Solar energy has been touted as a viable energy source for the future. The need and demand for clean renewable energy has been increasing in recent years. But a New York Times story reports how increasing demand does not mean rising stock prices for solar energy companies.
This is partly the result of industrial policies of foreign nations like China that subsidize solar energy. In short, these subsidies have pushed the price of solar energy panels down worldwide. So the tumble in these prices can squeeze profit margins and push down share prices of solar companies like Solar City (NASDAQ: SCTY), SunPower (NASDAQ: SPWR) and SunEdison (NYSE: SUNE)