ReneSola Ltd. (SOL - Free Report) will supply its new range of quality photovoltaic (“PV”) panels to Segen Ltd ("Segen") to enhance its portfolio. Segen is the UK's leading distributor of Solar PV and Solar Thermal products and also value-added distributor of renewable energy technologies.
In order to meet the current customer demand and expected future requirements in the solar PV market, Segen will now include ReneSola's 245 watt ("W") and 250 W Virtus modules in its portfolio.
Virtus modules makes use of leading edge Quasi-Mono wafer technology that combines the high quality of mono crystalline silicon with the low cost of multi crystalline silicon PV technology to produce more efficient and cost-effective solar wafer. The Virtus range, which is much better than the conventional 16.5% efficiency for multi crystalline PV cells, has the capacity to convert photons to electrons at efficiencies of more than 18.2%. Under high temperatures, the range offers superb electricity generation capacity along with a lower level of light-induced degradation.
When compared to monocrystalline wafers, Virtus has much lower energy consumption as well as manufacturing costs. This helps in reducing investment in photovoltaic systems, thereby improving the rate of return on investment.
In July this year, ReneSola Ltd. had also sold 5.95 MW of its 250 W high-quality, high-efficiency Virtus modules to Solargain PV Pty Ltd ("Solargain"). Solar gain is one of the top solar distributors in Australia and also one of Australia's largest integrated solar energy and solar hot water suppliers.
A few days back, Segen had entered into a partnership with Canadian Solar Inc. (CSIQ - Free Report) to add Canadian Solar’s product range to its portfolio. The main motive of these solar companies behind using solar modules is to provide electricity generated from renewable energy.
ReneSola is a leading global manufacturer of high-efficiency solar PV modules and wafers. ReneSola solar PV modules can be found in projects ranging in size from a few kilowatts to multi-megawatts in markets around the world, including the United States, Germany, Italy, Belgium, Greece, Spain, China and Australia. The company’s geographically-diversified customer base insulates it from various risks.
The company’s focus is on improving its operating efficiencies, generating material cost savings through its vertically-integrated production structure and the newly introduced diamond-steel wire production process.
However, the company’s significant presence in the solar module original equipment manufacturing market is slated to be hurt by Europe’s challenging financing environment. We are also concerned about the tepid demand for solar products in Europe, rising competition, credit risk from its customers, oversupply of solar wafer & modules in the market, and the company’s high R&D expenses.
Currently, the company retains a short-term Zacks #2 Rank (Buy). We have a long-term Neutral recommendation on the stock.