North Coast Solar Stocks

November 16, 2009

ReneSola Ltd Announces Third Quarter 2009 Results

Filed under: SOL — Tags: , , , , , , , — Jason @ 7:13 am

Company Achieves Record Quarterly Product Shipment Volume; Net Revenues Exceed Guidance

7:13 am EST, Monday November 16, 2009

JIASHAN, China, Nov. 16 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a vertically integrated Chinese manufacturer of solar power products, today announced its unaudited financial results for the third quarter ended September 30, 2009.

Third Quarter 2009 Financial and Operating Highlights
— Q3 2009 net revenues exceeded guidance and were US$140.9 million, an increase of 70.6% from US$82.6 million in Q2 2009.
— Total solar product shipments in Q3 2009 were a record 146.9 megawatts (“MW”), an increase of 71.0% from 85.9 MW in Q2 2009.
— The Company successfully completed the integration of Wuxi Jiacheng Solar Energy Technology Co. (“JC Solar”) following its acquisition on May 31, 2009. Approximately 11 MW of modules were shipped in Q3 2009 with a gross profit margin of over 20%.

                                Three months     Three months    Three months
                                    ended            ended          ended
                                September 30,      June 30,      September 30,
                                     2008             2009           2009
                                 (Unaudited)      (Unaudited)     (Unaudited)

    Product shipment (MW)              90.4             85.9           146.9
    Net revenue (US$000)            215,754           82,629         140,945
    Gross profit (US$000)            45,809            4,251           4,738
    Gross margin (%)                  21.2%             5.1%            3.4%
    Operating profit (loss)
     (US$000)                        36,888           (3,962)         (7,774)
    Profit (loss) for the
     period (US$000)                 32,385           (3,589)        (10,171)

 

“We witnessed a strong rebound in customer demand for our quality products in the third quarter of 2009 and reached a corporate landmark as ReneSola achieved the highest quarterly shipments of solar products in its history,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “The benefits of our strategic acquisition of JC Solar and evolution into an OEM based, vertically integrated solar manufacturer expedited with the recently announced acquisition of Dynamic Green Energy are allowing us to build upon our strong wafer manufacturing platform and deliver high quality, low cost products throughout the solar production value chain.”

Mr. Charles Bai, ReneSola’s chief financial officer, added, “We were pleased to see strong improvements in revenues and shipment volumes during the third quarter as we continue to witness strong customer demand and continue to gain market share globally. We are one quarter away from completely working through our high cost inventories. As such, we expect substantial margin improvements and a return to profitability in Q1 2010.”

Results for the Third Quarter of 2009

(more…)

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November 13, 2009

Solar power startup Ausra looks to sell itself

Filed under: FSLR, PCG, SOL, WFR — Tags: , , , , , — Jason @ 9:40 pm

Fri Nov 13, 2009 9:40pm EST

* Potential buyers are international conglomerates

* Deals in “aggressive level” of discussion

* Solar thermal start-up raised $130 mln in venture capital

By Laura Isensee

LOS ANGELES, Nov 13 (Reuters) – Kleiner Perkins and Khosla Ventures-backed solar thermal start-up Ausra Inc is in talks to sell itself with three potential buyers, two sources familiar with the company told Reuters on Friday.

The buyers could take a majority stake or snag the whole company and the discussions are at a “very aggressive level”, said one source familiar with the company, who was not authorized to discuss the matter publicly.

Both sources said the interested companies were global conglomerates in the power generation business but declined to name them. The companies already have various power products, such as steam and gas turbines, and are committed to renewable energy. One interested party has engaged with Ausra previously, one source said.

Ausra declined to comment.

A sale of the high profile Silicon Valley start-up that has raised $130 million in venture capital would add to a string of recent deals and growing consolidation in the solar power industry.

Chinese solar wafer manufacturer ReneSola Ltd (SOL) plans to buy Dynamic Green Energy Ltd while silicon maker MEMC Electronic Materials Inc (WFR) plans to acquire privately-held SunEdison, which installs, maintains and finances commercial solar systems.

Privately held Ausra, which is based in Mountain View, California, launched as a solar thermal developer in 2006, when solar power and other clean technology were luring venture capitalists.

Two years ago the company landed a power purchasing agreement with California utility PG&E, a unit of PG&E Corp (PCG) for a 117 megawatt solar thermal plant. Solar thermal plants use the sun’s rays to heat liquid to create steam, which drives turbines and generates electricity.

Earlier this year, the company switched tracks, saying it would move away from developing projects and focus on supplying large-scale solar steam generators.

This month Ausra said that it canceled its agreement with PG&E and sold the project’s land to the largest U.S. solar power company, thin film photovoltaic First Solar Inc (FSLR).

Ausra also has deals in Jordan and Australia and other investors include Starfish Ventures and KERN Partners.

One source familiar with the company said that “extensive work” has been done at various stages of completion with the interested buyers.

“We’re talking about meetings with dozens of people involved,” said the person, who also was not authorized to speak publicly about the discussions.

(Reporting by Laura Isensee; Editing Bernard Orr)

October 5, 2009

ReneSola Closes Follow-on Public Offering of 15,500,000 American Depositary Shares

Filed under: SOL — Tags: , , , — Jason @ 11:22 am

Monday October 5, 2009, 11:22 am EDT

JIASHAN, China, Oct. 5 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a vertically integrated Chinese manufacturer of solar power products, announced today that its follow- on public offering of 15,500,000 American depositary shares, or ADSs, each representing two shares of no par value in the Company, was closed on October 5, 2009. The Company received aggregate net proceeds of approximately $70.7 million, after deducting discounts and commissions but before offering expenses.

Credit Suisse Securities (USA) LLC and UBS AG acted as joint bookrunners for the offering, and Lazard Capital Markets LLC acted as a co-manager for the offering.

This offering is being made under ReneSola’s “shelf” registration statement on Form F-3 filed with the Securities and Exchange Commission on June 25, 2009. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Application has been made for the 31,000,000 new shares in the Company issued in the offering to be admitted to trading on AIM. It is expected that admission will take place on October 6, 2009.

Copies of the final prospectus supplement and the accompanying prospectus may be obtained by contacting Credit Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, New York 10010-3629, U.S.A., or by telephone at 1- 800-221-1037, or contacting UBS Investment Bank, Prospectus Department, 299 Park Avenue, New York, NY 10171, U.S.A., or by telephone at 1-877-827-6444 ext. 561-3884.

