Peter C. Beller of Forbes sees a solar eclipse in the stock markets. According to Beller, the solar power sector may be about to deliver investors some bad news. The prices for photovoltaic cells are lowering rapidly which may be good for both the consumer and environment but present solar companies with difficulties during the recession.
The rapidly lowering prices lead the potential customers to a situation that is similar to the deflationary spiral: customers are willing to wait a few months, if they expect to get the same amount of power for less money later as the Deutsche Bank analyst Steve O’Rourke points out.
Links: Solar Stocks Eclipsed