Red, Green, and Blue

Anyone who was impeded before by the cost of adding solar panels to their homes can now rest a little easier: The economic stimulus plan includes a federal tax credit worth 30 percent of the cost of a new solar system for a house. The cost, of course, is still high, but hey, more people will probably buy into it, won’t they?

But what if there are no more solar companies left? Publicly-traded green technology companies, like those that research and manufacture those costly panels, are being hit hard in the stock market and some are facing bankruptcy; it may take more than homeowner incentive to lift them up again. Because while homeowners may buy the systems now at the new prices, the question is: Will they buy enough to keep the companies afloat?

I took a look at a few of the public solar companies to see which, if any, have survived the recent stock market crash. The news doesn’t look too good.

Akeena Solar Inc.
Percentage stocks have fallen in the last year: 75 percent
Akeena is one of the largest sellers of solar power systems in the country. But according to the chief executive Barry Cinnamon, growth rate has slowed from above 40 percent to just over 25 percent.

Biosolar Inc.
Percentage stocks have fallen in the last year: 72 percent
Biosolar has worked to reduce the cost of panels by using bio materials from renewable sources instead of petroleum-based plastic solar cell components, but their stocks didn’t even spike on Election Day like most of the other solar companies, and their stocks are on a consisten downward trend.

Daystar Technologies Inc.
Percentage stocks have fallen in the last year: 47 percent
While stocks haven’t fallen as much percentage-wise as some companies, Daystar lost $6.7 million in the third quarter of 2008, compared to a loss of $3.8 million in 2007.

Evergreen Solar Inc.
Percentage stocks have fallen in the last year: 86 percent
Evergreen’s Web site advertises that “there’s never been a better choice for solar panels.” But the company’s numbers indicate the opposite: In the fourth quarter of 2008, net lost was $0.32 a share, and about $40 million in closing down one facility and starting up two more facilities.

First Solar Inc.
Percentage stocks have fallen in the last year: 36 percent
First Solar is perhaps the one redeeming company in this list. Though the company produces what it terms “less efficient,” thinner panels, the cost is dramatically cheaper than thicker panels. Maybe because of this, the company’s stocks have actually gone up 60 percent since November, even if they’re well below the price a year ago.

>>Read the latest about solar power at Green Options

Suntech Power Holdings Co. Ltd.
Percentage stocks have fallen in the last year: 83 percent
Suntech had raised its 2008 targets at the end of January 2008, but shares have taken a plunge throughout the year.

So what does this all mean? The stimulus includes a tax provision worth up to $2.3 billion for investment in advanced energy facilities and next-generation green technologies. Of the companies in this list, First Solar Inc. and Evergreen Solar Inc. would benefit, along with some wind turbine manufacturers and a solar firm based in Norway. But what about the rest of the companies? How soon can they pick themselves up from net losses and plummeting shares?

Photo Credit: roddh at Flickr under Creative Commons

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