Suntech Power Holdings Co., Ltd. (STP) has entered into an agreement with IBC SOLAR to deliver 50 megawatts (MW) of solar panels through the end of 2012. IBC SOLAR is a leading global specialist in photovoltaic systems.
Suntech and IBC SOLAR have been working together since 2004 to deliver quality solar systems worldwide. The high-profile rooftop installations on which they have worked include the New Fair Stuttgart (Germany) with a total generation capacity of 3.45 MW as well as 5.75 MW power plants in Osyan and Warora, India.
Suntech continuously focuses on research and development to enhance product performance. Its solar panels are popular and are preferred by customers due to their superior technology, recognized certifications, and consistent quality. Suntech’s solar panels feature 5% power tolerance and have been built to survive in all weather conditions, including 3.800 Pascal wind load and 5.400 Pascal snow loads that are well above the IEC standard requirements. They have a 25-year power output warranty.
Last month, the company presented a high efficiency, 60-cell, 255-watt polycrystalline module (STP255–20Wd) at Intersolar Europe 2012. This new module can be incorporated into almost any kind of solar application and makes use of optimized metallization technology to boost efficiency. This new module is suitable to operate in coastal applications as well. It has an anti-reflective hydrophobic layer that reduces surface dust and allows the module to absorb more light, achieving superior weak-light performance and enhanced module performance over time.
Orders have also been flowing in for the world’s largest producer of solar panels. In May this year, Suntech entered into an agreement with Krannich Solar to supply 120 megawatts of solar panels in 2012. In fact, global demand for solar panels increased by about 40% in 2011.
Suntech Power serves a geographically diversified customer base. The company is prudently expanding its revenue base to divergent markets around the globe, along with increasing megawatts shipped. Positive factors include ongoing expansion programs, higher conversion efficiency through its Pluto technology-enabled modules, China’s subsidy program and improving operating efficiencies.
However, the positives are tempered by fears of tepid module demand in Europe, rising competition, the volatile euro and the financial stability of its customers.The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock. The company mainly competes with First Solar, Inc. (FSLR).Read the Full Research Report on FSLR
More From Zacks.com