When it comes to the solar sector, government subsidies are a make-or-break for the industry. Even though solar-power technology has come quite a long way in the past several years, the price of solar power (including installation of new equipment) just isn't competitive with existing coal-fired and nuclear power plants. So, when Spain indicated that it might cut its solar subsidies by 35% back in July, the sector was hit particularly hard. In fact, the Claymore/MAC Global Solar Energy Index (TAN) fell more than 7.5% on the news.
Yesterday, however, Spanish online news outlet Cotizalia hinted that the government might actually increase its subsidies (Google translated link) for the amount of solar power bought to 400 to 450 megawatts per year.
According to ClusterStock, the following solar companies stand to benefit directly from the increase should the Spanish government move forward, as they maintain a 50% or greater exposure in the country:
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