Highlights From Jefferies' Tour Of German Renewables (YGE, SATC)

Jefferies & Company recently conducted a German renewables tour, and provides the following highlights: 1) There will be no German solar cap in 2011, but the Ministry does want to prevent a 10GW boom market in 2011 and low demand in 2012. 2) PV pricing remains strong despite seasonal weakness in Germany which underscores ROW growth. 3) German grid operators believe they can absorb the amount of renewables coming on-line. We believe these developments are essential to the long-term health of the solar industry. Yingli Green Energy YGE, which closed Tuesday at $10.62, and SatCon Technology Corporation SATC, which closed at $4.07, were among the companies mentioned in the report.