ReneSola (SOL) To Sell 6 Utility-Scale Projects Of 26MW In UK

ReneSola Limited (NYSE:SOL) has entered into an agreement to sell six utility-scale projects in the UK with an aggregate capacity of 26 megawatts (“MW”) to a European investor.

Details of the Projects

The projects utilize ReneSola's Virtus II modules and are located in Carlam Hill Farm, North Wales and Monmouthshire. These projects are pre-accredited with a tariff rate of 6.16p per kilowatt-hour (“kWh”) and eligible for a guaranteed export tariff of approximately 4.91p per kWh.

ReneSola’s Take on the Deal

According to ReneSola's Chief Executive Officer (CEO), Xianshou Li, despite the political uncertainty in the UK arising from the Brexit vote, demand for productive solar power assets continues to be strong. He added that the company plans to grow its project development business extensively to tap in on the bountiful opportunities and boost returns on investment.

The latest sale is in line with the company’s focus on developing its pipeline and monetizing projects in attractive developed markets. ReneSola expects more of such lucrative transactions in 2017 and beyond.

Of late, ReneSola has been focused on selling its utility-scale solar projects. In July, the company has sold a number of its solar projects in the UK. These include four operational, photovoltaic utility-scale projects in England to market-leading investor and fund manager Equitix Fund IV. The four assets have a total capacity of about 20 MW.

About ReneSola

This Zacks Rank #3 (Hold) company has been undergoing a series of changes, shifting ways from being a solar product manufacturer to a multi-faceted participant across the value chain.

ReneSola continues to benefit from a steady flow of contracts from both domestic and international customers. With the successful execution of the company’s downstream strategy, it remains focused on two potential international markets – the UK and Japan. It has 54 megawatts (MW) under construction in the UK, which will be completed and connected during 2016.

The company is also focused on monetizing its project portfolio while looking for opportunities to expand its pipeline across key markets. It expects to generate cash flow of about $100 million from the monetization of some of the projects in coming years.

Stocks to Consider

Sunrun Inc. (NASDAQ:RUN) , Vivint Solar, Inc. (NYSE:VSLR) and SolarCity Corp. (NASDAQ:SCTY) are a few better-ranked stocks in the solar industry.

Sunrun has witnessed a 4.8% rise in its stock price in the last trading session. On an average, the company has delivered a positive earnings surprise of 109.63% in the trailing four quarters. Sunrun sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vivint Solar, with a Zacks Rank #2 (Buy), has witnessed a 28.3% upside in its stock price over the past six months. On an average, the company has delivered a positive earnings surprise of 8.98% in the trailing four quarters.

SolarCity also carries a Zacks Rank #2. The company has witnessed an 8.1% rise in its stock price in the last five trading sessions. On an average, the company has delivered a positive earnings surprise of 1.10% in the trailing four quarters.

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