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ReneSola Ltd. (SOL - Analyst Report) , the fully-integrated solar project developer and provider of energy-efficient products, announced that its board of directors has authorized an extension of its stock repurchase program. The original plan was authorized on Sep 23, 2015 for a period of 12 months. The company was has repurchased over 1.48 million American Depositary Shares ("ADS") in aggregate under the original authorization.

Details of New Authorization

Under the latest authorization, the company will be able to repurchase outstanding ADS worth up to $20 million in the 12 months ending Sep 2017.

The company will take into consideration existing share prices, prevailing market conditions and other factors before making a single or multiple repurchases during the same period. The new buyback program will be made in accordance to the applicable laws and will be subject to the required regulatory approvals.

Usage of Cash Flow

Thanks to its strong business model and management’s decision to monetize some of its projects, the company expects to generate cash flow of $100 million in the next few years. ReneSola remains focused on cash flow generation and utilizing it for capital investment, debt repayment, reducing its share count and growing its downstream project business.

ReneSola is not the only company in the solar industry to have increased its repurchase authorization. Recently, ATN International, Inc. (ATNI - Snapshot Report) , which has also some exposure in the solar industry, raised its share repurchase authorization to $50.0 million. The new authorization replaces the company’s existing $5.0 million repurchase program of 2004.

What’s Ahead for Solar?

Increasing awareness of the drawbacks of generating electricity from fossil fuels is spurring the demand for alternative sources of energy, particularly solar. Among the emerging economies, both China and India are each aiming to add 100 gigawatts of solar electric generation capacity to their existing infrastructure. This will surely increase the flow of contracts for solar companies like SunPower (SPWR - Analyst Report) , First Solar, Inc. (FSLR - Analyst Report) and ReneSola among others.

Zacks Rank

ReneSola currently has 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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