September 30, 2009

ReneSola Announces Pricing of Follow-on Public Offering of 15,500,000 American Depositary Shares

Filed under: SOL — Tags: , , , — Jason @ 9:37 am

Wednesday September 30, 2009, 9:37 am EDT

JIASHAN, China, Sept. 30 /PRNewswire-PRNAsia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a vertically integrated Chinese manufacturer of solar products, announced today that its follow-on public offering of 15,500,000 American depositary shares, or ADSs, each representing two shares of no par value in the Company, was priced at $4.75 per ADS. The offering is expected to close on October 5, 2009. ReneSola has granted the underwriters a 30-day option to purchase up to an additional 2,325,000 ADSs.

ReneSola intends to use the net proceeds from the offering for general corporate purposes, including capital expenditures, working capital, and repurchases and redemptions of its U.S. dollar settled 1% convertible bonds due 2012, of which $99.0 million in aggregate principal amount was outstanding as of June 30, 2009. ReneSola may repurchase its convertible bonds through tender offers, open market purchases, negotiated transactions or otherwise. The Company’s management will retain broad discretion over the use of proceeds, and the Company may ultimately use the proceeds for different purposes.

Credit Suisse Securities (USA) LLC and UBS AG are joint bookrunners for the offering, and Lazard Capital Markets LLC is a co-manager for the offering.

This offering is being made under ReneSola’s “shelf” registration statement on Form F-3 filed with the Securities and Exchange Commission on June 25, 2009. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Company’s registration statement on Form F-3 and preliminary prospectus supplement are available from the SEC website at: http://www.sec.gov.

Copies of the final prospectus supplement and the accompanying prospectus, when available, may be obtained by contacting Credit Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, New York 10010-3629, U.S.A., or by telephone at 1-800-221-1037, or contacting UBS Investment Bank, Prospectus Department, 299 Park Avenue, New York, NY 10171, U.S.A., or by telephone at 1- 877-827-6444 ext. 561-3884.

September 25, 2009

Watch Out: Solar Stocks Might Sink

Filed under: ENER, FSLR, JASO, LDK, SOL, SOLF, STP, YGE — Tags: , , , , , , — Jason @ 8:52 am

By James Altucher

As a financial adviser you have one goal: Don’t lose clients’ money. So even more important than finding stocks that could double or triple over the next year, you want to steer clear of stocks that could collapse.

It’s ugly, it’s painful, and nobody wants to call a client and point out an investment sank 90%.

Over the next two articles I’ll be analyzing a few stocks that fit this category. This is purely my view, of course, and I’d welcome anyone with differing views to use the comments section. (As I say in the comments section, I am not shorting these stocks.)

In general I don’t like the solar industry as an investment opportunity, which includes First Solar (FSLR), Energy Conversion Devices (ENER), JA Solar (JASO), LDK Solar Co. (LDK), Suntech Power (STP), Solarfun Power (SOLF), Yingli Green Energy (YGE), and Rene Sola (SOL).

First Solar, for instance, has been a glam stock for day traders for the past few years as the solar industry had almost as much hype behind it as the dot-com industry back in the heyday.

Let’s look at the macro picture and then the micro picture and you’ll see why this stock could go down 90%.

Macro picture:

Solar power is more expensive than other forms of power: coal, natural gas, nuclear, even wind, so the primary customer for all of the solar companies are the countries where solar power is subsidized with no cap on how high the subsidy could go.

In other words: Germany, which is the only such country. Spain tried it, but it was too expensive, so they began to cap the subsidy and as a result the solar industry is now one-fifth the size in Spain that it was when the subsidy was in place.

In fact, approximately 60% of First Solar’s revenue comes from sales to Germany.

(more…)

September 23, 2009

ReneSola Announces Follow-on Public Offering of 14,400,000 American Depositary Shares

Filed under: SOL — Tags: , , , — Jason @ 6:41 am

Wednesday September 23, 2009, 6:41 am EDT

JIASHAN, China, Sept. 23 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a vertically integrated Chinese manufacturer of solar products, today announced that it intends to offer, subject to market and other conditions, 14,400,000 American depositary shares (“ADSs”), each representing two ordinary shares of the Company. ReneSola intends to grant the underwriters an option to purchase up to an additional 2,160,000 ADSs.

ReneSola plans to use the net proceeds of the offering for general corporate purposes including capital expenditure, working capital and repurchases and redemptions of the Company’s U.S. dollar settled 1% convertible bonds due 2012. The Company’s management will retain broad discretion over the use of proceeds, and the Company may ultimately use the proceeds for different purposes than what it currently intends.

Credit Suisse Securities (USA) LLC, UBS AG and Lazard Capital Markets LLC will act as underwriters.

This offering will be made under ReneSola’s registration statement on Form F-3 filed with the Securities and Exchange Commission on June 25, 2009. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities and does not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Company’s registration statement on Form F-3 and preliminary prospectus supplement are available from the SEC website at http://www.sec.gov .

A copy of the prospectus relating to the offering may be obtained by contacting Credit Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, New York 10010-3629, or by telephone at 1-800-221-1037, from UBS AG at 52/F, International Finance Center, 8 Finance Street, Central, Hong Kong, or from Lazard Capital Markets LLC at 30 Rockefeller Plaza, New York, New York 10020.

ReneSola Updates Estimated Third Quarter and Full Year 2009 Results

Filed under: SOL — Tags: , , , — Jason @ 6:31 am

Wednesday September 23, 2009, 6:31 am EDT

JIASHAN, China, Sept. 23 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a vertically integrated Chinese manufacturer of solar products, today revised its 2009 revenue guidance, which was originally provided in the Company’s second quarter 2009 earnings release on August 12, 2009.

“Compared to our expectation in August, we are seeing an improvement in our operating performance, which reflects a steady rebound in the global solar marketplace,” said Xianshou Li, Chief Executive Officer of ReneSola. “However, the improvement in the price of solar products may take longer than anticipated. To be prudent, we are revising our revenue guidance for the full year 2009.”

The Company expects its third quarter 2009 revenue outlook to be in the range of US$130 million to US$140 million and expects its gross margin to be similar to that of its second quarter 2009.

The Company expects its full year revenue outlook for 2009 to be in the range of US$470 million to US$500 million and maintains its prior product shipment outlook for 2009 of 450 MW to 500 MW.

The above guidance is based on the Company’s current views with respect to operating and market conditions, which are subject to change. The Company’s actual results may differ from the guidance.

