Zacks Industry Outlook Highlights: China Sunergy, LDK Solar, Real Goods Solar, ReneSola and Solarfun Power Holdings - Press Releases

For Immediate Release

Chicago, IL – August 27, 2010 – Today, Zacks Equity Research discusses the Medical Device industry, including China Sunergy Co. Ltd. (CSUN), LDK Solar Co. Ltd. (LDK), Real Goods Solar Inc. (RSOL), ReneSola Ltd. (SOL) and Solarfun Power Holdings Co. Ltd. (SOLF).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/39359/Alternative+Energy+Stock+Review+-+Aug.+2010

A major growth area in this space is Solar Energy. The U.S. has a lot of catching up to do, despite enormous potential, to get anywhere close to the global leaders. According to the Solar Energy Industries Association (SEIA) -- the U.S. trade association of close to 500 companies in the solar energy industry -- Germany ranked first followed by Spain, Japan and then the U.S. in terms of cumulative installed solar electric power capacity, as of year-end 2009. In fiscal 2009, Germany (3.8 GW) was far ahead of the pack in terms of new installations, with Italy (700 MW) coming a distant second.

According to the European Photovoltaic Industry Association (EPIA) -- the world industry association for solar photovoltaic electricity market -- the cumulative global installed PV capacity stood at almost 22 GW at the of 2009, compared to only 9 GW at the end of 2007.

Here we take a look at the Solar Energy space and attempt to identify this nascent industry’s strengths and weaknesses.

OPPORTUNITIES

Environmental Advantage: Solar power is one of the most benign electricity resources. Solar cells generate electricity without air or water emissions, noise, vibration, habitat impact or waste generation.

Fuel Risk Advantage: Unlike fossil and nuclear fuels, solar energy has no risk of fuel price volatility or delivery risk. Although there is variability in the amount and timing of sunlight in the day, season and year, a properly sized and configured system can be designed to insure high reliability while providing a long-term, fixed-price electricity supply.

Location Advantage: Unlike other renewable resources such as hydroelectric and wind power, solar power is generally located at a customer’s site due to the universal availability of sunlight. As a result, solar power limits the expense and energy losses associated with the transmission and distribution from large-scale electric plants to the end-users. For most residential consumers seeking an environment-friendly power alternative, solar power is currently the only viable choice being a ubiquitous source.

Environmental Legislations: Alternative energy companies are increasingly benefiting from popular support in the U.S. through new legislation stipulating higher capital spending. At the federal level, Congress has extended the 30% federal investment tax credit (ITC) to both residential and commercial solar installations until December 31, 2016. Also, under the American Reinvestment and Recovery Act (ARRA) passed in February 2009, the U.S. Treasury Department implemented a program to issue cash grants in lieu of investment tax credit for renewable energy projects.

Also, the U.S. is in the process of implementing legislations to encourage retirement of fossil fuel based generation assets. For example, through the American Power Act currently under review, sponsored by Senators John Kerry and Joe Lieberman, is pushing for an industry-wide cap-and-trade system to reduce greenhouse gas emissions.

Subsidy Programs: Governments, most notably China, Japan, Canada, U.K., Australia, India and Middle East, have increased their financial support for solar projects. China is aiming at increasing its installed solar power capacity to 20 GW by 2020 from 140 MW capacity at the end of 2008.

Specific solar energy stocks under our coverage that stand to benefit from this environment with a Zacks #1 Rank (short-term Strong Buy rating) include China Sunergy Co. Ltd. (CSUN), LDK Solar Co. Ltd. (LDK), Real Goods Solar Inc. (RSOL), ReneSola Ltd. (SOL), Solarfun Power Holdings Co. Ltd. (SOLF), among others.

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CHINA SUNERGY (CSUN): Free Stock Analysis Report
 
LDK SOLAR CO (LDK): Free Stock Analysis Report
 
REAL GOODS SOLR (RSOL): Free Stock Analysis Report
 
RENESOLA LT-ADR (SOL): Free Stock Analysis Report
 
SOLARFUN POWER (SOLF): Free Stock Analysis Report
 
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