Oil Could Heat Up Solar Firms, Spark Consolidation

Soaring oil prices could should drive more business to China’s solar makers, also providing a potential spark to ignite long-awaited consolidation to the buzzing field of privately owned but strongly state-supported companies. Industry heavyweight JA Solar (Nasdaq: JASO) posted impressive numbers in its latest results, with fourth quarter shipments doubling and overall shipments expected to grow another 50 percent this year. (JA results) Those follow strong results from other players like Yingli Green Energy (NYSE: YGE) and Trina Solar (NYSE: TSL), who are likely to benefit as the world is reminded once again about the perils of its heavy reliance on oil. But equally interesting is the potential for an evasive consolidation, as competition remains fierce. As the industry gears up for even more growth, look to leaders like JA Solar, Yingli and Suntech (NYSE: STP) to be first out of the gate in the upcoming dance for merger partners to boost their shaky margins. Once that genie is out of the bottle, look for a spate of deals to come — both insider and outside China — as this industry gears up to take on the traditional energy giants.