A leading global manufacturer of solar photovoltaic ("PV")
modules and wafers
) has received an order for the delivery of 15 kilowatts of solar
modules from the Taibah University in Medina, Makkah Province,
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The modules delivered by ReneSola will be used in an off-grid
power plant project to test off-grid solutions. The solar modules
will be used to charge the battery of the plant and are expected
to be delivered soon.
An off-grid solution featuring PV modules will be far most
cost-effective in comparison to other conventional means. The
company expects off-grid solutions accompanied by its solar
modules to be best suitable for the emerging markets like Africa,
South America and the Middle East.
With rising oil prices, solar energy would be a good option for
the Middle East countries. Saudi Arabia intends to invest $109
billion in order to generate one-third of its power from solar
power by 2032. In fact, the whole of Middle East is opting for
solar power to reduce its large carbon footprint and dependency
on fossil fuel sources. This would likely reap benefits for
the companies, such as
Trina Solar Limited
LDK Solar Co., Ltd.
Canadian Solar Inc.
JA Solar Holdings Co., Ltd.
With its extensive deserts and prolonged periods of sunny days,
the Middle East would be the perfect place for utilization of
solar energy. Leaving behind UAE, Egypt, Morocco, Tunisia and
Algeria, Saudi Arabia currently has around 3 megawatts of solar
Renesola modules are best suitable for the climates of Saudi
Arabia and the Middle East. ReneSola Ltd. enjoys a
geographically-diversified customer base. The company's focus is
on improving its operating efficiencies, generating material cost
savings through its vertically-integrated production structure
and introduction of innovative products.
However, we remain concerned due to higher installation costs and
stringent laws to regulate solar power that would stop the Middle
East countries to shift toward solar energy. Also, the company's
significant presence in the solar module original equipment
manufacturing (OEM) market will be hurt by Europe's challenging
Rising competition, credit risk from its customers, oversupply of
solar wafer & modules in the market, and the company's high
research and development expenses are other matters of concern.
The company presently retains a short-term Zacks Rank #4 (Sell).
We have a long-term Neutral recommendation on the stock.