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Canadian Solar (CSIQ) Builds First Manufacturing Base in the US
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Canadian Solar Inc. (CSIQ - Free Report) recently announced that it is building its first manufacturing facility in the United States for producing solar photovoltaic modules (PV). The company has picked up Mesquite, TX, as the location for its first-ever manufacturing base in the nation.
Details of the Manufacturing Facility
The PV module facility, which boasts an investment of $250 million, has a manufacturing capacity of 5 gigawatts (GW) annually, which corresponds to nearly 20,000 high-power modules per day. Canadian Solar expects to reach the commercial operation of this state-of-the-art manufacturing facility by the end of 2023.
Rationale Behind the Addition
The renewable energy market of the United States is rapidly growing, buoyed by its aim to phase out fossil fuels and become more energy-efficient. Among other renewable sources, solar is dominating the energy mix, mainly due to its cost efficiency coupled with various incentives and benefits that come with its installation.
Per a report from Mordor Intelligence, the U.S. solar energy market is poised to witness a CAGR of 17.32% over the 2022-2027 period. This growth forecast indicates that there is enough room for solar players in the industry to capitalize on the increasing demand and witness potential gains.
In particular, the demand for solar components that boast cutting-edge technology and ease the process of installation is gaining traction. As a result, solar modules that form an integral part of any solar project witness intensified demand.
In such a scenario, Canadian Solar’s recent production enhancement strategy seems prudent, with the company aiming at tapping the benefits of the aforementioned demand for solar modules.
Peer Strategy
To reap the benefits of the growing solar demand, apart from CSIQ, solar companies that are strengthening their manufacturing capabilities are as follows:
SolarEdge (SEDG - Free Report) : As part of its manufacturing regionalization efforts, SolarEdge is expanding its manufacturing capabilities with a new manufacturing site in Mexico. The site is expected to finalize its ramp-up phase in the first half of 2023.
The long-term earnings growth rate of SolarEdge is 33.4%. Shares of SEDG have returned 9.2% in the past month.
Enphase Energy (ENPH - Free Report) : The company is planning to open six manufacturing lines by the end of 2023, adding a quarterly capacity of 4.5 million microinverters. This will bring its total quarterly capacity to more than 10 million microinverters by the end of 2023.
Enphase boasts a long-term earnings growth rate of 24.7%. ENPH shares have risen 6.4% in the past month.
First Solar, Inc. (FSLR - Free Report) : The company is planning to expand its manufacturing capacity by 11 GW by 2025. This includes its third manufacturing facility in the United States, which commenced its commercial operation in early 2023, and the first manufacturing facility in India, which should be operational by the second half of 2023.
First Solar is now projected to build its fourth manufacturing facility in Alabama in the United States. It is expected to commence operations in late 2024. Moreover, the company intends to expand its manufacturing footprint at its existing facilities in Ohio.
The Zacks Consensus Estimate for FSLR’s 2023 sales suggests a growth rate of 32.1% from the prior-year reported figure. First Solar shares have witnessed a stark improvement of 211% in the past year.
Price Movement
In a year, shares of Canadian Solar have soared 29.9% compared with the industry’s growth of 12.5%.
Image: Bigstock
Canadian Solar (CSIQ) Builds First Manufacturing Base in the US
Canadian Solar Inc. (CSIQ - Free Report) recently announced that it is building its first manufacturing facility in the United States for producing solar photovoltaic modules (PV). The company has picked up Mesquite, TX, as the location for its first-ever manufacturing base in the nation.
Details of the Manufacturing Facility
The PV module facility, which boasts an investment of $250 million, has a manufacturing capacity of 5 gigawatts (GW) annually, which corresponds to nearly 20,000 high-power modules per day. Canadian Solar expects to reach the commercial operation of this state-of-the-art manufacturing facility by the end of 2023.
Rationale Behind the Addition
The renewable energy market of the United States is rapidly growing, buoyed by its aim to phase out fossil fuels and become more energy-efficient. Among other renewable sources, solar is dominating the energy mix, mainly due to its cost efficiency coupled with various incentives and benefits that come with its installation.
Per a report from Mordor Intelligence, the U.S. solar energy market is poised to witness a CAGR of 17.32% over the 2022-2027 period. This growth forecast indicates that there is enough room for solar players in the industry to capitalize on the increasing demand and witness potential gains.
In particular, the demand for solar components that boast cutting-edge technology and ease the process of installation is gaining traction. As a result, solar modules that form an integral part of any solar project witness intensified demand.
In such a scenario, Canadian Solar’s recent production enhancement strategy seems prudent, with the company aiming at tapping the benefits of the aforementioned demand for solar modules.
Peer Strategy
To reap the benefits of the growing solar demand, apart from CSIQ, solar companies that are strengthening their manufacturing capabilities are as follows:
SolarEdge (SEDG - Free Report) : As part of its manufacturing regionalization efforts, SolarEdge is expanding its manufacturing capabilities with a new manufacturing site in Mexico. The site is expected to finalize its ramp-up phase in the first half of 2023.
The long-term earnings growth rate of SolarEdge is 33.4%. Shares of SEDG have returned 9.2% in the past month.
Enphase Energy (ENPH - Free Report) : The company is planning to open six manufacturing lines by the end of 2023, adding a quarterly capacity of 4.5 million microinverters. This will bring its total quarterly capacity to more than 10 million microinverters by the end of 2023.
Enphase boasts a long-term earnings growth rate of 24.7%. ENPH shares have risen 6.4% in the past month.
First Solar, Inc. (FSLR - Free Report) : The company is planning to expand its manufacturing capacity by 11 GW by 2025. This includes its third manufacturing facility in the United States, which commenced its commercial operation in early 2023, and the first manufacturing facility in India, which should be operational by the second half of 2023.
First Solar is now projected to build its fourth manufacturing facility in Alabama in the United States. It is expected to commence operations in late 2024. Moreover, the company intends to expand its manufacturing footprint at its existing facilities in Ohio.
The Zacks Consensus Estimate for FSLR’s 2023 sales suggests a growth rate of 32.1% from the prior-year reported figure. First Solar shares have witnessed a stark improvement of 211% in the past year.
Price Movement
In a year, shares of Canadian Solar have soared 29.9% compared with the industry’s growth of 12.5%.
Image Source: Zacks Investment Research
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.