Summary
China's new 70GW target supports future solar demand growth.
Sell-side analysts changing opinions can be devastating to investors.
Harsh pollution in China accelerates solar adoption.
....Focus on the facts, and interpret them using simple logic. If you did that you would witness that solar demand around the world, and especially in China, is strong and growing. That would enable you to take advantage of panic-based stock price declines, buy shares of the best solar companies, and ride the coming tide.
Just one day after Deutsche declared that demand in China was "collapsing," the Chinese government announced it was doubling its solar target to 70GW in 2017, up from 35GW in 2015, an astounding target. By focusing on the very (very!) short term, one could have sold shares and acted according to Deutsche's commentary on May 15, just to find out on May 16 that they were dead wrong. You can't win playing that game. The only people who win are Deutsche and other brokers by encouraging more trade volume (und Aktiencheck und der Aktionär?)
China's solar target is 70GW by 2017, up from 35GW by 2015. China's rapid GDP growth didn't come without a price. The everlasting thirst for electricity has driven a massive build-out of power generation capacity. That massive build-out was comprised mostly of coal. About 70% of China's electricity comes from coal burning with more than 2,300 coal plants in the country.
Extreme pollution levels are more and more frequent in China's growing cities. Scientists in China have linked about 69% of the pollution to fossil fuel burning. China actually produces and consumes as much coal as the rest of the world, combined.
With people not allowed to leave their homes without face masks, and 8 million acres of land already too polluted to grow crops, China is forced to take the renewable energy path. In terms of renewable energy, solar power is a substantial player. Some plans are afoot to cut China's carbon emissions (four billion tons of CO2 per year) by 90%. That will result in China's electricity output becoming 80% renewable; in that scenario, China will have a solar PV capacity of 1,138GW in 2050, up from just over 20GW today.
The market leaders, the Chinese manufacturers are positioned to benefit the most of China solar plans. In my view, Trina Solar (TSL), JinkoSolar (JKS), Yingli Green Energy (YGE), ReneSola and JA Solar (JASO) will benefit the most from increase in China's demand. Percent of sales to China in 2013 JinkoSolar 35%-40% 600-650 MW
seekingalpha.com/article/...-solar-target-increased-once-again
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