For China-based firms, the percentage of shares short is not available because the companies are also listed on other exchanges.

Canadian Solar Inc. (NASDAQ: CSIQ) saw short interest rise by 8.3% to 2.08 million shares, about 6.8% of the company’s total float.

First Solar Inc. (NASDAQ: FSLR) short interest drop by 7.4% to 17.07 million shares, which represents 28.1% of the company’s float.

GT Advanced Technologies Inc. (NASDAQ: GTAT) showed an increase of 8% in short interest to 41.34 million shares, about 34.9% of GT’s float.

MEMC Electronic Materials Inc. (NYSE: WFR) showed an increase of 8% in short interest to 16.88 million shares, or about 7.3% of MEMC’s float.

SunPower Corp. (NASDAQ: SPWR) saw short interest rise by 4.1% to 9.52 million shares, or 23.9% of the company’s total float.

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) showed a drop of 17% in short interest to 2.21 million shares.

LDK Solar Co. Inc. (NYSE: LDK) saw short interest fall by 11.9% to 3.03 million shares.

Suntech Power Holdings Co. Ltd. (NYSE: STP) showed a rise of 11.2% in short interest to 18.46 million shares.

Trina Solar Ltd. (NYSE: TSL) saw a short interest decline of 2.3% to 15.79 million shares.

Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) showed a drop of 0.3% in short interest to 7.51 million shares.

In the prior two-week period, Yingli’s short interest rose by 50%. In the most recent two weeks, the very modest rise appears to have drawn a line on just how bad investors think the company’s prospects are. The decline in short interest in LDK is likely due to a lack of fallout from its missed debt repayment. The company may be able to hold on, but that is still questionable. So far the government has not ridden to the rescue for either company, but the thinking may be that it is about to do so.

When First Solar Inc. (NASDAQ: FSLR) reported first-quarter 2013 results after the markets closed last night, investors did not know whether to cheer or boo. Share prices rose and fell and rose again in after-hours trading. But the verdict appears to be in this morning, as the stock is down about 9% after posting a new 52-week high yesterday.

Shares of First Solar jumped 27% in one day early last month following the company’s upward revision of it fiscal year 2013 guidance. The company guided revenues and EPS well higher, and last night reaffirmed that guidance. But the damage had been done.

SunPower Corp. (NASDAQ: SPWR), lately the darling of the solar sector, is down more than 5% today. The Chinese solar makers are faring worse perhaps. LDK Solar Co. Ltd. (NYSE: LDK) is down nearly 6%, JinkoSolar Holding Co. Ltd. (NYSE: JKS) is down more than 6% and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) is down more than 3%.

First Solar’s CEO tried to put a positive spin on first quarter results by focusing on the company’s project pipeline. But when asked how much of that pipeline could be expected to be converted into booked orders, he said, “It’s future opportunities, it’s not really capable of that kind of analysis.”

Investors have made up their own minds about those “future opportunities,” not just at First Solar but at the other solar makers as well: those opportunities are at least partially wishful thinking. How big a part remains to be seen, but it seems pretty clear that SunPower’s results, posted last week, are destined to be the top of the market for solar stocks for at least another quarter or two.

In the Chinese solar sector we tracked the following short interest changes: JA Solar Holdings Co. Ltd. (NASDAQ: JASO), LDK Solar Co. Inc. (NYSE: LDK), Suntech Power Holdings Co. Ltd. (NYSE: STP), Trina Solar Ltd. (NYSE: TSL) and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE). For China-based firms, the percentage of shares short is not available because the companies are also listed on other exchanges.

Canadian Solar Inc. (NASDAQ: CSIQ) saw short interest drop by 4.8% to 1.92 million shares, about 6.4% of the company’s total float.

First Solar Inc. (NASDAQ: FSLR) short interest rise by 12.2% to 18.43 million shares, which represents 30.6% of the company’s float.

GT Advanced Technologies Inc. (NASDAQ: GTAT) showed a decrease of 5.6% in short interest, to 38.29 million shares, about 32.3% of GT’s float.

MEMC Electronic Materials Inc. (NYSE: WFR) showed an increase of 1.4% in short interest, to 15.62 million shares, about 6.8% of MEMC’s float.

SunPower Corp. (NASDAQ: SPWR) saw short interest jump by 33.1% to 9.15 million shares, 23% of the company’s total float.

