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ReneSola (SOL) Provides Update on Solar Projects in China

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ReneSola Ltd (SOL - Free Report) has announced that it has successfully connected more than 90 megawatt (MW) of rooftop solar projects in China in the second half of 2017. Of the total rooftop projects, the company intends to let out nearly 20 MW toward Engineering, Procurement, and Construction (EPC) services and will hold on to the remaining 70 MW.

Notably, the company had approximately 212 MW of operating projects globally as of Dec 31, 2017, of which 187.2 MW are in China, 15.4 MW in Romania and 9.3 MW in the U.K.

The company is gaining significant traction in its rooftop project business in China, which is being further supported by the aforementioned project update. ReneSola believes that its focus on ongoing project developments will further aid in successfully expanding its business in 2018 and beyond.

ReneSola’s Prospects in China

China has established itself as the world’s largest market for solar panels. In 2016, China installed 34.2 gigawatt (GW) of new solar power, up 126% from the previous year’s installations, according to the National Energy Administration (NEA).

China had a total of 101.8 GW installed solar capacity by June 2017, after adding 24.4 GW in the first six months in that year, the industry association declared. It is anticipated to reach 110 GW in the near term, the target that Beijing had aimed to achieve by 2020. Under China's 13th Five Year Plan (FYP), it aims to attain approximately 150 GW to 200 GW of solar PV capacity by 2020.

Now coming to ReneSola’s growth prospect in the country, currently, the company has more than100 MW of rooftop projects under construction and anticipates owning approximately 200 MW of rooftop projects by the end of 2017. It currently owns more than 135 MW of rooftop projects in operation in China.

Undoubtedly, with the robust plan ReneSola boasts for the near-future and the rapid growth in demand for solar energy in China, the company is expected to gain substantially in the domestic market. This is further supported by the double-digit sales growth that ReneSola realized during the third quarter, partially on account of provision of 5.7 MW of EPC services in China.

Price Movement                                                             

Shares of ReneSola have advanced 27.7% in last three months, outperforming the industry’s growth of 23.6%.

Such outperformance can be attributed to the company's steady flow of contracts from both domestic and international customers as well as solid cash generating capability..

Zacks Rank & Stocks to Consider

ReneSola currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same space are First Solar, Inc. (FSLR - Free Report) , JA Solar Holdings, Co., Ltd. and Sunrun Inc. (RUN - Free Report) , all of which carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

First Solar delivered an average surprise of 537.39% in the trailing four quarters. Its 2017 estimates have risen by 34.8% to $2.52 per share in the last 90 days.

JA Solar delivered an average surprise of 574.07% in the trailing four quarters. Its 2017 estimates have risen by 6.6% to 65 cents per share in the last 90 days.

Sunrun delivered an average surprise of 39.63% in the trailing four quarters. Its 2017 estimates have risen by 3.2% to 64 cents per share in the last 90 days.

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