North Coast Solar Stocks

December 10, 2007

Energy Conversion Warmed By SunEdison

Filed under: ENER — Tags: , , , , — Jason @ 1:20 pm

Carl Gutierrez, 12.10.07, 1:20 PM ET

SunEdison is taking a crack at the flexible solar panels made by Energy Conversion Devices.

Shares of Energy Conversion, based in Rochester Hills, Mich., were up 8.8%, or $2.57, to $31.77 in morning-trading on Monday.

The rise came after the company announced it would supply SunEdison with solar laminates with up to 17 megawatts of annual generating capacity.

A one-megawatt plant running continuously at full capacity can power 778 households each year, according to the U.S. Department of Energy. Solar technology has lower capacity since its ability to generate power is limited by availability of the sun.

The companies did not disclose financial terms of the agreement, but Sun Edison will purchase at least 5 megawatts worth of products next year, with up to an additional 12 megawatts worth of laminates for use on large-scale rooftop installations for industrial and commercial buildings, mostly in the U.S.

Energy Conversion makes products for alternative energy generation, energy storage and information technology.

SunEdison is a solar energy service provider headquartered in Baltimore, Md.

“It wasn’t such a large announcement,” said CIBC World Markets analyst Adam Hinckley, “but it’s positive because SunEdison is one of the top installers in the country, and having them back your technology is definitely a positive.”

Energy Conversion’s solar laminates are unique in their field. Light-weight and frameless, they are literally bendable.

“Unlike the standard crystalline silicon solar panels,” Hinckley noted, “solar laminates can be made at any size by basically rolling it and laminating it to actual roofing material.”

Hinckley added that this deal alone will not necessarily increase Energy Conversion’s earnings, but still felt the rise in share price is warranted as the announcement is positive news.

Unlike much of the solar industry, Energy Conversion’s shares have not only have not soared, but have actually fallen 20.4% from $39.89 over the past year due manufacturing problems and cost over-runs.

The Associated Press contributed to this article

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