JinkoSolar Holding Co., Ltd. (JKS - Free Report) recently declared that it has signed a memorandum of understanding with Shanghai Institute of Space Power-Sources (SISP). The parties will develop high efficiency solar photovoltaic cells to be used in space and on Earth.
This solar technology will be developed with low-cost silicon wafers, which will support large scale manufacturing with higher conversion rate. This will also increase the company’s solar panels export to global customers.
Demand for High-Quality Modules
The company is focused on its research and development activities as well as initiatives to develop high-quality wafer, cell and modules, which are being installed in solar projects across the globe. Courtesy of its research activities, the company continues to develop solar cells with high conversion rates. This enhances the efficiency of utility scale solar projects and lower costs. It is planning to invest $300 million in 2020.
JinkoSolar has already shipped more than 9.7 gigawatt (GW) of modules in the first nine months of 2019. In September, the company signed a module supply contract with METKA EGN 300 MW of ultra-high efficiency Cheetah modules to be installed at a large-scale solar power plant in the municipality of Talaván, Cáceres, Spain.
In November 2019, JinkoSolar signed an agreement to sell two solar power plants in Mexico with a combined capacity of 155 MW to White River Renewables — a Mexican renewable energy company. Total module shipments are expected to touch 18-20 GW in 2020 compared with11.4 GW modules in 2018.
Rising Usage of Renewables Globally
Per a report from the International Renewable Energy Agency (IRENAIRENA) share of renewable energy in the power sector will increase from 25% in 2017 to 85% by 2050. The upside is likely to be driven through growth in solar and wind power generation. With increasing demand of solar energy, we believe that the company’s expertise and recent business developments will boost its upcoming earnings.
Other solar majors like SolarEdge Technologies, Inc (SEDG - Free Report) , SunPower Corporation (SPWR - Free Report) and Canadian Solar Inc (CSIQ - Free Report) are also expected to benefit from growing demand of solar modules with their global operations.
Zacks Rank & Price Performance
JinkoSolar currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In a year's time, shares of JinkoSolar have surged 93.5% compared with the industry’s 66% rally.
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