One of the leading global manufacturers of solar photovoltaic ("PV") modules and wafers, ReneSola Ltd. ( SOL ), has entered into an agreement with Cummings Properties for the supply of 512 kilowatts ("kW") of its high-quality, and high-efficiency solar modules.
Cummings Properties is one of the most prominent full-service commercial real estate development and property management organizations in Massachusetts. Per the deal, ReneSola will ship 512 kW of its 305 watt ("W") poly modules in September itself. Cummings Properties have entered into the contract to use the modules on its rooftop solar system spread in an area of two-million square foot corporate campus and retail center in Beverly, Massachusetts. Cummings Properties designs, constructs and controls the integration of solar modules on the centers rooftop solar system.
Further, the company had announced that its high-wattage 300 W and 305 W 72-cell poly line is ready for delivery from its east and west coast storehouses in the United States. The company has already been delivering 60 and 72-cell poly and mono portfolio high-efficiency solar modules ranging between 255 W to 305 W.
Recently, the company has entered into a contract to sell 4.6 megawatts ("MW") of its high-quality and high-efficiency 255 watt ("W") poly modules to Solar Planet Power Inc. The company plans to deliver the modules in the third quarter of 2012. Within six months of the initial delivery, Solar Planet intends to order up to 15 MW of additional solar modules.
ReneSola has a geographically-diversified customer base and China-based manufacturing assets to capitalize on the subsidy program in that country. The company's focus is on improving its operating efficiencies, generating material cost savings through its vertically-integrated production structure and the newly introduced diamond-steel wire production process.
In the current solar market place, the company is one of the low cost per kilowatt-hour module producers. Moreover, installation of higher wattage, high-efficiency poly modules will allow generation of same amount of power with less number of modules resulting in a decline in labor costs.
However the company's significant presence in the solar module original equipment manufacturing market is expected to be hurt by Europe's challenging financing environment, rising competition, credit risk from its customers, oversupply of solar wafer & modules in the market, as well as the company's high research and development expenses. The company presently retains a short-term Zacks #2 Rank (Buy).
ReneSola is a leading global supplier of high-efficiency solar PV modules and wafers. Capitalizing on proprietary technologies, economies of scale, high production quality, and technological innovations and know-how, ReneSola possesses a global network of suppliers and customers, which includes leading global module and cell manufacturers. ReneSola solar modules are among the best in their class with respect to annual kilowatt-hour output and can be found in projects ranging in size from a few kilowatts to multi-megawatts all around the world. The company mainly competes with JA Solar Holdings Co. Ltd. ( JASO ) and China Sunergy Co. Ltd. ( CSUN ).