Modules of Canadian Solar Inc. have been selected by Argand Energy Solutions for their solar project located in Louisburg, NC. In collaboration with Horne Brothers Construction, Inc., Argand Energy Solutions began construction of the 2.3 megawatt (MW) project in Jun 2013. System grid connection is scheduled for Aug 2013.
The utility solar power system will utilize approximately 7,700 of Canadian Solar's CS6X-300P photovoltaic (PV) modules. CS6X-300P PV modules are polycrystalline silicon modules that carry a warranty period of 10 years on materials and workmanship and a 25-year warranty on linear power output performance.
With power tolerances in the range of 0% to 2.0%, these modules have maximum system voltage of 1000V. With respect to quality control inspections and testing, these modules have received key international certifications. Post completion, these highly efficient modules will allow the project to power approximately 460 homes.
While the project will help in reducing the use of carbon based fuels in the U.S., it will help Canadian Solar in expanding its footprint in the U.S solar market. We however note that like its peers Suntech Power Holdings Co. Ltd. and LDK Solar Co., Ltd. , Canadian Solar is also subject to anti-dumping and countervailing duties in the U.S.
In Oct 2012, the U.S. Department of Commerce (DoC) implemented anti-dumping duties of effectively 25.96% and countervailing duties of 15.24%. The U.S. DoC rolled out these tariffs to tighten supply of Chinese solar products in the U.S. and simultaneously encourage local players to tap the growing renewable domestic market. These steps have made the North American solar power market increasingly competitive for the Chinese solar power product manufacturers.
Canadian Solar caters to a geographically-diverse customer base spread across its key markets in Germany, Spain and the U.S., as well as emerging market opportunities in France, the Czech Republic, Italy, South Korea, Canada, Japan and China. Recently, Canadian Solar also received a contract to supply 91 MW of its CS6X PV modules to Asia-based solar power provider Soleq Solar (Thailand) Co Ltd. for solar power projects in Thailand.
These worldwide contracts will help the company in offsetting the adverse effects of anti-dumping duties imposed on the company in the U.S. In the near term, we would advise investors to accumulate its short-term Zacks Rank #2 (Buy) peer JinkoSolar Holding Co., Ltd. .