AP:

Solar stocks surged Thursday on reports that China may roll out new subsidies for solar installations.
Piper Jaffray (nyse: PJC – news – people ) analyst Jesse Pichel said in a research note that the Chinese central government made the proposal for a subsidy worth $3 a watt for large installations. The subsidy may cover more than 60 percent of the cost to install the solar system.
“This subsidy undoubtedly shows the Chinese government’s strong support for the solar industry,” Pichel said.
Shares of Chinese manufacturer Suntech Power Holdings (nyse: STP – news – people ) spiked $3.27, or 42 percent, to $11.12 a share. Trina Solar Ltd. (nyse: TSL – news – people ) stock also shot up $3.63, or 42 percent, to $12.29. JA Solar Holdings (nasdaq: JASO – news – people ) Co. shares surged $1.02, or 38 percent, to $3.68.
In the U.S., First Solar, Inc. (nasdaq: FSLR – news – people ) stock jumped $18.80, or 14 percent, to $152.78 a share. SunPower Corp. (nasdaq: SPWR – news – people ) rose $3.87 a share, or 15.1 percent, to $27.91.