QUICK NEWS, August 18: SUN & THE U.S. BUDGET; BIG BOOST FROM CHINA F-I-T; INDIA WIND IN ILLINOIS; PUTTING MONEY IN SUN

SUN & THE U.S. BUDGET
Solar energy policy: Will US budget cuts leave solar in the cold?
Bob Moser, 12 August 2011 (CSP Today)

"…The Department of Energy will likely face budget cuts for the coming fiscal year…An initial draft from the House indicated big cuts to solar funding, prompting some in the industry to question whether CSP may lose crucial federal support before it fully finds its legs…

"…[In the] House Appropriations Committee…budget…DOE's solar program would receive US$176 million altogether, about US$100 million less than what it received for FY2011…[T]hat type of funding cut could seem ominous for CSP research in the US. But DOE and NREL sources…[say] the Congressional budgeting process is so far from complete that it is impossible to predict right now how the solar program will end up…"

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"The next step in the process would be for the Senate to present its own version of a 2012 budget with funding proposed for agencies like the DOE. Both bills would then have to be reconciled into one final piece of legislation…

"Within the DOE there has been no indication that the program's funding for CSP in particular would be cut…A lot of factors can determine why certain solar types may get more or less funding…Industry leaders say government contracts offer credibility to CSP programs and researchers with potential investors. While there is no evidence yet of cuts, specifically for CSP funding at research centers like NREL and Sandia National Laboratory, if passed they could have a chilling effect on the flow of private money for the sector…"


BIG BOOST FROM CHINA F-I-T
New Government Incentive Delivers Massive Upside to China Solar Market
Henning Wicht, August 11, 2011 (HIS iSuppli)

"The Chinese government’s new feed-in-tariff (FIT) incentive program is expected to give a major boost to the country’s solar industry, potentially increasing installations by a combined 1.5 gigawatts (GW) in 2011 and 2012, according to the new IHS iSuppli Photovoltaics (PV) Service report…

"China’s PV installations previously were expected to amount to 1GW in 2011 and 1.4GW in 2012. However, the FIT could cause installations to increase by 50 percent…Installations in 2012 then could rise by 71.4 percent…[to] 2.4GW… a 1.5GW upside for installations during the two-year period…"

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"A FIT promotes the use of solar energy by guaranteeing that utility companies will buy excess electricity produced by solar installations at homes and businesses. This helps individuals or organizations to defray the upfront costs of investing in a PV system. Extensive use of FITs has helped Germany to become the world’s leading country for PV…

"…[The] documentation provided by the government…leaves several unanswered questions…For one, the document doesn’t mention the subsidy period. Furthermore, only a single FIT rate is offered for all PV projects installed in the different regions of China and for all installations methods…Also, the source of subsidy capital may not be sufficient to fund all PV installations…IHS predicts this account will remain in deficit until 2014…Finally, the document doesn’t address the issue of grid connection…"


INDIA WIND IN ILLINOIS
Suzlon Set To Open New Wind Power Training Center In Illinois
Mark Del Franco, 11 August 2011 (North American Windpower)

"Suzlon, the fifth-largest turbine manufacturer in the world, says it will begin training and safety classes in mid-September, with a grand opening for its new training center set for October.

"The training center is part of Suzlon's 64,000 square-foot Elgin, Ill.-based central distribution center, which opened in October 2010…[T]he training facility features a powered nacelle atop of a seven-foot tower, which…will help technicians simulate experiences in the field…"

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"The 8,000 square-foot wind turbine training center will…a 4,000 square-foot lab, a powered independent hub and pitch system, and a working-at-height training area. The wind turbine training facility will also feature a full-length Suzlon blade just outside the building.

"Meanwhile, the central distribution side of the facility, located near Suzlon's North American headquarters in Chicago, has reduced the original equipment manufacturer's transportation costs…for turbines and related equipment…Suzlon has already saved $1 million…"


PUTTING MONEY IN SUN
Make Money in Solar Energy the Easy Way
Selena Maranjian, August 16, 2011 (Motley Fool via Daily Finance)

"…If you expect the solar energy industry to thrive as we finally develop alternatives to oil and gas, the Guggenheim Solar ETF (NYS: TAN) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously…

"…The solar ETF's expense ratio -- its annual fee -- is 0.75%, which is a bit on the steep side for an ETF but still lower than many stock mutual funds…This ETF has performed disappointingly so far over the past three years…Investors with conviction need to wait for their holdings to deliver…With a low turnover rate of 17%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do…"

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"Some of this ETF's components made strong contributions to its performance over the past year. GT Advanced Technologies (NAS: GTAT) gained 47% and recently reported strong growth…Other companies pulled the ETF's return down last year, but could have a positive effect in the years to come. Chinese wafer maker ReneSola (NYS: SOL)…with fellow wafer and cell suppliers LDK Solar and JA Solar (NAS: JASO)…[face] some pressure as global demand isn't growing as rapidly as expected…

"Demand for solar energy is likely to grow ... eventually. If you think solar energy's time is coming soon, consider a solar ETF like this one. A well-chosen ETF can grant you instant diversification across the industry -- and make investing in and profiting from the sector that much easier."