ReneSola Signs Share Purchase Agreement to Acquire Dynamic Green Energy

Filed under: SOL — Tags: , , , — Jason @ 6:21 am

Wednesday September 23, 2009, 6:21 am EDT

JIASHAN, China, Sept. 23 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a vertically integrated Chinese manufacturer of solar products, today announced that it has signed a share purchase agreement with Dynamic Green Energy Limited (“Dynamic Green”) and its shareholders to acquire 100% of the shares in Dynamic Green for 26,787,210 newly issued ReneSola ordinary shares and $10 million in the form of a convertible promissory note issued by ReneSola.

Dynamic Green, through its wholly-owned subsidiary Jiawei Solarchina Co., Ltd. and other Chinese operating subsidiaries, manufactures solar products ranging from ingots to photovoltaic (“PV”) modules and provides original equipment manufacturing (“OEM”) services for leading solar manufacturers. Dynamic Green provides customers with high quality products and processing services, utilizing raw materials sourced or produced by Dynamic Green or supplied by customers. Dynamic Green owns and operates several manufacturing facilities in different cities in China, including ingot and wafer manufacturing facilities in Sanhe, Hebei province, an upgraded metallurgical grade silicon manufacturing facility in Guiyang, Guizhou province, module and cell manufacturing facilities in Wuhan, Hubei province, and OEM facilities in Shenzhen, Guangdong province.

Dynamic Green provides a substantial amount of sales and OEM services, particularly sales and services to its major customers such as Evergreen Solar, Inc. and SunPower Corporation, under multi-year, long-term contracts. The long-term contracts for OEM services require Dynamic Green to provide a range of processing services, including processing of ingots and solar wafers as well as PV cells and modules. Dynamic Green intends to continue to perform under these contracts after the acquisition.

“ReneSola’s acquisition of Dynamic Green will significantly increase our OEM capabilities and will accelerate the implementation of our strategy to become a fully integrated solar company,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “The acquisition will enhance our competitiveness by enhancing our product quality, provide cost synergies and expand our strategic relationships with global key industry players. We believe the strategic benefits of uniting two highly complementary companies will create additional shareholder value through earnings accretion and access to new growth opportunities.”

“Dynamic Green is excited to join forces with ReneSola,” said Mr. Kongxian Ding, Dynamic Green’s chairman and chief executive officer. “The synergies created by the two businesses will allow us to better serve and expand our existing global customer base and provide immediate opportunities to leverage efficiencies and drive innovation for future growth.”

Mr. Mark Chen, senior managing director at GE Capital Asia Pacific, Dynamic Green’s second largest investor, commented, “As a strategic investor, we believe the combination of these two leading players in the solar energy space will create a stronger platform to capture even more growth opportunities. The powerful merger synergies will also ultimately benefit customers and shareholders for the enlarged company.”

Mr. Richard M. Feldt, Evergreen Solar’s chairman, president and chief executive officer, added, “We are supportive of this acquisition. Being a leader in the fast growing and increasingly competitive solar products industry requires a commitment to leverage varied technological competencies and manufacturing excellence expertise to provide low-cost products that also meet our customers’ exacting performance standards. ReneSola, Dynamic Green and Evergreen Solar have these requisite skills and a common vision to benefit from the significant market opportunities available to us over the next several years.”

Mr. Jay Peir, SunPower’s vice president of corporate development, added, “Jiawei has been a key long standing partner to SunPower since 2004. This relationship has enabled us to combine market leading technology with high quality, low cost manufacturing. We believe this acquisition will result in a stronger partner with the ability to grow and meet our continuing needs.”

As of June 30, 2009, Dynamic Green had an annual PV module manufacturing capacity of approximately 155 megawatts (“MW”), an annual PV cell manufacturing capacity of 25 MW and annual ingot and solar wafer manufacturing capacities of approximately 180 tons, or 37.5 MW, and approximately 360 tons, or 75 MW, respectively. As of the same date, Dynamic Green had an annual upgraded metallurgical silicon manufacturing capacity of 50 tons. Dynamic Green has approximately 1,600 employees.

In 2007 and 2008, Dynamic Green had net revenues of $18.1 million and $53.3 million, respectively, and gross profit of $6.1 million and 16.8 million, respectively. Dynamic Green had loss from operations of $9.6 million in 2007 (including $14 million in share based compensation expenses) and income from operations of $9.9 million in 2008. Dynamic Green had a net loss of $10.4 million in 2007 and net income of $5.6 million in 2008. In the first half of 2009, Dynamic Green estimates that it had net revenues of approximately $15 million and gross profit of approximately $3 million. Dynamic Green expects to incur a net loss in the first half of 2009. The selected estimated results for the first half of 2009 are preliminary and subject to normal period-end closing procedures. As a result, Dynamic Green’s actual results may differ from the estimated results.

The acquisition and the share purchase agreement have been approved by both companies’ boards of directors. At closing, ReneSola will enter into a shareholders’ agreement, a registration rights agreement and lock-up agreements with certain Dynamic Green selling shareholders and amendments to employment agreements and non-compete agreements with Dynamic Green’s senior management. Under the shareholders agreement, Mr. Kongxian Ding will have the right to appoint two members to ReneSola’s board of directors, one of whom must be an independent director.

Mr. Kongxian Ding, the founder and the largest shareholder of Dynamic Green, will be subject to a three-year lock-up and Dynamic Green’s other management shareholders and certain non-management shareholders will be subject to one-year lock-ups starting from the closing date, subject to certain exceptions (including the ability of certain shareholders to sell limited amounts of shares commencing on the date that is 181 days following the closing date). Other non-management shareholders will be subject to a three-month or six-month lock-up starting from the closing date, subject to certain exceptions (including, in the case of the six-month lockup, the ability of certain shareholders to sell limited amounts of shares commencing on the date that is 91 days following the closing date). The holder of the $10 million convertible promissory note will not be permitted to sell or convert its note for approximately 11 months following the issuance date, subject to certain exceptions.

About Dynamic Green Energy

Dynamic Green Energy Limited (“Dynamic Green”), through its wholly-owned subsidiary Jiawei Solarchina Co., Ltd., is a pioneering photovoltaic solar products manufacturer in China and a fully integrated manufacturer of solar products serving OEM and ODM customers around the world. Dynamic Green offers its world-class customer-base high-performance solar products for a broad range of applications, including off-grid and on-grid applications for residential and commercial end-users. Dynamic Green is dedicated to providing its customers with innovation, manufacturing excellence and superior product quality. For more information about Dynamic Green and its wholly-owned subsidiary, Jiawei Solarchina Co., Ltd., please visit http://www.solarchina.com.hk .

