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Canadian Solar (CSIQ) Unit Inks PPA with MCE Clean Energy

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Canadian Solar Inc.’s (CSIQ - Free Report) wholly owned subsidiary, Recurrent Energy, has signed a Power Purchase Agreement (PPA) to supply 100-megawatt (MW) ac solar power to MCE Clean Energy for a period of 15 years.

Details of the Deal

Recurrent Energy will develop the Tranquillity 8 solar project, located in Fresno County, CA. Upon completion, the plant will supply 100 MW of solar power to MCE Clean Energy, which will be enough to power nearly 48,300 homes in the region. Construction of the project will start in 2017 and it will begin commercial operations by late 2018.

The main aim is to create job opportunities and provide favorable conditions for shifting to clean energy.

A Recent Project Completion

Recurrent Energy recently developed the 200 MW ac/258 MW-peak (MWp) Tranquillity solar power project, with its majority being owned by Southern Power, a subsidiary of Southern Company (SO - Free Report) .

Tranquillity is expected to generate adequate electricity to power nearly 50,000 homes and is spread across an area of 1,900 acres in Fresno County.

Clean Sources of Energy – Solar

Due to its environment-friendly nature, solar energy has been gaining popularity of late. As per a U.S. Solar Energy Industries Association (SEIA) report, extension of the Solar Investment Tax Credit (ITC) will lead to further growth in the solar industry.

Solar energy currently contributes to only 1% of the total electricity produced in U.S., indicating ample growth opportunities for solar companies in the country, going ahead. The U.S. government is providing further support to the solar industry through the extension of tax credits, which will promote the growth of utility-scale solar projects in the country.

As per the SEIA, the U.S. solar industry will see the installation of more than 20 gigawatts (GW) of solar capacity and provide employment opportunities to more than 420,000 workers by 2020.

Zacks Rank & Key Picks

Canadian Solarcarries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the solar industry include Sunrun Inc. (RUN - Free Report) and Vivint Solar, Inc. (VSLR - Free Report) .

On an average, Sunrun has delivered a positive earnings surprise of 109.6% in the trailing four quarters. The company sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vivint Solar has delivered an average positive earnings surprise of 4.6% in the trailing four quarters. The stock carries a Zacks Rank #2 (Buy).

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