Solar stocks rose dramatically on Tuesday, following Germany’s announcement on Monday that it would replace all of its nuclear power generation facilities with wind and solar by 2022.

German solar stocks rose in international markets Monday upon release of the news, but Chinese and other U.S.-traded solar stocks went up on Tuesday when the markets here opened following the Memorial Day holiday.

The news is significant for the solar industry as Germany is already the world’s greatest champion of solar technology. Though the nation is characterized by short winter days and cloudy overcast skies, it has installed more solar than any other country in the last decade.

Germany spurred growth in the solar industry by introducing a feed-in-tariff program that pays solar array owners for their contributions to the grid.

The news wasn’t just good for the solar industry, it was good for solar stocks.

“Germany will shutter its entire nuclear electricity capacity by 2022, which has good long-term implications for the solar space,” said Adam Krop, a senior analyst with Ardour Capital Investments.

“I don’t expect the announcement to have any near-term impact on industry fundamentals,” Krop said. “On headline news, they shot up 5 to 10 percent. But given near-term fundamental weakness across the industry, the stocks are returning to previous market levels.”

By midday Wednesday, solar stocks began slowly slipping back down. They have been trading low in recent months. And while Germany’s announcement bodes well for the industry, it will not have an immediate impact on the bottom lines for solar companies. The market has been as robust in the first part of this year as it was in the last quarter of 2010 when solar companies posted record growth.

Solar stocks underperformed in May because of weak first quarter results, Krop said.

“Slower demand in key European markets has led to higher inventory at both the corporate and channel level” Krop said.

That will likely lead to solar manufacturers discounting their modules, further eroding profit margins, Krop said.

“We expect the solar names to remain under pressure throughout the second quarter.”

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