September 4, 2009

Solar crisis set to hit in 2010

Filed under: ENER, JASO, LDK, SOL, SOPW, YGE — Tags: , , , , — Jason @ 10:00 am

50% of manufacturers may not survive, says The Information Network

Michael McManus, DIGITIMES, Taipei [Friday 4 September 2009]

The solar industry is at a critical stage and 50% of existing solar manufacturers may not survive 2010, according to The Information Network.

The market research firm recently noted massive inventory buildup and huge overcapacity were having a serious impact on the solar panel industry and manufacturers, and Dr. Robert Castellano, president of The Information Network has now pointed out that inventory is averaging 122 days in 2009 versus 71 days in 2008. Capacity utilization dropped to 27.9% in 2009 from 48.0% in 2008.

A key reason is increased supply from China, which added an additional 1GW of capacity. The price per watt has now dropped to US$1.80 for polysilicon-based products, which is lower than the US$1.85 level The Information Network previously thought the industry would see at the end of 2009. By way of comparison, the average selling price in the third quarter of 2008 was US$4.05 per watt.

The Information Network doesn’t expect other industry players to back down from increased competition from China. Other makers are expected to increase their capacities despite the low utilization rates in order to reach economies of scale and better compete against the Chinese. The market research firm expects the industry to see a 25.7% capacity utilization rate and 133 days inventory in 2010.

Average selling prices could drop below US$1 per watt in 2010 and US$0.50 in 2011. As many as 50% of the more than 200 solar manufacturers, mired in red ink with current selling prices above US$2.00 per watt, may not survive, The Information Network stated.

Solar panel manufacturers that have reported loses just in the past few weeks include Energy Conversion Devices (ENER), JA Solar (JASO), LDK Solar (LDK), Q-Cells, ReneSola (SOL), Solar Power (SOPW), and Yingli Green Energy Holding (YGE).

The Information Network: Planned global solar capacity increases, 2008-2010
Item 2008 2009 2010
Solar consumption (MW) 5,625 4,894 6,215
Solar capacity (MW) 11,722 17,551 24,212
Utilization 48.0% 27.9% 25.7%
Inventory days 71 122 133

Source: The Information Network, compiled by Digitimes, September 2009

August 31, 2009

Chinese Solar Stocks Slide After Big Shanghai Tumble

Filed under: CSIQ, CSUN, JASO, LDK, SOL, STP, YGE — Tags: , , — Jason @ 11:31 am

Posted by Eric Savitz
barrons.com

Shares of China-based solar stocks are down across the board today after the Shanghai stock market fell 6.7% overnight on fears that the country’s economic growth could slow due to a slowdown in lending growth. Acording to Bloomberg, former Morgan Stanley Asian economist Andy Xie said the China market could drop another 25%, on top of a 22% slide in August.

Among the China-based solar names:

* JA Solar (JASO) is down 14 cents, or 3.9%, to $3.48.
* LDK Solar (LDK) is down 32 cents, or 3.5%, to $8.92.
* China Sunergy (CSUN) is down 29 cents, or 6.3%, to $4.29.
* Suntech (STP) is down 78 cents, or 5.2%, to $14.27.
* Canadian Solar (CSIQ) is down 60 cents, or 4%, to $14.59.
* Yingli Green Energy (YGE) is down 46 cents, or 4.2%, to $10.56.
* ReneSola (SOL) is down 9 cents, or 1.6%, to $5.64.

August 27, 2009

Ban on scrap polysilicon to boost China solar sector

Filed under: LDK, SOL, WFR, YGE — Tags: , , , , , — Jason @ 5:40 am

Thu Aug 27, 2009 5:40am EDT

By Leonora Walet, Asia Green Investment Correspondent

HONG KONG, Aug 27 (Reuters) – A Chinese ban on imports of a waste material used for solar wafers may be bad news for foreign competitors but it is a big boost to China’s solar sector.

Scrap polysilicon, which can be reused to make solar wafers, is low-grade silicon that fails to meet the grade for chips found in most electronics.

Beginning this month, China stopped accepting scrap polysilicon to comply with environmental regulations.

The ban threatens the income of Chinese scrap polysilicon traders and limits the market for companies that sell to them, such as top contract chipmaker TSMC. It is particularly harsh for small and new domestic solar players who rely on the cheap material to make wafers and panels.

For China’s polysilicon companies, including GCL-Poly Energy Holdings and LDK Solar (LDK), the ban is an opportunity to expand business. For foreign rivals South Korean OCI Co Ltd, MEMC Electronic Materials Inc (WFR) or Japan’s Tokuyama Corp the ban is a potential threat.

China produces over 60 percent of the world’s solar panels, and is among the heaviest users of pure polysilicon and the scrap variety. Scrap polysilicon accounts for up to 30 percent of silicon fed into some of the solar wafers and panels in China.

“In a way, the ruling was designed to protect (China’s) very young polysilicon industry,” said KK Chan, chief executive of private equity firm Nature Elements Capital. “The sector needs all the help it can get given a supply glut of the material.”

The ban comes at a time when Chinese polysilicon companies are ramping up production, despite an oversupply of the key solar component.

GCL-Poly, which acquired $3.4 billion worth of solar assets in June, is on track to produce about 3,000 tonnes of polysilicon by year end. LDK Solar aims to produce 5,000 tonnes by 2010.

Yingli Green Energy Holding Co (YGE), ReneSola (SOL) and Tongwei Co should benefit.

After the credit crunch dried up funding for solar projects, the sector was hit by a massive oversupply of polysilicon. Prices fell to $69 per kilogram from its peak of $400 in 2008.

ENVIRONMENTAL FACTOR

China’s Environmental Protection Ministry said it imposed the ban because the heavy chemicals that come in contact with scrap polysilicon when reused to make solar wafers and panels produce waste that could harm the environment.

The ministry said in a notice posted on its website last month that the regulation was imposed in line with China’s solid waste pollution laws.

A ministry spokesman declined to comment.

“This is positive for China’s polysilicon sector, and the environment,” said GCL-Poly president Hunter Jiang.

The new rule is slowly having a positive impact for local makers of the solar component. Spot prices of polysilicon in China rose to $72 per kg in August from $67 in July weeks after the rule was enforced, said New Energy Finance analyst Julia Wu.

“The segment most likely affected by the policy are local panel and wafer makers, especially the smaller ones,” Wu said.

Established Chinese solar wafer companies are least affected.

“It should not have an impact, given there is sufficient supply of polysilicon in the market,” said Renesola chief finanical officer Charles Bai.

