The big reason, according to Bachman: Cheap panel prices offered by Asian manufacturers like Suntech Power, Sharp, Trina Solar, Yingli Green Energy and Kyocera Solar.
Other major Chinese solar producers, including Yingli Green Energy, LDK Solar and Trina Solar, have also reported heavy losses.
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Some of that production is for North American companies like Canadian Solar, but among the fastest growing solar outfits are Chinese companies like Yingli Green Energy Holding and JA Solar Holdings.
While Silicon Valley companies were working on the problem, silicon prices fell and Chinese companies like JA Solar, Suntech and Yingli Green Energy rapidly expanded production of conventional solar panels, supported by tens of billions of dollars in inexpensive credit from the Chinese government as well as other subsidies like cheap land.
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The Ministry of Science and Technology confirmed that it has provided subsidies to more than 100 solar companies, including U.S. listed players Trina Solar and Yingli Green Energy.
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Already this week, both JA Solar and Yingli Green Energy reduced their outlook for full year shipments after posting discouraging Q2 results, as prices continue to fall in the face of slack demand.
As you can see from the chart above, the current price leaders are First Solar (NASD:FSLR), Renesola (NYSE:SOL), Trina Solar (NASD:TSL), Yingli Green Energy (NYSE:YGE), and Jinko Solar (NYSE:JKS).
In response, Piper today reduced ratings on Canadian Solar (CSIQ), JA Solar (JASO), SunPower (SPWRA), Yingli Green Energy (YGE), Trina Solar (TSL) and Suntech (STP).
Direct competitors to Suntech Power, according to Revere Data, include Baoding, China-based Yingli Green Energy Holding and JA Solar Holdings, based in Ningjin, China.
On the flip side were several of its direct competitors, such as Suntech Power, Yingli Green Energy, Trina Solar, and LDK Solar, all up substantially on the day. (For a bullish thesis on wind, read Wind Energy Is Poised To Pop After Strong First Quarter).
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Four Chinese firms warned against escalating trade tensions on Thursday - Yingli, Suntech, Trina and Canadian Solar.
Silicon prices fell ten-fold and Chinese solar companies like Suntech, Yingli and Trina ramped up production to further lower costs.
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His company uses panels from what he refers to as Tier-1 suppliers: Suntech ( STP), Trina Solar ( TSL), Yingli (YGE), Sharp and Kyocera.
The venture-capital backed company has signed deals this year with JA Solar, Solarfun Power Holdings and Yingli.
But over the past few years, the rapid expansion of low-cost Chinese manufacturers like Suntech, Yingli and Trina has sent the cost of conventional solar panels plummeting.
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Yingli Green Energy this afternoon warned that its Q4 solar module shipments were down close to 30%, worse than its previous forecast for a percentage drop in the low-to-mid 20s.
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First Solar is engaged in the manufacturing and sale of solar modules with an advanced thin film semiconductor technology, and it competes with other solar industry players like SunPower , Suntech Power and Yingli Green Energy.
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It uses panels built by Sanyo, Yingli Green Energy, REC Group of Norway (no relation to REC Solar) and Kyocera.
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Trina Solar ( TSL - news - people ), Yingli Green Energy and Suntech Power all down at least 75% from their peaks.
Trina Solar also posted a recent rise in its share price, as did Yingli Green Energy.
Chinese solar giant Suntech, for example, has opened a manufacturing plant in Arizona and Yingli is considering doing the same in a Southwest state, executives have told me.
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Yingli Green Energy shares are trading higher Monday morning, thanks to a trio of analyst upgrades for the Chinese solar products company.
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Yingli Green Energy, just off a scorching fourth quarter in which it was the top seller of commercial and residential solar panels in California, is taking its show to the East Coast.
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