T.J. Rodgers, the impressive CEO of Cypress Semiconductor (CY – Last trade $35.61), was interviewed on CNBC on Tuesday. SunPower (SPWR – Last trade $129.11) is a subsidiary of CY.

Photo:westbywest, Creative Commons, Flickr

Rodgers questioned the link between oil prices and solar demand. Asked whether his company's business increases when the price of oil increases, Rodgers said: “Only about 6% of power is created with oil so it shouldn’t be connected (to solar). But the fact is, people who want solar power want to make the world a greener place and are very concerned about oil. So people who buy it – do so to make the world a greener place. But solar and oil really aren’t that well connected."

Asked about solar capacity now compared to two years from now: “I think capacity could double in 2 years if we had enough silicon. But I don’t think there’s enough silicon coming online…our capacity will be limited by how much silicon we get.”

On solar demand: “Demand is very high,” says Rodgers. “For the last 3 years we couldn’t make enough so demand is off the charts…for the next year we will sell everything we can make.”

Rodgers was asked whether SPWR's stock price is getting ahead of itself: “We’re driving the price (of solar) down and the more the price goes down, the more the demand is going up,” says Rodgers. “So the fundamental of the business is good.” He adds, “Regarding share price, I rarely made a prognostication that’s right. I think SunPower is fully valued. If you look at the company as it stands today you might say it’s fairly valued. But then you look at their annual plans for 1-2 years and you say they’re going to grow into that pretty fast.”

Disclaimer: I do not own SPWR. I do not own a solar panel.