ReneSola Receives $11M Equity Investment From Shah Capital
ReneSolaLtd. SOL recently won an equity funding worth $11 million from Shah Capital Opportunity Fund LP. In connection with this transaction, ReneSola entered an investor rights agreement with Shah Capital.
ReneSola intends to allocate the net proceeds from the transaction to further expand its global project development activities.
Rising U.S. Investments in Solar Energy Space
In recent times, the global solar market has expanded significantly, led by substantial and increasing investments made by top companies, particularly from North America. Falling prices of solar modules along with flexible financing and procurement structures have led to rapid growth in corporate solar adoption. With China being one of the major solar forerunners across the globe, prominent U.S. investments can be observed in the Chinese solar market.
Per the SEIA, Apple AAPL was the largest corporate user of solar power in the United States, last year. Notably, as part of Apple’s commitment to address climate change and increase renewable energy usage within its supply chain, 10 suppliers and Apple decided in 2018 to jointly invest about $300 million over the next four years in the China Clean Energy Fund.
Keeping in these lines, Walmart WMT also is investing in Chinese solar projects. We believe the latest investment made by North Carolina-based Shah Capital is yet another example of how U.S. corporates are rapidly investing in Chinese solar projects, thereby offering further expansion opportunities to solar project developers, like ReneSola.
What’s Driving ReneSola?
ReneSola has been making considerable efforts for the execution of its downstream strategy. The company is currently expanding business in overseas markets like Spain, Canada, Poland, Hungary, France, Vietnam and Turkey. Furthermore, it is actively pursuing opportunities in new emerging markets like India and South Korea.
The global solar market has been rallying since the beginning of 2019, reflecting a significant improvement from last year. Per a report by Wood Mackenzie, global solar photovoltaic (PV) installations are expected to reach a new high of 114.5 GW in 2019, up 17.5% from 2018 levels. Such projections indicate promising prospects for global solar energy development. As a result, solar power developers like ReneSola and Canadian Solar CSIQ, among others, are expected to benefit, going forward.
Notably, in line with the company’s above-mentioned developments and projections, the latest capital infusion made by Shah Capital will not only enable ReneSola to continue the execution of its downstream projects, globally, but also strengthen its balance sheet and accelerate growth.
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