Canadian Solar Inc.
) announced that it entered into a module supply agreement with one
of the largest U.S. residential installers,
Real Goods Solar Inc.
). Under the agreement, Canadian Solar will supply up to 40
MW of high-performance solar modules to Real Goods Solar to power a
range of commercial and residential installations in the U.S.
Canadian Solar's modules have been awarded key international
certifications attesting to the rigors of their formal inspections
and testing. The company is ranked among the top of the
California Energy Commission's Solar Electric Incentive Program for
their high PTC efficiency ratings. Canadian Solar is focused
on delivering the best value in solar with their recognized
high-performance solar modules and backstop warranty.
Real Goods Solar is a leading provider of turnkey commercial and
residential solar energy solutions, with more than 13,000 solar
systems in place. Real Goods Solar has more than 33 years of
experience in solar energy, beginning with the sale in 1978 of the
first solar photovoltaic panels in the United States. With 16
offices across the West and the Northeast, Real Goods Solar is one
of the largest solar energy installers in the U.S.
Canadian Solar is a vertically integrated manufacturer of silicon
ingots, wafers, cells, solar modules, panels and custom-designed
solar power applications. The company designs, manufactures and
delivers solar products and solar system solutions for both on-grid
and off-grid use by customers worldwide. It mainly focuses on
delivering best value in solar with recognized high-performance
modules. Canadian Solar has its module agreements spread worldwide.
Only last month, the company delivered its solar modules for a
photovoltaic plant in the German city of Dreieich-Buchschlag. The
plant has a generation capacity of 8 MW.
Being a low cost solar module producer, Canadian Solar focuses on
delivering high-performance modules. The prospects for Canadian
Solar look favorable based on a geographically diverse customer
base and improving operating efficiencies through its vertically
integrated manufacturing operation.
However, in the near term, we are concerned about the industry-wide
oversupply, leading to sharply falling Average Selling Prices,
tepid module demand in Europe and rising competition in the market.
Moreover, given the industry-wide high inventory level, we do not
foresee any short-term improvement in margins of the company. The
company retains a short-term Zacks #3 Rank (Hold) that corresponds
with our long-term Neutral recommendation on the stock. It mainly
First Solar Inc.
Suntech Power Holdings Co. Ltd.
CANADIAN SOLAR (CSIQ): Free Stock Analysis
FIRST SOLAR INC (FSLR): Free Stock Analysis
REAL GOODS SOLR (RSOL): Free Stock Analysis
SUNTECH PWR HLD (STP): Free Stock Analysis
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