ReneSola (SOL) To Develop 107 MW Solar Projects In U.S.

Leading provider of energy-efficient products and project developer, Renesola Ltd. (NYSE:SOL) has announced an update on its project pipeline in the U.S. The China-based company intends to construct 107 megawatts (MW) of solar projects across the states of California, Massachusetts, Minnesota and North Carolina.

Per the plan, ReneSola will begin the construction of 37 MW of solar projects in North Carolina and Massachusetts in the second half of 2016. Construction of the remaining 70 MW, which will be based in Minnesota and California, will begin in 2017.

How ReneSola’s Global Presence Helps

ReneSola started to branch out globally, establishing its base in countries like Japan, Australia, France, India, the UK and Canada among others. The company continues to benefit from a steady flow of contracts from both domestic and international customers. Last month, the company formed a partnership with UCK Group, a leading Turkish solar energy solution provider, to develop a pipeline of solar projects in the country with a total installed capacity of 116 MW.

What’s Ahead for Renewable Energy?

We note that increasing awareness of the drawbacks of fossil fuels is spurring the demand for renewable sources of power generation, particularly solar. Per a U.S. Energy Information Administration report (EIA), total renewables used in the electric power sector is expected to increase 13% in 2016 and 3.3% in 2017. Generation from renewables other than hydropower is forecast to grow 14.5% in 2016 and 8.9% in 2017. Among these, solar energy will constitute only 1.2% of the total U.S. utility-scale generation in 2017, indicating immense room for growth. Other solar companies are benefitting from the boom as well.

What about Other Chinese Solar Companies?

JA Solar Holdings Co., Ltd. (NASDAQ:JASO) recently won a contract to supply solar modules for “Front Runner”, a national advanced photovoltaic (PV) technology demonstration project in Datong, China. Per the contract, JA solar will supply 420 megawatts (MW) of modules, including 150 MW of the high-efficiency monocrystalline Percium modules. The first phase of the “Front Runner” project has a total installed capacity of 950 MW, of which 44% of the modules will be supplied by JA Solar. (Read More: JA Solar to Supply Solar Modules for Front Runner Project)

Going forward, Asian countries like China, Japan and India are particularly likely to witness a phenomenal rise in solar energy usage. Chinese solar module manufacturers such as JinkoSolar Holding Co., Ltd. (NYSE:JKS) and Trina Solar Limited (NYSE:TSL) among others are expected to benefit immensely from this surge in demand.

Zacks Rank

ReneSola currently sports a Zacks Rank #1 (Strong Buy).