Canadian Solar Inc. (CSIQ) continues to receive solar products and service orders from domestic as well as international companies. The company’s subsidiary Canadian Solar Solutions Inc. has entered into an agreement with Silvercreek Solar Park Inc. ("Silvercreek") to offer 10-megawatts (“MW”) AC modules.
Per the agreement, Canadian Solar will provide 48,384 Canadian Solar CS6X modules to Silvercreek. The modules are covered by a 10-year warranty on materials and workmanship and have a 25-year linear power output performance guarantee. Canadian Solar's product and performance warranty depends on third-party insurance policy.
Canada-based Silvercreek will install the modules at its ground-mounted utility-scale solar power plant, located in Elgin County, south of the Town of Alymer, Ontario. This project is part of the Ontario Power Authority Feed-in Tariff contract and will be operational for 20 years. The plant is expected to be online and connected to the grid in Jul 2014. The project has an annual estimated total power generation capacity of above 17,500,000 kilowatt-hours.
After the completion of the project, the plant is expected to supply power to about 1,699 houses per year. In addition, it will lower carbon dioxide emission by roughly 246,940 metric tons over its operational period. Also, the project is expected to produce over 150 new jobs during its development and construction phases.
The CS6X modules show superior power output and higher system reliability. These modules cut current transmission path between cell fingers, reduce cell series resistance and improve module conversion efficiency.
Recently, the company has inked a contract with National Renewable Energy Corporation for the supply of CS6X-300W MaxPower modules in North Carolina.
We note that the demand for renewable energy is gradually increasing, primarily on the back of rising awareness among the masses regarding its benefits; thereby influencing utility providers to shift to alternate clean energy from fossil fuels. As solar energy is a major alternative energy resource, the solar product manufacturers are currently expanding their operations to capitalize on the aforesaid opportunity.
It is evident from Canadian Solar’s order book that its solar modules are finding its way in projects ranging in size from a few kilowatts to multi-megawatts in markets across the world. On Jan 9, 2014, the company had announced the completion and grid connection of a 10 MW ground mounted solar power project in China.
Canadian Solar currently has a Zacks Rank #3 (Hold). However, some better-ranked stocks in the same sector include First Solar Inc. (FSLR), Trina Solar Limited (TSL) and JinkoSolar Holding Co., Ltd. (JKS). While First Solar and Trina Solar hold a Zacks Rank #1 (Strong Buy), JinkoSolar carries a Zacks Rank #2 (Buy).