New solar panel installations in Asia may see a push-out

That is, if oil price declines sustain.

In Asia Solar, near-term installations may not see a sudden stop, as the economics for projects under construction do not change.

According to a research note from Nomura, however, new installations should see a push-out if the oil price declines sustain.

The report noted that solar stocks have sharply corrected alongside other global energy names as oil prices have corrected in the last two weeks.

A push-out would translate into a much weaker demand environment in 1H15F than what is currently expected. Pricing across the chain would take a hit and likely all profits at manufacturers would be wiped out in such an environment.

Nomura noted that it still likes companies with projects / project pipelines on book, but the bigger focus would be on concerns on the manufacturing part of the value chain.