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First Solar turns lower as relief rally over tariffs fades

Published 01/23/2018, 02:30 PM
© Reuters.  First Solar turns lower as relief rally over tariffs fades
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  • The Solar Energy Industries Association, the main U.S. solar trade group that led the lobbying fight against tariffs, says the Trump administration showed "some restraint" in its decision to slap tariffs as high as 30% on imports of solar cells and modules (I, II, III), but solar shares are mixed as an early relief rally fades.
  • The tariff is not as harsh as many had expected and "removes significant uncertainty" for the solar industry, and prices already have adjusted in anticipation of the decision so the final action will cause "little incremental impact" on prices, says Chardan analyst James McIlree.
  • "Given that some of the proposals had featured tariffs as high as 35%... we see this announcement as a positive for module importers given the quick scale to 15% over four years," Cowen analysts say.
  • A 30% tariff on modules could raise the cost of residential rooftop solar systems by ~4%, the cost of distributed commercial solar projects by 6% and the cost of utility-scale solar projects by 10%, ClearView Energy Partners calculates.
  • First Solar (FSLR -0.4%), which opened higher as the kind of thin film panels it makes may be exempt from the tariffs, is now in the red.
  • CAFD +0.2%, CSIQ -1.4%, ENPH +5.6%, JASO -0.1%, JKS -6.8%, RGSE +28.7%, RUN +6%, SEDG +2.8%, SOL +0.3%, SPWR -7.4%, SUNW +8.8%, VSLR +7.1%, YGE -2.7%.
  • ETFs: TAN, KWT
  • Now read: Enphase Energy Inc .: Upcoming Section 201 Decision Critical To Stock Performance


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