Solar photovoltaic ("PV") product manufacturer ReneSola Ltd. (SOL) announced that it has entered into a Memorandum of Intent with Jiangsu Akcome Solar Science & Technology Co., Ltd. ("Jiangsu Akcome") to sell three of its grid connected utility-scale projects.
The projects, located at Qinghai and Xinjiang provinces at the western part of China, have a total power generation capacity of 60 megawatts (“MW”).
Jiangyin city, People's Republic of China-based Jiangsu Akcome produces several types of accessories including aluminum frame, mounting system, junction box and EVA film, and provides services to the solar industry.
ReneSola will utilize the proceeds from the transaction to pay off its existing debts, thereby improving future cash inflows. In addition, the company also intends to use a portion of the funds for expansion of its existing operations.
We note that demand for renewable energy is gradually rising, primarily owing to a greater awareness among the masses regarding its benefits; thereby influencing utility providers to shift to clean energy from traditional methods. 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 ReneSola’s order book that its solar PV modules are finding its way in projects ranging in size from a few kilowatts to multi-megawatts in markets across the globe. The company gained goodwill in terms of maintaining product and service standards along with delivery timing. Yesterday, ReneSola inked an agreement with Solar Power Systems of Mexico to install a 192 kilowatts (“KW”) project for glass manufacturer Vidrio Formas in Lerma, Mexico.
The Peoples Republic of China-based ReneSola currently has a Zacks Rank #3 (Hold). However, some better-ranked solar module manufacturers include JinkoSolar Holding Co., Ltd. (JKS) with a Zacks Rank #1 (Strong Buy), Enphase Energy, Inc. (ENPH) and First Solar, Inc. (FSLR) with a Zacks Rank #2 (Buy).