Solar photovoltaic ("PV") product manufacturer ReneSola Ltd. (SOL - Free Report) continues to receive orders from Isolux Corsan Servicios, S.A. ("Isolux Corsan"). The company announced that it has signed an agreement with Isolux Corsan to supply 57-megawatts ("MW") of Virtus PV modules. The modules have an average power generation capacity of 250 watts (“W”).
ReneSola is manufacturing the solar modules at its facilities in Poland and India. The delivery of the solar modules started in Dec 2013. Isolux Corsan will utilize these panels at its three commercial projects in Cornwall, Dorset and Norfolk in the U.K. The projects are expected to be connected to the grid in Mar 2014.
Virtus II polycrystalline modules have a high module conversion competency and are a unique combination of high quality and efficiency. These modules carry a mechanical load capacity of up to 5400 Pascal and abide by the existing International Electro Technical Commission certifications and Underwriters Laboratories listings.
ReneSola has a strong alliance with Isolux Corsan and receives contracts at regular intervals. Recently, the company has provided 31.7 MW of solar modules to Isolux Corsan for its project in Suffolk, England.
Globally, demand for renewable resources is steadily rising mainly due to a growing awareness among the masses about its low-emission nature, thereby influencing utility providers to shift to clean energy.
As solar is an important alternate energy resource, ReneSola is currently expanding its operations in Europe, Asia and Africa to take advantage of the rapidly growing market. These initiatives will help the company to diversify its revenue sourcing, thereby ensuring stable future cash inflow.
Though Jiashan, the Peoples Republic of China-based ReneSola has a stable contract stream, we are concerned about its future performance. In spite of improving shipment volumes, the company reported a bigger loss in the third quarter of 2013 due to the closure of a part of its polysilicon factory. Recurrence of such incidents will affect ReneSola's performance in the future.
ReneSola currently has a Zacks Rank #4 (Sell). However, some better-ranked stocks in the same industry include Trina Solar Ltd. , First Solar, Inc. (FSLR - Free Report) and JinkoSolar Holding Co., Ltd. (JKS - Free Report) . While Trina Solar and First Solar carry a Zacks Rank #1 (Strong Buy) and JinkoSolar holds a Zacks Rank #2 (Buy).