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) showed a drop of 16.3% in short interest, to 2.66 million shares.

LDK Solar Co. Inc. (NYSE: LDK) saw short interest rise by 0.8% to 3.44 million shares.

Suntech Power Holdings Co. Ltd. (NYSE: STP) showed a rise of 16.6% in short interest, to 16.6 million shares.

Trina Solar Ltd. (NYSE: TSL) saw short interest decline of 15.6% to 16.15 million shares.

Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) showed a rise of 50.9% in short interest, to 7.53 million shares.

Short interest is piling up in Yingli as the company looks like the next casualty among the Chinese solar energy players. LDK is teetering on the brink of disaster already, having missed a debt repayment last week. The big thing weighing down both these firms is that it appears that China’s central government will not rescue either of them. Both Trina Solar and JA Solar are better capitalized and could muddle through without government assistance.

The sharp increase in short interest in SunPower could rise even more during these two weeks, if the share price continues to rise. The company is tagging along on the boost in First Solar’s share price and there is no fundamental reason for SunPower stock to keep rising. The company is scheduled to report earnings on May 6.

The story only gets worse. According to a report at China’s caijing.com, LDK’s debt now totals $5.4 billion. Most of that is owed to the Chinese Development Bank (CDB), which in September of 2010 approved an $8.9 billion five-year loan package for LDK Solar. China’s state-controlled banks are famous for their forgiving attitude toward feckless borrowers and may yet ride to LDK Solar’s rescue.

But investors should not count on it. The CDB also pumped $7.3 billion in loans into Suntech Power at the same time it approved the LDK Solar loans and did nothing to prevent Suntech’s fall into bankruptcy earlier this year. LDK Solar, like Suntech, has no hope of repaying its massive debt.

Fourth-quarter sales at LDK Solar totaled just $136 million and gross margins rose to a negative 60.5%. The net loss came to $517 million. There is no hope that the company can turn that around enough to survive.

Solar panel maker Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) scored a total of $165 million in new loans from the CDB last week, but that is not likely to have much impact on the company’s fortunes going forward. Yingli Green Energy could be the next in line for a nosedive into bankruptcy.

Can any of China’s solar energy companies survive? One likely possibility is JinkoSolar Holding Co. Ltd. (NYSE: JKS), which has less debt and is better capitalized than any of the others. But the CDB and other of China’s state-controlled banks, not the equity markets, will be picking the winners here. A word to the wise.

The fundamentals of the solar panel business were no different yesterday than they were a week or a month ago nor are they different today. What’s different is the way First Solar will count its revenue. How an accounting change at First Solar can help SunPower Corp. (NASDAQ: SPWR), LDK Solar Co. Ltd. (NYSE: LDK), Yingli Green Energy Co. Inc. (NYSE: YGE), or any of the other solar makers is a mystery.

At First Solar, the decision to recognize revenue sooner rather than later helps 2013’s expected results. But nothing has changed in the marketplace. And First Solar’s plans to cut costs and boost margins might work and it might not. Nor will governments ride to the rescue again with improved subsidies. Those days are behind us.

JinkoSolar’s quarterly net loss per American Depositary Shares (ADS) doubled from a year ago, even though the company managed to pull its gross margins back into positive territory. This Chinese solar maker’s results are far more representative of the state of the industry than yesterday’s presentation from First Solar.

Shares of JinkoSolar are down 6.7% today at $5.41 in a 52-week range of $2.00 to $10.07.

Shares of First Solar are also down, by 5.1% at $37.33 in a 52-week range of $11.43 to $41.00.

In the Chinese solar sector we tracked the following short interest changes: JA Solar Holdings Co. Ltd. (NASDAQ: JASO), LDK Solar Co. Inc. (NYSE: LDK), Suntech Power Holdings Co. Ltd. (NYSE: STP), Trina Solar Ltd. (NYSE: TSL) and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE).

For China-based firms, the percentage of shares short is not available because the companies are also listed on other exchanges.

Canadian Solar Inc. (NASDAQ: CSIQ) saw short interest drop by 6% to 2.02 million shares, which is about 6.6% of the company’s total float.

First Solar Inc. (NASDAQ: FSLR) short interest fell by 10.8% to 16.43 million shares, which represents 27.3% of the company’s float.