(Additional reporting by David Stanway in Beijing and Suilee Wee in Hong Kong; Editing by Chris Lewis)

August 25, 2009

Solar stocks pressured by sales price of panels

Filed under: ENER, FSLR, JASO, SOL, TSL — Tags: , , , , , — Jason @ 9:21 am

Analyst says solar industry faces rising pressure from falling solar panel prices, demand

Tuesday August 25, 2009, 9:21 am EDT

NEW YORK (AP) — Solar panel prices and demand for solar modules will likely decline in the coming quarters, which will lead to a slowdown in production capacity and the overall solar industry said an analyst on Tuesday.

Credit Suisse analyst Satya Kumar said he expects panel prices to decline to $1.50 per watt by the second quarter of 2010, down from $2.35 per watt in the second quarter of 2009. At this lower level, and with polysilicon prices around $50 per kilogram on long term contracts, he expects manufacturing capacity to pull back. Polysilicon is a key raw material used in the production of solar cells.

In the near term, Kumar said he prefers Trina Solar Ltd. (TSL) and Renesola Ltd. (SOL) given their cheap shares and competitive cost structures. Also, Kumar believes these companies will benefit from China’s new feed-in tariff, which will pay for electricity generated by renewable resources. Kumar expects the Chinese government to introduce the tariff in the near future. Kumar rates Trina Solar and ReneSola “Outperform.”

Shares of Trina Solar rose 68 cents, or 2.6 percent, to $26.99 in premarket trading. Renesola shares climbed 24 cents, or 4.5 percent, to $5.53 before the opening bell.

Elsewhere in the industry, Kumar rates Energy Conversion Devices (ENER), First Solar Inc. (FSLR) and JA Solar Holdings Co. Ltd. (JASO) “Neutral.” Shares of Energy Conversion Devices fell 24 cents, or 1.9 percent, to $12.20; First Solar shares rose 82 cents to $124.90 and JA Solar shares increased 3 cents to $3.85 before the opening bell.

China proposes guaranteed renewables market-Xinhua

Filed under: SOL, STP, TSL — Tags: , , , , — Jason @ 1:32 am

Tue Aug 25, 2009 1:32am EDT

BEIJING, Aug 25 (Reuters) – Chinese lawmakers have proposed draft legislation that would establish state guarantees for the purchase of renewable energy production, Xinhua reported late on Monday.

The draft amendment to China’s Renewable Energy Law, would, if approved, guarantee the direct purchase by the central government of an annual minimum of renewable energy for the state electricity grid, according to the Xinhua report issued The report did not provide any timetable or details for the legislation.

China is preparing a renewable energy stimulus package, and plans to raise the proportion of renewable energy to 15 percent of total energy consumption by 2020.

Currently, the buying of energy from renewable sources is left to state grids to negotiate with power producers.

The guarantees should benefit renewable energy companies including Suntech Power (STP), Trina Solar (TSL) and ReneSola (SOL). Wind firms Sinovel Wind, Goldwind Science and Technology and Dongfang Electric would also be potential beneficiaries.

The announcement comes after the news agency reported that lawmakers were discussing a new fund to develop renewable energy technologies.

The fund would be financed in part by surcharges levied on renewable energy prices, and would be used to support scientific and technological research, it said.

China’s renewable energy stimulus package is expected to raise its solar power generation target for 2020 at least fivefold, although it will remain a much smaller player in China’s power mix than wind and nuclear sources. ($=6.83 yuan)

(Reporting by Kirby Chien; Editing by Chris Lewis and Lincoln Feast)

August 20, 2009

ReneSola wins $706 mln China solar power plant deal

Filed under: SOL — Tags: , , , , , — Jason @ 11:32 am

Thu Aug 20, 2009 11:32am EDT

* Shares jump as much as 23 percent

* CEO sees opportunities for significant new revenue streams

* China seen moving from solar products maker to end user

* UK’s Blair says China committed on climate change

By Paul Adrian Raymond and David Stanway

LONDON/BEIJING, Aug 20 (Reuters) – Chinese solar wafer manufacturer ReneSola (SOL) won exclusive rights to develop a $706 million, 150-megawatt solar power plant in northern China, sending its share price sharply higher.

The project, awarded by the Taiyangshan Development Zone near the city of Wuzhong, is subject to a feasibility study and government approval. The company expects to begin work on the four-year project in the Ningxia Hui Autonomous Region in 2010.

Winning the contract to develop the plant, whose 150 MW capacity equates to some of the larger wind farms operating in Europe and the United States, fits the company’s strategy of branching out from its core business of solar wafer production.

“Our plan for domestic solar construction is we want to partner with large international solar companies,” Chief Executive Xiahshou Li told Reuters. “We want to base our relationship on introducing them to the (Chinese) market, partnering them and having them provide part of the financing.”

China’s move from simply manufacturing solar products for export towards using them to generate electricity domestically presented an opportunity for new revenue streams, Li added.

His comments came as former British Prime Minister Tony Blair said, following a meeting with Chinese Premier Wen Jiabao on Thursday, that the country appeared committed to taking stronger steps to contain greenhouse emissions.

(more…)

ReneSola Signs Letter of Intent with Wuzhong Government to Develop 150 MW On- grid Solar Power Project

Filed under: SOL — Tags: , , — Jason @ 3:00 am

Thursday August 20, 2009, 3:00 am EDT

JIASHAN, China, Aug. 20 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a leading vertically integrated Chinese manufacturer of solar products, today announced it has been granted the exclusive right in a letter of intent with the Taiyangshan Development Zone in Wuzhong city, Ningxia Hui Autonomous Region, to develop a 150 megawatt (“MW”) on-grid solar power project with a budgeted total investment of RMB 4.8 billion (approximately US$ 706 million). The project, which is subject to a feasibility study and government permits and approvals, has a four-year, four-phase construction period that is expected to begin in 2010.

“We are pleased to announce our new 150 MW on-grid solar project in Wuzhong, which adds to our track record of partnering with local governments to develop sustainable solar projects,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “Our vertically integrated solar manufacturing capabilities continue to position us to capture opportunities presented by the government’s increased focus on establishing alternative energy sources.”

Mr. Li added, “We are excited by China’s transformation from a manufacturing hub of solar products into an important and increasingly significant end-user market. The emergence of downstream projects in the domestic market represents a significant opportunity for ReneSola to create new revenue streams and expand local market share. The 150 MW on-grid solar project in Wuzhong bolsters our downstream project portfolio as we strengthen our position as one of the leading vertically integrated solar companies in China. The Ningxia Hui Autonomous Region is one of the sunniest regions in China, and this project is strategically located to fully take advantage of the abundance of natural sunlight in the local area.”

