Carboy said that investors who trade down these stocks on concerns over reduced incentives in Spain are short-term focused.

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Carboy explained that in Europe, energy tariffs are "feed-in tariffs, " where customers who produce their own solar energy can sell back surplus power at premium rates.

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"It's more psychological than operational as the price of oil has no direct bearing on the price of electricity, " said Michael Carboy of Signal Hill Group.

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But recently, questions have arisen over whether the Spanish government will limit the amount of solar installations that can participate in these incentives, which could lead to negative year-over-year growth, Carboy explained.

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Signal Hill Group analyst Michael Carboy said Wuxi, China-based Suntech's "bread-and-butter piece of business" was not expected to move the company's stock price significantly, and pointed out that due to "a fair degree of concern that the Spaniards will announce adverse revisions to its incentive structure" in the sector, many solar stocks have fallen in recent days.

FORBES: Magazine Article