ReneSola Ltd. ( SOL ) announced that it has successfully concluded the supply of 2 megawatt (MW) of polysilicon modules, Virtus II 260 watt (W), for the 4 MW solar program in Uenohara-shi, Yamanashi Prefecture, Japan.
The Uenohara solar project is run by MDI-SB Solar Corporation, a collaborative venture between Mitsuboshi Diamond Industrial Co., Ltd., and NIPPON STEEL. The delivery commenced in Apr 2013 and is a part of an agreement with NIPPON STEEL & SUMIKIN BUSSAN MATEX CO., LTD. The Uenohara facility is officially supplying power to the grid.
In addition, NIPPON STEEL signed a new contract with ReneSola for the delivery of an additional 3 MW of Virtus II 260W modules in the next two months. Currently, a negotiation process is underway for the supply of 15 MW modules to meet NIPPON STEEL's projected demand for 2014.
ReneSola's exposure to state-of-the-art technology and competent production ability helped it to become the first photovoltaic (PV) firm to manufacture 260 W of polysilicon modules on a large scale.
ReneSola's high-conversion efficiency wafers allow for the development of energy-efficient, low-light induced degradation, and cost-effective modules, which lead to higher output. This has resulted in customer retention for its products worldwide.
The company is persistently working to optimize the performance of its modules to tap the growing solar opportunities in Southeast Asia. The global PV market is expected to make a significant comeback in 2014 with capacity generation projected in the range of 45-gigawatt (GW) to 50 GW primarily driven by China, Japan and the U.S.
China is anticipated to install up to 15 GW next year which will boost ReneSola's growth momentum. The government's policy of refunding 50% of the value-added tax for sales occurring from Oct 2013 through Dec 2015 to local solar manufacturers helped trigger the rising demand trend.
Moreover, contract flows from the U.S. have been favorable despite the current tariff headwinds. However, post 2014, the upswing in Japan's solar market will fizzle out due to a lack of space and insufficient incentives.
Currently, ReneSola carries a Zacks Rank #3 (Hold). Other better-placed solar players include Zacks Ranked #2 (Buy) First Solar Inc. ( FSLR ), Trina Solar Ltd ( TSL ) and Enphase Energy, Inc. ( ENPH ).