Canadian Solar Inc. (CSIQ - Free Report) has inked a contract with National Renewable Energy Corporation (NARENCO) for the supply of solar modules in North Carolina.
Per the deal, Canadian Solar – one of the world's largest solar power companies – will supply 84,480 solar modules that are to be installed on four utility scale solar projects. These projects will likely generate 25.3 megawatts (MW) of energy in North Carolina.
For the installations, Canadian Solar’s CS6X-300W MaxPower modules are to be used. Of the four ventures, three are located in Wayne County – one in Mount Olive and the other two in Goldsboro. Each of the Wayne Solar Project will offset 34,276 tons of carbon-dioxide that is tantamount to removing 4,155 vehicles off the road. The fourth project, located in Kenansville, Duplin County, is 5.83 MW in size with expected annual output of 8,775 MW.
The MaxPower CS6X-300W modules not only provide high yield but also ensure long-term performance at on-grid solar applications. The latest award is expected to boost Canadian Solar’s module sales by roughly 1% this year.
Besides the current deal, Canadian Solar has recently entered into a supply agreement with EOSOL Mexico to supply 8.7 MW of its MaxPower CS6X solar modules. Canadian Solar also received PV module delivery contracts from Turkish, Thai and South African companies.
Canadian Solar is a low-cost, vertically-integrated solar module producer with predominantly China-based manufacturing assets. The prospects for Canadian Solar – which has offices in both Canada and China – look favorable based on a geographically diverse customer base.
Shares of Canadian Solar rallied 7.9% on Jan 7 following the announcement of the deal. Another China-based solar player, Yingli Green Energy Holding Co. Ltd. (YGE - Free Report) announced that it has entered into an alliance with China National Nuclear Corporation to develop and construct distributed generation solar projects across China. Yingli and China National Nuclear joint venture is expected to develop solar projects that will generate 500 MW of solar energy in China.
On Jan 7, Yingli’s share price jumped 8.4% to $7.08. The solar sector received a boost on the back of good news flowing in at these two companies. Share prices of other Chinese solar companies saw an uptrend yesterday with Trina Solar Limited gaining 3.1% and Daqo New Energy Corp. (DQ - Free Report) advancing 4.7%.
Canadian Solar currently has a Zacks Rank #4 (Sell). Investors can look into Trina Solar Limited, sporting a Zacks Rank #2 (Buy).