August 13, 2009

Why the Gloom on Solar-Energy Stocks?

Filed under: CSIQ, FSLR, JASO, LDK, SOL, SPWR, STP, TSL, YGE — Tags: , , , , , , — Jason @ 8:28 pm

Solar-power equipment makers’ profits have been hit by the credit crunch and the glut of a key raw material

By David Bogoslaw

The global credit freeze and a supply glut of polysilicon—the key raw material used in photovoltaic solar panels—have hurt solar-power equipment manufacturers’ earnings this year. Over the long run, some analysts are hopeful the lower prices will make the technology more competitive with conventionally generated power and make these companies more compelling plays in the eyes of investors. But the road to solar riches remains bumpy.

Case in point: On Aug. 12, China-based LDK Solar (LDK) reported a second-quarter loss of $2.03 per American Depository Share (ADS) on a 48% drop in revenue, to $228.3 million, compared with a profit of $1.29 per ADS a year ago on $441.7 million in revenue. A writedown of $176.3 million on a plunge in value of its inventories accounted for most of the $216.9 million quarterly loss.

LDK, which makes multicrystalline wafers used in solar panels, also issued a third-quarter revenue outlook well below Wall Street expectations, sending its ADSs down 18% on Aug. 13.

Major Shifts in Market Share

LDK’s results came on the heels of two other Chinese solar companies that disappointed the market on Aug. 12. Wafer producer ReneSola (SOL) posted a loss of 3¢ per ADS, vs. earnings of 19¢ a year ago, on a 52% drop in revenue, to $82.6 million. The company’s bottom-line results beat the market’s consensus estimate of a 6¢ loss but missed analysts’ forecast of $90 million in revenue.

Meanwhile, solar-cell maker JA Solar (JASO) recorded a loss of 18¢ per ADS, missing analysts’ estimates by 12¢. That compared with a 1¢ loss in the second quarter of 2008, while revenue fell more than 51%, to $88 million. The latest loss included charges related to stock-based compensation and a hedging loss.

The move from shortage to oversupply of polysilicon in just around 18 months has caused a major shift in business models and market share. Panel manufacturers that locked in fixed-price contracts for polysilicon, which gave them an edge over producers that had to pay much higher prices in the spot market, now have to scramble to renegotiate contracts at lower prices or write down the value of their inventories.

(more…)

Solar: More Trouble Looms Ahead, Barclays Warns

Filed under: CSIQ, FSLR, JASO, LDK, SOL, SPWR, STP, WFR, YGE — Tags: , , , , , — Jason @ 11:22 am

Posted by Eric Savitz
barrons.com

The troubles for the solar sector are far from over, Barclays Capital analyst Vishal Shah warned this morning.

Formerly bullish on the group as a whole, Shah today reduced his sector rating on solar to Neutral. Shah says the Q2 weakness in solar company results represents a “secular, not seasonal decline.”

Pricing pressure, he contends, is intensifying. Shah says checks find Q4 module ASPs from Chinese companies could drop to $1.80/watt, worse than the $2/watt he had previously been expecting. “Given the overly optimistic demand outlook of most Chinese solar players and expectations of continued production ramps, we see additional downside risk to module pricing exiting 2009,” he adds. “More importantly, we expect 2010 module ASPs to decline by 25%-30%.”

At the same time, Shah warns that the supply/demand outlook is deteriorating, rather than improving. “We expect U.S. demand to pick-up at a slower pace relative to prior expectations and see potential downside risk to inflated demand expectations in China,” he writes. “Moreover, our updated supply outlook suggests that industry over-supply could persist in [the 2010 second half] until production capacity reductions occur at a rapid pace across the industry.”

For the Chinese solar stocks, he warns, earnings risk is to the downside. “Market share gains and not profitability is the motive for most Chinese solar companies – given the inflated opex/interest cost structures, operating break-even levels of companies continue to increase and as such we expect companies to continue to produce even as overall profitability levels deteriorate.” As for the U.S. solar players, he says the outlook is “mixed at best,” given a pick-up which he thinks will be slower than expected.

Finally, raising a potentially huge problem for the solar industry, he wonders whether the current German feed-in tariff level is sustainable, given significant volume growth in 2009 and the potential for further acceleration in 2010, and the impact of the trend on rate-payers in the difficult economic environment. He adds that significant module price declines and attractive project economics “may prompt policy makers to reconsider generous FIT levels.”

Shah’s comments follow earnings disappointments yesterday from JA Solar (JASO), ReneSola (SOL) and LDK Solar (LDK), The reports spurred a number of rating changes this morning:

* Shah cut JASO to Equal Weight from Overweight, trimming his price target to $4, from $5.
* On SOL, there was a split decision. Piper Jaffray analyst Jesse Pichel cut his rating to Underweight from Neutral, with a new price target of $4, down from $6.50. But Creidit Suisse analyst Satya Kumar upgraded the stock to Outperform from Neutral, with a target price of $7.50, up from $3.80.

In today’s trading:

* JA Solar is down 20 cents, or 4.5%, to $4.27.
* LDK Solar is down $1.66, or 14.8%, to $9.55.
* ReneSola is up 22 cents, or 4.1%, to $5.58.
* SunPower (SPWRA, SPWRB) is off 38 cents, or 1.3%, to $28.38.
* Suntech (STP) is down 67 cents, or 3.7%, to $17.68.
* First Solar (FSLR) is up $2.15, or 1.5%, to $147.14.
* MEMC Electronic Materials (WFR) is up 9 cents, or 0.5%, to $16.89.
* Canadian Solar (CSIQ) is off 22 cents, or 1.2%, to $18.12.
* Yingli Green Energy (YGE) is down $1.08, or 8%, to $12.38.

August 12, 2009

ReneSola Ltd Announces Second Quarter 2009 Results

Filed under: SOL — Tags: , , , , , , , — Jason @ 7:41 am

Wednesday August 12, 2009, 7:41 am EDT

JIASHAN, China, Aug. 12 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a leading vertically integrated Chinese manufacturer of solar products, today announced its unaudited financial results for the second quarter ended June 30, 2009.

Recent Operating Highlights

— According to schedule, ReneSola commenced production of the first batch of polysilicon from Phase 1 of its two-phase, 3,000 metric tonne (“MT”) annualized capacity polysilicon manufacturing facility in China’s Sichuan province in July 2009. Production in 2009 is expected to be in the range of 400 MT to 500 MT, while production for 2010 is expected to be in the range of 2,800 MT to 2,900 MT.

