Sector Snap: Trina Leads Solar Higher

Trina gained $3.22, or 9.8 percent, to $35.97 in morning trading.

Other stocks also rose as a solar-power conference in Germany kicked off. Analysts attending the Munich Photon Expo indicated that polysilicon supplies may remain tight through next year, but that companies are moving aggressively to bring the cost of solar power on par with traditional electricity.

Currently solar energy costs about three times as much as coal and natural gas to produce electricity.

Lehman Brothers analyst Vishal Shah said in a note Wednesday that conference attendees indicated polysilicon spot prices are up sharply this quarter. Spot prices are about 20 percent higher than during the fourth quarter, Shah said.

"Although there is a lot of talk of new supply coming into the market, the issue in our view is that most of the new capacity is likely to come online in late 2009," Shah wrote.

Trina's deal was seen as favorable because the prices are predetermined and bring the company's secured supply level up to 95 percent.

Calyon Securities analyst Kelly Dougherty noted that more companies are expecting grid-parity solar-power pricing over the next couple of years. First Solar Inc. had been alone in predicting the industry could reach that goal by 2010 to 2012, but "sentiment in Munich now seems to be turning increasingly to 2010 as a likely timeframe," Dougherty wrote.

First Solar shares gained $13.29, or 5.6 percent, to $250.82.

Elsewhere in the sector, Solarfun Power Holdings Co. rose $1.16, or 9.4 percent, to $13.47; China Sunergy Co. rose 62 cents, or 8.3 percent, to $8.11; Yingli Green Energy Holding Co. lifted $1.22, or 7.1 percent, to $18.45; and JA Solar Holdings Co. added $1.30, or 6.9 percent, to $20.17.