Feb 23 2010
Zacks.com, a property investment research company, announced the release of its latest industry outlook report. The report discusses in detail about the initiatives taken and incentives offered by Chinese, US and Germany governments in sustaining green energy.
The report provides latest analysis of the Alternative Energy Industry including companies such as JA Solar Holdings Co Ltd, Trina Solar Ltd, Rentech Inc, First Solar Inc and SunPower Corporation.
According to the report, the Government of China is taking increased initiatives by providing financial support in implementing solar related projects. The Chinese government has envisaged plans to increase the solar power capacity from140MW in 2008 to 2GW before the year end of 2011. To achieve this objective, the government is providing 50% subsidy on the amount invested in solar power projects. To encourage the initiative in rural areas, the Chinese government has increased the subsidy amount to 70% of the total plan costs. Currently, JA Solar Holdings Co Ltd. and Trina Solar Ltd are involved in the projects and are beneficiaries of these subsidies.
The report delves about the American Reinvestment and Recovery Act (ARRA) passed in February 2009. According to the act, the U.S. Treasury department has started issuing cash grants instead of investment tax credit for the investments made on green energy products. Additionally, the Department of Energy (DOE) in the USA has executed a loan guarantee program to assist those who are engaged in solar power products. Rentech Inc a company engaged in the manufacturing of green products would remain benefited by this initiative.
The report also explains in detail how a role back in lucrative subsidy for solar energy in Germany would affect companies such as First Solar Inc and SunPower Corporation, which are engaged in solar power production. The role-back plan by Germany is said to take place around April 2010 and would erode the profit of the companies due to drastic changes in the pricing of the electricity generated.
Source: www.zacks.com