Yingli Green Energy Holding Co. (YGE) said it expects to report a surprise drop in shipments for the first quarter

DOW JONES NEWSWIRES

Yingli Green Energy Holding Co. (YGE) said it expects to report a surprise drop in shipments for the first quarter from the fourth quarter because of subsidy policy changes in Italy, joining other companies in the solar-energy sector that have warned of disappointing results in recent days.

The Italian government announced in early March that it planned to reduce feed-in tariffs for solar power systems and disclosed the final policy early this month, a move that has weighed on companies across the sector. At the same time, severe winter weather conditions in Germany also had a negative effect on market demand in the period, Yingli said.

The company said shipments in the period likely decreased by a low teen percentage from the fourth quarter, compared with the previous estimate for a mid-single-digit increase. Gross margin is projected at 27% to 27.5%, down from the earlier estimate of 30% to 31%.

Yingli said it expects to deliver certain of the delayed orders in the second quarter and estimates that shipments in that period will increase by more than 30% from the first quarter.

Shares of the company, which expects to report results May 20, slipped 2.2% to $11.11 in premarket trading; they are up 15% so far this year.

Renewable Heat Incentive (RHI)

Renewable Heat Incentive (RHI)

Introduction of RHI

The introduction of the RHI will be phased, the first Phase
providing long-term tariff support for renewable heat technologies
in the non-domestic sector and not, as we had expected, for the
domestic sector. Air source heat pumps will not be eligible at
the start of the RHI, but are expected to be included in Phase
2, commencing from October 2012.
Why are air source heat pumps not eligible? (Phase 1)
DECC* claim more cost/benefit analysis is required, but we believe
they were:
- Influenced by the results of the recent, flawed EST trials
- Attempting to determine the actual ‘renewable heat’ element vs.
the proportion of electrical or fossil fuel input
- Misunderstanding information provided by industry.
Whilst the first Phase will only benefit the non-domestic sector. The
Government is introducing Renewable Heat Premium Payments
for the domestic sector.
A fund of approximately £15 million has been allocated to enable
payments to be made to households that install renewable heating
systems. These payments will include air source heat pumps.
The proposed premium payment for ASHPs is £850.

Eligibility
MCS certification (which is known to be one of the main criteria for
small/medium sized plants up to and including 45kW).
Further criteria will be announced in May 2011, two months ahead
of the anticipated parliamentary approval for the scheme.

Objectives of the Premium Payments Scheme: .
1.) To start July 2011
2.) To support up to 25,000 Renewable Heat installations in the
domestic sector
3.) To provide a fair spread of technologies across all regions of
Great Britain
4.) To develop a monitoring process to allow stakeholders to
understand and get the most out of renewable incentives
5.) Key focus on off-gas grid properties
6.) Provide clear eligibility criteria, including well-insulated homes
based on EPC**.
Under the RHI, it is intended that non-domestic installations that
meet eligibility criteria and were installed and commissioned on or
after 15th July 2009, will be able to claim RHI tariffs.

Important dates:
March 2011: RHI discussions began
May 2011: Renewable Heat Premium Payments criteria
announced
July 2011: Premium Payment Scheme starts (non-domestic
installations commissioned on or after 15th July 2009 to qualify).
October 2012: RHI Phase 2 starts.

Is it in the Governments or Energy companies interest to reduce CO2 or let you 'do it yourself" with MCHP units?

Is it in the Governments or Energy companies interest to reduce CO2 or let you 'do it yourself" with MCHP units?

Someone raised a good point on a forum which was whether it was in the governments or energy companies interest to reduce CO2? They are obligated to reduce CO2 are they not? Is it in the energy companies interest for you to reduce fuel usage? Is it their intension to let energy prices spiral so much people are forced to except fuel efficient equipment with the massive initial financial outlay and sell half the energy at 2x the price. Interesting thought with bulging populations.

But why do they seem keen on solar?

The payback is at least 10 years and the returns to be honest are so small it may give goverments time to sort out there energy policy and the taxation from energy being sold at record prices and amounts. Small wind turbines arnt even worth the bother. Air heat pumps or Fuel Cell Boilers (not released in many parts of the world) are the only option for some people now. Air heat pumps are now capable of DHW/CH and have a high COP (1kW electricity usage for 6kW heat output). With micro fuel cell CHP units you get domestic hot water, heating and 2 kw of electricty output to grid tie or sell back to the grid with efficiency's of 60% (current record). Unfortunatly the government have decided to offer a reduce the sell back price on MCHP units (Ceramic Fuel Cells Bluegen) to 0.08/kw verses 0.20p/kw for solar. Is this due to lost tax revenues? Interesting thought with bulging populations and increased energy usage. Time to act on CO2? Or lose taxation?