The Claymore MAC Global Solar Energy Index ETF, TAN, had fallen 78% over the past years, but they’re back. Most listed solar companies had fallen from 50% to 87% over that period, but a bright spark, however, was the passed economic stimulus bill which started boosting demand once again. With the extension of the Federal 30% tax credit and the removal of the $2000 cap, homeowners will see the price of solar PV get much more affordable.
And, for commercial developers of solar facilities, the new bill has provisions that would allow them to take the 30% tax credit as a grant instead. Some of the companies best positioned to ride out the challenges of this year are the big market-leading companies with adequate cash in hand. US manufacturer First Solar is one of these companies.