SunPower Corporation (SPWR), Yingli Green Energy Hold. Co. Ltd. (ADR) (YGE) & Trina Solar Limited (ADR) (TSL): Which of These 3 Solar Firms Is Right for You?

Duties are costing Trina

One of the challenges of being a solar company that is ready to take on contracts throughout the world is the duties and other costs associated with working in new jurisdictions. Trina Solar Limited (ADR) (NYSE:TSL) is facing some major challenges, and the company is paying billions for importing solar equipment. Furthermore, the firm has $319 worth of inventory, which is incredibly high for a company worth only $440 million. If the demand was there then the inventory would be justified, but the firm has a severe imbalance between its current supply level and the demand for it.

Which firm is right for you?

With governments throughout the world progressively accepting greener forms of energy, the solar industry is set for major profits in the years ahead. Of these three firms, I would invest in Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) due to the major contract that it recently scored. As a long-term investor, however, I need to be ready for the company’s bumps and bruises, and hold tight. I see the regularity of contracts increasing, and with Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) making major connections in China, expect major growth ahead.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Which of These 3 Solar Firms Is Right for You? originally appeared on

Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.