As 2013 comes to a close the Chinese solar industry sector is seeing perhaps the biggest upheaval imaginable. Suntech Power (STP) , formerly both China and the world’s largest solar panel producer, is fast approaching insolvency, done in by a massive default and questionable books. This leaves a major power vacuum in the country, and raises questions about how green industry companies operating out of China will adjust going forward.
RenaSola Ltd. ($SOL) released their third quarter earnings earlier in the week and failed to meet analyst expectations, which sent the company’s shares southward. The three-day slide was halted on Dec 10 as the Chinese government reaffirmed their commitment to meeting the 35GW 2015 cumulative installation target, before the company plunged once again.
The year has been kind to ReneSola, as it has to much of the Chinese, American, and Canadian solar industries. China has been especially aggressive in bolstering the green economy. The instatement of a Chinese solar subsidy program in January is expected to further strengthen Chinese solar companies like RenaSola, and assuage fears that the expiration of China’s Golden Sun program would kill off the nascent Chinese green energy industry.
Overseas moves have also bolstered ReneSola as of late, with the company recently announcing partnerships with several green-minded farms in California to produce major solar energy projects.
ReneSola manufactures solar wafers integral to the production of solar cells. They sell product to countries across the Americas and Europe, in addition to a sizable domestic business.
While ReneSola has dropped off significantly in the week, they still have experienced a substantial uptick on the year. The company’s shares have gained 85.63 percent in value from their January 1 price.
However, while the year has seen a nice gain, and 2014 presents a favorable domestic environment for growth, the week has not been kind to ReneSola. The company’s shares shed 22.03 percent from Dec. 5 to Dec. 11, settling at $2.87 a share.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer