JinkoSolar Holding Co., Ltd (JKS) declared that the first batch of the 100 kilowatt peak (kWp) rooftop solar photovoltaic ("PV') power generation system distributed to Eaton Electric Co., Ltd, a subsidiary of Eaton Corp. (ETN), was linked to the grid located in Shenzhen, China.
JinkoSolar Holding installed the high-efficiency PV solar panels on the roof of the factory owned by Santak Electronics Co. Ltd. The project is supervised by Eaton Electric Co. which bought 400 high-efficiency solar PV panels from JinkoSolar Holding.
The installation activity involved usage of a low-cost linkage control lone-axle tracking system to enhance the generating capacity and speed up the installation process. In addition, it prevents any damages to the existing waterproof structures which are composed of aluminum alloy.
The aluminum alloy structures are suitable for installations in the coastal provinces where the systems are often open to extreme humidity and harsh environmental conditions. The rooftop PV systems have the ability to generate approximately 100,000 Kilowatt (Kwh) of power and are spread across an area of roughly 1500 square meters. These are estimated to shrink carbon dioxide emissions by around 89,624 tons on an annual basis.
The success of the PV program in large-scale utility initiatives will further encourage the development of medium-to-small scale solar projects in China. This in turn will aid in strengthening the PV solutions business. The company previously struck a deal with China Three Gorges New Energy Corp. to supply 600 megawatts ("MW") of solar panels for the period 2013 to 2015 for installation works in the western China region.
We believe the company’s prospects look promising given its expansive businesses worldwide. With strict environmental legislation being steadily adopted by governments around the world, preference for solar energy is expected to rise in the future.
Furthermore, with a rebound in economic growth in China, solar generation is expected to get a boost. This is backed by the Chinese government raising the targeted solar energy capacity to 21 Gigawatt by 2015, a sharp 40% rise from 2012 level.
U.S. is a large importer of the solar energy products. The countervailing duties (“CVD”) of 15.24% and anti-dumping duties (“AD”) of effectively 25.96% levied by the U.S. will have an undesirable impact on JinkoSolar’s export business. Also, rumors of Europe following suit in terms of imposing tariff duties on solar panels which, if implemented, could further create headwinds for the company.
Currently, JinkoSolar Holding carries a Zacks Rank #3 (Hold). We presently prefer Zacks Rank #2 (Buy) renewable operator Sun Power Corporation (SPWR). Another solar player Suntech Power Holdings Co., Ltd (STP) recently completed a 3.5 MW ground mounted PV system project with Suntech panels in Saudi Arabia. The system comprised of 12,684 Suntech panels and inverters from SMA Solar Technology AG (S92).
Based in Shangrao, China, JinkoSolar Holdings through its subsidiaries is engaged in designing, developing, producing, and marketing photovoltaic products in China and internationally.
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