Whats happening to clean energy stocks?
These questions combined with the fear of worldwide recession have pummeled clean energy stocks even more than the overall market – they are down well over 50% from their peak a year ago. Solar stocks, which saw a meteoric rise in 2007, have given back the triple-digit gains they logged last year. Even passage of the long-awaited production tax credit didn’t help as concern grew that credit financing would be unavailable for clean energy projects. The collapse of fossil fuel prices, the flight from growth stocks to defensive stocks and “safe” investments such as Treasuries, and the perception that renewable energy companies can’t get by without more capital, has beaten clean energy stocks down to pulp. Top solar companies including SunPower and Suntech acknowledge that borrowing costs will be higher due to tightening credit. Evergreen Solar warned that if credit markets don’t improve in the next nine months, it won’t be able to fund the $400 million production facility it needs to deli
