Suntech Power (
STP
), the leading producer of solar panels, expanded its product range
in the U.S. with the launch of two high-performance solar panel
products this week. The new offerings deliver higher power outputs
and reduced levelized cost for customers, and reinforce Suntech's
commitment to differentiate its products on the basis of superior
technology. Suntech competes with other solar players such as First
Solar (
FSLR
), LDK Solar (
LDK
), SunPower (
SPWRA
), ReneSola Ltd (
SOL
) and STR Holdings (STRI).
We have a $10.65
price estimate
for Suntech Power which is at a 40% premium to its current market
price.
R&D activity driving better products from
Suntech
Suntech more than doubled its R&D spending from 2008 to 2010
to develop superior, high performance products across customer
segments. Its latest offering, HiPerforma 245W, makes use of
Suntech's Pluto technology to boost efficiency by almost 10% over
traditional screen printed solar cells.
This announcement also marks Suntech's long awaited ability to
produce the Pluto cell on a large scale allowing it to market its
high-end module range in markets such as the US. Suntech plans
to have 450 megawatts (MW) of capacity for Pluto cells by the end
of this year compared to an overall capacity of 2.4 gigawatts
(GW).
The solar cell manufacturer also launched another product, the
290W Vd-Series multicrystalline module that boasts of higher
efficiencies as well as of slower degradation.
Both products come with Suntech's best-in-industry 25-year power
output warranty that promises customers 6.7% more power generation
than the standard industry warranty. We believe that a combination
of top-class products and warranty promises will help Suntech
triple its 2010 sales figure over the next 5 years. (See
Suntech's PV Module Shipments Could Triple Over
Next 5 Years
)
The U.S. is becoming an attractive market
Strong growth in demand for solar modules is making the U.S. an
attractive market for solar modules. Traditionally European
countries such as Germany, Spain and Italy have held the dominant
position in this space. However, with government support for
renewable energy projects in Europe expected to weaken in the
future, solar companies are turning to the U.S. and China to drive
demand for solar panels. (See
Suntech CEO: US and China Driving Solar Industry's
Growth
)
China leads the world as the most attractive destination for
projects in renewable energy according to E&Y. The U.S. stands
second with the government actively supporting clean energy
projects.
Click here for our full analysis of Suntech
Power