ReneSola Ltd SOL has recently sold its 4.3-MW community solar portfolio to Atmosclear Investments, a European renewable energy and cleantech private equity group. The solar portfolio, comprising1,509 residential rooftop projects, is located in Scotland.
Solar Power Prospects in the United Kingdom
Per a report published by Mordor Intelligence, the solar power market in the United Kingdom is forecasted to see a CAGR of more than 5% during 2020-2025. Notably, solar photovoltaic projects at utility-scale and installations in recent times have been significantly growing in the country.
In particular, favorable government policies to decrease carbon footprints, declining costs of solar technologies and subsidies on solar systems are driving the solar power market in the United Kingdom.
Recently, in November, ReneSola and Innova entered into a partnership agreement to co-develop utility-scale projects in the United Kingdom. This was the second joint venture Renesola formed in the region in recent times and it is expected to strengthen its project pipeline in Europe and ultimately achieve its goal of reaching 1GW.
Such growing solar market opportunities attract solar power developers like ReneSola to create valuable projects and ventures like the aforementioned one and benefit from project monetization.
Project Monetization by ReneSola
From the viewpoint of its global expansion, ReneSola has been expanding its business in overseas markets like Canada, Spain, Poland, Hungary, France, Vietnam and Turkey. Also, the solar project developer is actively pursuing opportunities in new markets that include South Korea and India. Considering growth potential in the global solar market, expansion of ReneSola’s project portfolio internationally will likely improve profitability through the monetization of projects, like the latest one in Scotland.
Notably, in June 2020, ReneSola sold its 10.4-MW community solar portfolio to Nautilus Solar Energy, comprising eight single-axis tracker solar installations. In April, ReneSola closed the sale of a 15-MW portfolio of solar projects located in Hungary to Obton, which comprised 25 solar plants under construction. Prior to the sale in Hungary, ReneSola sold a portfolio of projects located in Canada to Grasshopper Energy, which consisted of 15 solar plants under development, with a combined capacity of 6.8 MW.
A Solar Player Following Similar Strategy
Project monetization is a common strategy followed by solar developers these days to earn profits. To this end, we observe that Canadian Solar CSIQ completed the sale of the Suffield solar project in September to BluEarth Renewables. Earlier, in March, the company completed a 17.7-megawatt peak (MWp) subsidy-free solar portfolio sale in Italy to Sonnedix.
Shares of ReneSola have increased 108.7% in the past three month compared with the industry’s growth of 38.1%.
Zacks Rank & Key Picks
ReneSola currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Two better-ranked stocks in the same industry are SunPower Corporation SPWR and Azure Power Global Ltd. AZRE.
SunPower delivered an average positive earnings surprise of 49.23% in the last four quarters. The company boasts a solid long-term earnings growth rate of 34.5%.
Azure Power Global delivered an average positive earnings surprise of 71.15% in the last four quarters. The Zacks Consensus Estimate for fourth-quarter earnings has risen 100% to 8 cents in the past 60 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Renesola Ltd. (SOL) : Free Stock Analysis Report
Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
SunPower Corporation (SPWR) : Free Stock Analysis Report
Azure Power Global Ltd. (AZRE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research