— ReneSola successfully completed the acquisition of Wuxi Jiacheng Solar Energy Technology Co. (“JC Solar”), on May 31, 2009. In June 2009, JC Solar shipped 2.7 megawatts (“MW”) of modules and recorded gross margin of over 30%.

— Recently, ReneSola further enhanced its liquidity by increasing its total onshore bank credit lines to US$634 million, with an additional US$133 million in credit lines expected from Bank of China.

Results for the Second Quarter of 2009

Product Shipment

Total solar product shipment in Q2 2009 was 85.9 MW, consisting of 83.2 MW from wafer shipments and 2.7 MW from module shipments.

Net Revenues

Net revenues for Q2 2009 were US$82.6 million, a decrease of 22.7% sequentially and 52.2% year-over-year.

Gross Profit (Loss)

Gross profit for Q2 2009 was US$4.3 million, compared to gross loss of US$51.1 million in Q1 2009(1) and gross profit of US$42.8 million in Q2 2008. Gross margin for Q2 2009 was 5.1%, compared to negative 47.8% for Q1 2009 and positive 24.7% for Q2 2008.

Operating Profit (Loss)

Operating loss for Q2 2009 was US$4.0 million, compared to an operating loss of US$58.3 million for Q1 2009(1). Operating margin for Q2 2009 was negative 4.8%, compared to negative 54.6% for Q1 2009(1). Total operating expenses for Q2 2009 were US$8.2 million, an increase from US$7.3 million for Q1 2009, mainly due to the US$0.78 million amortization of intangible assets consisting of customer relations and order backlog from the JC Solar acquisition.

Earnings (Loss) Before Income Tax

Loss before income tax for Q2 2009 was US$2.9 million, compared to a loss of US$62.8 million for Q1 2009(1). The Company recognized a net gain of US$5.4 million as a result of its US$40.1 million convertible bond repurchase using cash and issuance of 4,000,000 ordinary shares during the quarter.

(more…)

August 11, 2009

JASO, SOL, LDK Reports Make Tomorrow Key For Solars

Filed under: JASO, LDK, SOL — Tags: , , , , — Jason @ 3:30 pm

Posted by Eric Savitz
barrons.com

Tomorrow, the solar sector will receive a flurry of earnings reports, with June quarter results due before the open from JA Solar (JASO) and ReneSola (SOL), and LDK Solar (LDK) expected to report after the closing bell. All three stocks are trading modestly lower on Tuesday.

Barclays Capital analyst Vishal Shah writes in a research note today that he maintains his cautious stance on the sector heading into tomorrow’s reports. He contends that expectations are high, and that there is downside risk to shipment and margin guidance for some Chinese solar players. He says Q3 is likely to be the peak quarter for industry shipments, and that pricing pressure could intensify as the Chinese module manufacturers aggressively price product to move large volumes and gain market share.

* For JA Solar, he sees Q2 revenue of $52 million and a loss of 6 cents a share, which is well below the Street consensus at $78 million and a loss of 5 cents.
* For ReneSola, he sees Q2 revenue of $89 million and a loss of 8 cents; consensus is $90 million and a loss of 6 cents.
* For LDK, he sees Q2 revenue of $230 million and a loss of $1.77 a share; the consensus view is $236 million and a loss of 91 cents.

July 29, 2009

ReneSola Celebrates Official Grand Opening of 3,000 MT Polysilicon Manufacturing Facility in Sichuan Province

Filed under: SOL — Tags: , , , — Jason @ 12:07 pm

Wednesday July 29, 2009, 12:07 pm EDT

JIASHAN, China, July 29 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a leading global manufacturer of solar wafers, today held a ceremony to celebrate the official grand opening of its 3,000 metric tonne (“MT”) polysilicon manufacturing facility and the successful output of the first batch of polysilicon from Phase 1 of the plant in Meishan city, Sichuan province, China. Among those attending the ceremony were executives from the Company including CEO Mr. Xianshou Li and CFO Mr. Charles Bai, local and provincial government officials from Sichuan, Zhejiang and Jiangsu provinces, regions in which ReneSola maintains operations, representatives from local and domestic national banks, as well as management from over 50 local and solar related companies.

“The opening of our Sichuan polysilicon manufacturing plant and successful production of our first batch of quality polysilicon on July 23rd are great milestones for ReneSola,” commented Mr. Xianshou Li, ReneSola’s chief executive officer. “These accomplishments mark the evolution of ReneSola from one of the world’s largest solar wafer manufacturers into a leading, low-cost, fully integrated global solar company. We are grateful for the support we have received from our local and national partners, clients and employees throughout the construction and testing processes, and we are proud of our management team for once again demonstrating its strong execution capabilities. We look forward to receiving a smooth supply of low-cost polysilicon from our new plant, which will significantly enhance our position as one of the leading low-cost solar companies globally.”

As previously announced, the Company successfully commenced trial production on the first batch of polysilicon from Phase 1 of its two-phase, 3,000 MT annualized capacity polysilicon manufacturing plant in mid-July. Phase 2 is expected to reach mechanical completion in September 2009. ReneSola’s Sichuan polysilicon manufacturing facility utilizes a close-loop Advanced Siemens Process for polysilicon production.

July 28, 2009

China’s Solar Ambitions Heat Up

Filed under: CSUN, JASO, SOL, STP, YGE — Tags: , , , , — Jason @ 1:14 pm

By Aaron Levitt

China is becoming a solar leader by expanding its programs in the area. The nation recently announced its Golden Sun Stimulus Package, with the goal of installing 500 megawatts of solar farms across the country in the next two to three years. Through the Chinese Ministry of Finance, the government would subsidize 50% of the costs of building a solar power project, including transmission and distribution costs. The subsidy would increase to 70% for solar farms in remote areas without connections to the grid. This latest round of subsidies for solar continues China’s commitment to generation targets of 10 gigawatts by 2020. Analysts predict that nearly two gigawatts of new production could be added to the grid by 2011. In March, the Ministry offered a program to subsidize rooftop and building-integrated solar power projects with as much as 20 Chinese yuan per watt.

To qualify for the estimated $10 billion in aid, the projects must have a generating capacity of at least 300 kilowatts, with construction being completed in one year and operations lasting at least 20 years. In addition, each province can only have a total of 20 subsidized projects. The Golden Sun plan comes at a perfect time, as China tries to reduce its rapidly expanding demand for imported oil and gas and reduce its carbon footprint. The plan is meant to develop the solar industry as a new source of economic growth.

