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Solar module manufacturer, Canadian Solar Inc. (CSIQ - Free Report) announced that its 27.3 megawatt-peaks (MWp) solar photovoltaic (PV) power plant in Tottori Prefecture, Japan has initiated commercial operations from Aug 10, 2017.

The solar PV plantis being powered by the company’s 85,320 high-efficiency MaxPower modules and is expected to generate nearly 26,259 megawatt-hour (MWh) of clean and reliable solar electricity every year. The electricity generated will be purchased by Chugoku Electric Power Co., Inc. under a 20-year feed-in-tariff contract at the rate of 32 cents per kilowatt-hour (KWh).

Canadian Solar’s Japanese Solar Projects

Japanese government has been focusing to increase electricity generation from the renewable sources and Japan is gradually becoming a profitable market for high quality solar solution provider Canadian Solar.

Canadian Solar has successfully activated four solar power plants in Japan with combined capacity of 52.5 MWp of green energy in the month of July. (Read more: Canadian Solar (CSIQ - Free Report) Activates Four PV Plants in Japan)

Canadian Solar is currently involved in 137.8 MWp of solar projects in Japan.

Projects By Peers

Most recently, one of the company’s peers SunPower Corporation (SPWR - Free Report) , a subsidiary of TOTAL S.A. (TOT - Free Report) , was selected by Santa Rosa Junior College, a CA-based community collegefor installing a solar and storage project. (Read more: SunPower to Supply Community College with NewSolar Project)

Our View

With growing concerns regarding deteriorating climatic changes, and greenhouse emissions companies globally are making shifts to tap the benefits of solar energy. As such solar power is anticipated to become one of the major sources of energy.

The U.S. Energy information Administration (EIA) stated that total utility-scale solar electricity generating capacity at the end of 2016 was 22gigawatt (GW). Further, it expects solar capacity additions in the forecast to bring total capacity to 29 GW and 32 GW by the end of 2017 and 2018, respectively. The generation capacity from the renewable sources is anticipated to rise significantly over the coming years.

The rise in greenhouse gases worldwide has forced companies to look for eco-friendly energy opportunities. Keeping this in consideration, the company’s strong pipeline of projects along with pertinent inorganic strategies will further consolidate its position in the solar market.

Price Movement

In the past year, Canadian Solar has outperformed the industry. The company’s shares advanced 19.8%, compared with the industry’s gain of 6.9%.

The company caters to a geographically-diverse customer base spread across key markets in the United States, China, Japan, U.K. and Canada, with emerging opportunities in Brazil, India, Mexico, South Africa and Middle East. This may have led the company to outperform the broader industry.

Zacks Rank & Stock to Consider

Canadian Solar carries a Zacks Rank #3 (Hold).

Investors can consider a top-ranked stock from the same industry like SolarEdge Technologies, Inc. (SEDG - Free Report) that sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SolarEdge posted second-quarter 2017 earnings from continuing operations of 55 cents per share, beating the Zacks Consensus Estimate of 36 cents by 52.78%. The company’s 2017 estimates increased by 42 cents to $1.79 per share in the last 90 days.

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