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Why the Gloom on Solar-Energy Stocks?

Solar-power equipment makers' profits have been hit by the credit crunch and the glut of a key raw material

 

By David Bogoslaw - Businessweek.com 

 

The global credit freeze and a supply glut of polysilicon—the key raw material used in photovoltaic solar panels—have hurt solar-power equipment manufacturers' earnings this year. Over the long run, some analysts are hopeful the lower prices will make the technology more competitive with conventionally generated power and make these companies more compelling plays in the eyes of investors.