One of the world's largest solar companies,
Canadian Solar Inc.
) has entered into an agreement to supply 17 MW of solar
photovoltaic ("PV") modules to Potentia Solar Inc. (Potentia).
Potentia is an Independent Power Producer in Ontario, generating
electricity through its 100% solar-powered energy systems.
Per the agreement, Canadian Solar will supply its best-selling
module, the CS6P to Potentia to power several commercial rooftop
solar systems that will be installed on commercial, industrial and
institutional buildings in major urban areas of Ontario. The
modules will be used for the development of more than one hundred
rooftop solar projects. The company expects the projects to be
completed in 2013. The solar modules will be delivered to Potentia
on a per project basis.
Post completion, the solar systems will be able to generate
sufficient electricity to power 1,700 homes annually. The systems
will utilize Canadian Solar's high-performance PV Panels resulting
in the generation of clean energy.
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. Recently, in May, 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
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 competes with
First Solar, Inc.
Suntech Power Holdings Co. Ltd.
CANADIAN SOLAR (CSIQ): Free Stock Analysis
FIRST SOLAR INC (FSLR): Free Stock Analysis
SUNTECH PWR HLD (STP): Free Stock Analysis
To read this article on Zacks.com click here.