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Canadian Solar (CSIQ) Unit Sells Two Projects to Concord
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Leading solar service provider in the U.S.Canadian Solar Inc. (CSIQ - Free Report) announced that its wholly owned subsidiary, Canadian Solar Solutions Inc., has finalized the sale of two solar power plants to affiliates of Concord Green Energy Inc. The deal was closed on Dec 29 for a total consideration of $115 million.
Details of the Deal
The deal includes the sale of the 10 megawatt (“MW”) AC BeamLight LP and the 10 MW AC Alfred solar power plants in Ontario, Canada to Concord Canada Inc. and Concord BeamLight GP2 Ltd.
Alfredutilizes approximately 46,656 Canadian Solar MaxPower CS6X-P photovoltaic (PV) modules, while BeamLight employs approximately 46,224 MaxPower CS6X-P PV modules.
The plants will generate approximately 35,941 megawatt-hours (“MWh”) of solar electricity per year, which translates into 665,130 MWh of electricity over 20 years, thereby displacing 467,437 metric tons of carbon dioxide.
Canadian Solar’s Take
According to the company, the latest deal is in sync with management’s focus on monetizing solar power plants to recycle capital and strengthen the balance sheet.
Solar Industry Outlook
Throughout 2016, the solar industry has grappled with challenges like declining solar panel prices, weaker power plant contracting activity and increasing regulatory stringency. The industry-wide downturn was owing to a looming supply glut of solar panels. As solar players continued to step up production in an effort to seize a higher market share, panel supply outweighed demand significantly.
Strong project build-up in the U.S. in anticipation of the Dec 2016 expiration of the solar investment tax credit (which was eventually extended) also played a major role in curbing activity in this space as developers now have more time to build their projects.
This had a material impact on solar companies such as First Solar, Inc. (FSLR - Free Report) , Azure Power Global Limited and Enphase Energy, Inc. (ENPH - Free Report) .
Further, the unexpected victory of Donald Trump in the Presidential election does not bode well for the renewable energy space. The President-elect has not only vowed to revive the coal industry but has even called climate change a “Chinese Hoax”.
Price Movement
Shares of Canadian Solar lost 44.7% in the last 12 months, better than the Zacks categorized Solar Market industry’s decline of 52.9%. The outperformance was possibly driven by the company's geographically diverse customer base, strong project pipeline and focus on acquisitions and other strategies to consolidate its position.
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Canadian Solar (CSIQ) Unit Sells Two Projects to Concord
Leading solar service provider in the U.S.Canadian Solar Inc. (CSIQ - Free Report) announced that its wholly owned subsidiary, Canadian Solar Solutions Inc., has finalized the sale of two solar power plants to affiliates of Concord Green Energy Inc. The deal was closed on Dec 29 for a total consideration of $115 million.
Details of the Deal
The deal includes the sale of the 10 megawatt (“MW”) AC BeamLight LP and the 10 MW AC Alfred solar power plants in Ontario, Canada to Concord Canada Inc. and Concord BeamLight GP2 Ltd.
Alfredutilizes approximately 46,656 Canadian Solar MaxPower CS6X-P photovoltaic (PV) modules, while BeamLight employs approximately 46,224 MaxPower CS6X-P PV modules.
The plants will generate approximately 35,941 megawatt-hours (“MWh”) of solar electricity per year, which translates into 665,130 MWh of electricity over 20 years, thereby displacing 467,437 metric tons of carbon dioxide.
Canadian Solar’s Take
According to the company, the latest deal is in sync with management’s focus on monetizing solar power plants to recycle capital and strengthen the balance sheet.
Solar Industry Outlook
Throughout 2016, the solar industry has grappled with challenges like declining solar panel prices, weaker power plant contracting activity and increasing regulatory stringency. The industry-wide downturn was owing to a looming supply glut of solar panels. As solar players continued to step up production in an effort to seize a higher market share, panel supply outweighed demand significantly.
Strong project build-up in the U.S. in anticipation of the Dec 2016 expiration of the solar investment tax credit (which was eventually extended) also played a major role in curbing activity in this space as developers now have more time to build their projects.
This had a material impact on solar companies such as First Solar, Inc. (FSLR - Free Report) , Azure Power Global Limited and Enphase Energy, Inc. (ENPH - Free Report) .
Further, the unexpected victory of Donald Trump in the Presidential election does not bode well for the renewable energy space. The President-elect has not only vowed to revive the coal industry but has even called climate change a “Chinese Hoax”.
Price Movement
Shares of Canadian Solar lost 44.7% in the last 12 months, better than the Zacks categorized Solar Market industry’s decline of 52.9%. The outperformance was possibly driven by the company's geographically diverse customer base, strong project pipeline and focus on acquisitions and other strategies to consolidate its position.
Zacks Rank
Canadian Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>