Stocks of solar power providers rose Monday as questions about nuclear energy safety arose over a damaged power plant in Japan.
While stock indices generally slipped about 1 percent Monday, many solar power equipment providers saw shares advance.
MEMC Electronic Materials Inc. jumped $1.68, or 14 percent, to $13.70. The St. Peters, Mo., company manufactures silicon wafers used in solar cell production.
China-based Suntech Power Holdings Co. rose 37 cents, or 4.6 percent, to $8.41, and First Solar Inc., based in Tempe, Ariz., rose $7.13, or 5 percent, to $146.87.
Jefferies Equity Research analyst Gerard Reid says the cost of building new nuclear plants has escalated and sentiment in Europe has turned against nuclear energy and toward natural gas and renewable sources such as solar and wind.
The ease of installation of solar power will help boost its popularity, Reid says.
Germany has moved abruptly against nuclear energy following accidents at Japanese power plants. More than 40,000 people protested nuclear power in Suttgart, Germany, on Saturday, which prompted Chancellor Angela Merkel to speak on national television. She confirmed the government's commitment to switching to renewable energy and phasing out nuclear power.
"While nuclear proponents will point to the sheer magnitude of the quake, one cannot ignore the vulnerability of other nuclear plants which are mostly located on coasts or rivers," Reid writes in an investor note. "Acts of terrorism, natural disasters, or human error each harbor high risk of calamity, and will continue to do so."
He says accidents in the United Kingdom, Germany, France and Japan must raise serious concerns about the ability of nuclear power plants to withstand a terrorist attack.
Japan's Fukushima Dai-ichi plant has experienced two hydrogen explosions in the wake of last week's earthquake and tsunami. One was Saturday and the other Monday morning. The power plant faces the threat of a meltdown if water to cool nuclear rods cannot be maintained at adequate levels.
More than 185,000 people have been evacuated from the area of the plant. In Monday's explosion, 11 workers were injured.
Other solar energy companies seeing shares rise Monday include JA Solar Holdings Co. Ltd. rose 41 cents, or 6.5 percent, to $6.72. The Shanghai, China, company makes solar energy products including solar cells.
Yingli Green Energy Holding Co., based in China, rose 90 cents, or 8.6 percent, to $11.40. It makes photovoltaic modules for several countries including Germany, Spain, Greece, France, and the United States.
SunPower Corp. rose 20 cents, or 1.4 percent, to $14.47. The San Jose, Calif., company makes solar cells, panels and inverters.
