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Canadian Solar, DM Solar Tie Up to Expand in Latin America

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Canadian Solar Inc. (CSIQ - Free Report) has inked a sales partnership with DM Solar, a wholesale distributor of solar products based in Guadalajara, Mexico, to enhance its portfolio in Latin America.

The Objective

The partnership aims to cater to growing demand for solar panels in Latin America’s renewable energy market.

The panels sold under the partnership will be utilized mostly for small- and medium-scale industrial installations. They would also be used in different residential and commercial projects across Mexico.

Why Canadian Solar?

According to Yusef Kanchi, the co-founder and President of Sales of DM Solar, Canadian Solar was selected on the basis of its high product quality, established business ethics, financial strength and reliability. He believes that Canadian Solar's business is in sync with DM Solar's corporate image.

Canadian Solar’s Presence in Latin America

Canadian Solar has been taking initiatives to expand its presence in Latin America. In August, the company signed a 15-year power purchase agreement with Mexico's state electricity utility, CFE, for its 63 megawatt-peak (“MWp”) solar plant in Aguascalientes, which will begin operations in the third quarter of 2018.

Importance of Solar

A major growth area in the renewable space is solar energy. Solar demand has historically been concentrated in customer-sited distributed generation installations. As per a U.S. Energy Information Administration (“EIA”) report, utility-scale solar capacity is projected to grow by 8.0 gigawatts (“GW”) in 2016 and 5.3 GW in 2017. By the end of 2017, solar capacity is expected to nearly double from the 2015-end level.

Zacks Rank & Key Picks

Canadian Solar currently has a Zacks Rank #4 (Sell). Sunrun Inc. RUN, Sunworks, Inc. SUNW and Vivint Solar, Inc. VSLR are better-ranked stocks in the solar industry. While Sunrun sports a Zacks Rank #1 (Strong Buy), both Sunworks and Vivint Solar carry a Zacks Rank #2 (Buy).

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