GT Advanced Technologies Inc. (NASDAQ: GTAT) showed an increase of 0.8% in short interest to 40.57 million shares, about 34.3% of GT’s float.

MEMC Electronic Materials Inc. (NYSE: WFR) showed a decline of 6.4% in short interest to 15.41 million shares, about 6.7% of MEMC’s float.

SunPower Corp. (NASDAQ: SPWR) saw short interest fall by 17.6% to 6.87 million shares, or 17.3% of the company’s total float.

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) showed a drop of 6.1% in short interest to 3.18 million shares.

LDK Solar Co. Inc. (NYSE: LDK) saw short interest rise by 0.2% to 3.42 million shares.

Short interest in Suntech Power Holdings Co. Ltd. (NYSE: STP) declined 45.3% to 14.24 million shares.

Trina Solar Ltd. (NYSE: TSL) saw short interest retreat 0.7% to 19.14 million shares.

Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) showed a short interest drop of 11.9% to 4.99 million shares.

Suntech’s bankruptcy filing in the second half of March cooled the ardor of short sellers for the Chinese solar stocks. Instead of piling in, short interest either declined or rose modestly in all the Chinese stocks.

The next report on short interest should reverse what we have seen today. First Solar gave the entire sector a lift yesterday when it boosted its outlook for 2013 and share prices rose dramatically. Anyone caught short yesterday in any solar stock very likely got a bad sunburn. But nothing much has really changed in the sector: module prices are a little more stable but remain low, and government support for solar installations is not growing. Look for the shorts to wade back in.

First Solar Inc. (NASDAQ: FSLR)) is up 45.5% at $39.35.

Allied Nevada Gold Corp. (NYSEMKT: ANV) is up 30.3% at $15.36.

GAIN Capital Holdings Inc. (NASDAQ: GCAP) is up 26% at $5.38.

LDK Solar Co. Ltd. (NYSE: LDK) is up 24.3% at $1.33.

Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) is up 21.1% at $2.24.

And here are today’s five biggest losing stocks at closing:

BSD Medical Corp. (NASDAQ: BSDM) is down 29.1% at $1.17.

Kid Brands Inc. (NYSE: KID) is down 16.3% at $1.18.

Affymetrix Inc. (NASDAQ: AFFY) is down 13.7% at $4.02.

American Spectrum Realty Inc. (NYSEMKT: AQQ) is down 13.7% at $2.71.

A. Schulman Inc. (NASDAQ: SHLM) is down 12.8% at $25.93.

In the Chinese solar sector we tracked the following short interest changes: JA Solar Holdings Co. Ltd. (NASDAQ: JASO), LDK Solar Co. Inc. (NYSE: LDK), Suntech Power Holdings Co. Ltd. (NYSE: STP), Trina Solar Ltd. (NYSE: TSL) and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE).

For China-based firms, the percentage of shares short is not available because the companies are also listed on other exchanges.

Canadian Solar Inc. (NASDAQ: CSIQ) saw short interest rise 0.5% to 2.15 million shares. That is 7.1% of the company’s total float.

First Solar Inc. (NASDAQ: FSLR) short interest rose by 3.7% to 18.42 million shares, which represents 30.6% of the company’s float.

GT Advanced Technologies Inc. (NASDAQ: GTAT) showed an increase of 5.2% in short interest, to 40.25 million shares, or about 33.9% of GT’s float.

Short interest in MEMC Electronic Materials Inc. (NYSE: WFR) declined 1.7% to 16.46 million shares, about 7.2% of MEMC’s float.

SunPower Corp. (NASDAQ: SPWR) saw short interest fall by 16% to 8.34 million shares, or 21% of the company’s total float.

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) showed an increase of 0.7% in short interest, to 3.38 million shares.

LDK Solar Co. Inc. (NYSE: LDK) saw short interest decline of 3.9% to 3.41 million shares.

Suntech Power Holdings Co. Ltd. (NYSE: STP) had a drop of 8.6% in short interest, to 26.03 million shares.

Trina Solar Ltd. (NYSE: TSL) saw short interest rise of 1.5% to 19.28 million shares.

Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) showed a drop of 0.2% in short interest, to 5.66 million shares.