A Few Shining Picks

Beijing gave no indication that the Golden Sun project would benefit Chinese-only solar firms. However, the European Chamber of Commerce’s China branch has received complaints about China’s recent massive economic stimulus plan. It cited that European wind turbine producers were shut out of the $5 billion earmarked for Chinese wind projects. With that in mind, it is probably best to stick to Chinese solar companies if you want to play the Golden Sun project.

Recently, both ReneSola (SOL) and Suntech Power (STP) inked deals ahead of the Ministry’s announcement to provide 2.3 gigawatts for provincial and city governments for 2009/2010. Additional deals should continue to flow as the plan unfolds.

Yingli Green Energy (YGE) is one of the largest producers of photovoltaic (PV) products in China. As one of the few vertically integrated Chinese solar companies, Yingli has the ability to produce the wafers, cells and modules, and then apply them to create sun farms. As such, the company should be eligible for a number of subsidies. The company recently announced a joint venture with SDIC Huajing Power Holding Co. to produce a 10 megawatt, on-grid solar farm in Dunhuang, Gansu Province.

JA Solar Holdings (JASO) and China Sunergy (CSUN) offer investors a way to play the manufacturing of PV cells, step three in the solar value chain. Like any semiconductor product, PV cells go through periods of oversupply. Thanks to oil’s rise to $150, which was followed by the current economic downturn, there is a glut of supply. However, the cells are a pivotal piece of the solar pie and have a high barrier to entry; they should provide nice returns once the world’s economies return to “normal”.

Bottom Line
With the Golden Sun Solar plan, China has made it very clear that it intends to be a worldwide solar leader. As the projects begin to take shape, the Chinese will gain valuable energy and well as economic benefits. One of the main growth stories within the solar sector has always been China and this plan is the first step toward that. Until the full details of the plan are known, investors who want to play the stimulus plan should stick to Chinese solar stocks. The picks we’ve examined here are good entry points into that market.

July 21, 2009

Adding back a few more for the China subsidy play

Filed under: CSUN, JASO, SOL, YGE — Tags: , — Jason @ 9:00 am

CSUN – China Sunergy Co. Ltd. $4.32

JASO – JA Solar Holdings, Co., Ltd. $4.56

SOL – ReneSola Ltd. $5.36

YGE – Yingli Green Energy Holding Co. Ltd. $11.40

July 16, 2009

ReneSola Signs Letters of Intent to Develop 500 MW On-grid Power Generation Project and 5 MW Rooftop Project

Filed under: SOL — Tags: , , — Jason @ 1:17 pm

Thursday July 16, 2009, 1:17 pm EDT

JIASHAN, China, July 16 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a leading global manufacturer of solar wafers, today announced that it has entered into a letter of intent with the Yancheng city government, Jiangsu province, to develop a 500 megawatt (“MW”) on-grid solar power generation project. In addition, the Company has been granted the exclusive right in a letter of intent with the Panzhihua east district government, Sichuan province, to develop a 5 MW rooftop project. Both projects are subject to feasibility studies and approvals by various government authorities.

“We are delighted to announce the addition of these new projects to our downstream solar project portfolio,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “The 500 MW solar project in neighboring Jiangsu province is set to become one of the largest of its kind so far in China. A project of this magnitude will showcase ReneSola’s expertise in utility-scale solar applications and help raise our profile in the downstream space as we position ourselves to benefit from the government’s enhanced focus on renewable energy.”

500 MW On-grid Power Generation Project

According to the letter of intent entered into with the Yancheng city government, ReneSola will develop a 500 MW on-grid power generation project in Jiangsu province, China. The project will consist of mainly ground-mounted system applications and 10 MW of rooftop installations to be built over a 6 year period.

5 MW Panzhihua Project

According to the letter of intent entered into with the Panzhihua east district government, ReneSola will develop a rooftop project of no less than 600,000 square meters for new or existing government buildings, with installed capacity planned to reach 5 MW.

July 14, 2009

ReneSola Launches Phase 1 Trial Production at its 3,000 MT Polysilicon Manufacturing Facility

Filed under: SOL — Tags: , , , , — Jason @ 4:03 am

Tuesday July 14, 2009, 4:03 am EDT

JIASHAN, China, July 14 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a leading global manufacturer of solar wafers, today announced that it has successfully commenced trial production on the first batch of polysilicon from Phase 1 of its two-phase, 3,000 metric tonne (“MT”) annualized capacity polysilicon manufacturing facility located in China’s Sichuan province.

“The launch of our in-house polysilicon manufacturing facility represents another exciting strategic milestone for ReneSola,” commented Mr. Xianshou Li, ReneSola’s chief executive officer. “As an integral part of our vertical integration strategy, this state-of-the-art facility is designed to enhance our competitiveness as we benefit from cost synergies associated with upstream integration. The production output from this new facility will provide us with a stable, cost-effective flow of polysilicon as we strengthen our position as one of the world’s leading, low-cost, fully integrated solar companies.”

ReneSola’s two-phase, 3,000 MT annualized capacity polysilicon manufacturing facility utilizes the Siemens process and a closed loop system to produce polysilicon. Phase 2 of the facility, representing approximately 1,500 MT annualized capacity, is scheduled to reach mechanical completion in September 2009.

June 25, 2009

ReneSola Receives High Technology Status and Qualification for Reduced Income Tax Rate

Filed under: SOL — Tags: , , , , — Jason @ 10:54 am

Thursday June 25, 2009, 10:54 am EDT

JIASHAN, China, June 25 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a leading global manufacturer of solar wafers, today announced that its operating subsidiary, Zhejiang Yuhui Solar Energy Source Co., Ltd., (“Zhejiang Yuhui”), has qualified as a high technology enterprise in China. The classification allows the Company to enjoy a reduced income tax rate of 15% for three years, starting on January 1, 2009. The 15% tax rate applicable to Zhejiang Yuhui replaces the 25% statutory tax rate that the Company will be subject to once the current tax concession expires.

Classification as a high technology enterprise is awarded to companies which meet specific requirements as determined by the central government, including the number of patents and proprietary technologies the enterprise has in addition to the size and expenditure of its R&D facilities.

“We are delighted to be recognized as a high technology enterprise and become one of the select solar companies in China to receive such a qualification,” commented Mr. Xianshou Li, ReneSola’s chief executive officer. “From China’s central to provincial governments, we are seeing an increased focus and commitment on creating incentives for the development of clean, renewable energy such as solar power. As one of China’s leading low-cost, fully-integrated solar companies, we are confident that we are well positioned to play a leading role in helping China achieve its goal of a greener future.”

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