The bankruptcy filing by Suntech happened after March 15, so any impact on other solar players has not shown up yet. JA Solar got a reprieve shortly after the Suntech fiasco, and it looks like both Trina and Yingli will make it through the shakeout in Chinese solar stocks. LDK Solar remains the weakest of the current survivors.

Suntech was the largest maker of solar panels in the world, with annual capacity of around 2,400 megawatts of production capability. Yingli Green Energy Holding Co. (NYSE: YGE) has 1,700 megawatts of capacity, and Trina Solar Ltd. (NYSE: TSL) and J.A. Solar Holdings Co. Ltd. (NASDAQ: JASO) are not far behind. Total global capacity was around 59,000 megawatts in 2012, about twice as much as was installed last year. Something had to give.

First it was the higher cost companies in Europe and the United States, but the rapid expansion of Chinese capacity has now caught up with Chinese makers no longer able to get cheap loans from either the central or local governments. The Chinese government decided last year that it would not bail out its solar players, even though it had provided the funds for most of the expansion.

Now the government may cut back on the massive solar projects it has on its drawing board for this year. Bloomberg News reports that an official with the China Renewable Energy Society has said that the government may abolish subsidy programs for some of its largest solar projects and redirect the funds to smaller installations. That doesn’t sound like it would hurt particularly, but the manner in which the subsidies would be paid is the catch.

Under the current rules, developers selected by the government get a subsidy of $0.88 per installed watt provided the project is completed on time. This rapid payment scheme is what is at risk.

Smaller solar installations are awarded a feed-in tariff that pays off over 20 years at an above-market rate for the electricity generated. Staunching the flow of immediate payments will severely sharpen the pain caused by overcapacity.

LDK Solar Co. Ltd. (NYSE: LDK) may be the next casualty. The country’s second largest wafer maker has been scrambling for investors as it continues to post quarterly losses. Gross margins were negative in the third quarter of last year and are likely to be negative for the fourth quarter when the company reports earnings, currently scheduled for the end of April.

A cut to the Chinese government’s solar subsidies will hit all the Chinese companies hard. U.S. solar makers First Solar Inc. (NASDAQ: FSLR) and SunPower Corp. (NASDAQ: SPWR) are less vulnerable to a shift in Chinese subsidies, and their relative strength in designing, engineering, and installing solar PV systems has helped them ease the pain of falling module prices.

Since the beginning of the year, SunPower’s shares have more than doubled while First Solar’s shares are off about 12%. Of the Chinese solar makers, only J.A. Solar shows a gain (about 1%) since the beginning of the year. And there are more hard times ahead for the Chinese companies.

For China-based firms, the percentage of shares short is not available because the companies are also listed on other exchanges.

Canadian Solar Inc. (NASDAQ: CSIQ) saw short interest rise 3.5% to 2.14 million shares, which is 7.1% of the company’s total float.

First Solar Inc. (NASDAQ: FSLR) short interest increased by 6.4% to 17.77 million shares, which represents 29.5% of the company’s float.

GT Advanced Technologies Inc. (NASDAQ: GTAT) showed an increase of 8.3% in short interest, to 38.26 million shares, or about 32.2% of GT’s float.

The short interest in MEMC Electronic Materials Inc. (NYSE: WFR) grew 2.1% to 16.74 million shares, about 7.3% of MEMC’s float.

SunPower Corp. (NASDAQ: SPWR) saw short interest rise by 11.9% to 9.93 million shares, 25% of the company’s total float.

J.A. Solar Holdings Co. Ltd. (NASDAQ: JASO) showed an increase of 15.4% in short interest to 3.36 million shares.

LDK Solar Co. Inc. (NYSE: LDK) saw short interest decline of 19% to 3.55 million shares.

Suntech Power Holdings Co. Ltd. (NYSE: STP) showed a rise of 4.2% in short interest to 28.46 million shares.

Trina Solar Ltd. (NYSE: TSL) saw short interest rise of 5.6% to 19 million shares.

Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) showed a rise of 5.6% in short interest to 5.67 million shares.

Shares of the Chinese solar stocks continue to be volatile, and share prices are tied to news related to government spending on planned solar installation in China during 2013. First Solar’s weak earnings brought some shorts back. And short interest in SunPower jumped again, likely due to the belief that there is not much good news coming from the firm, which has seen share prices spike in the first few months of the year.