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Emeren Group Divests a 57 MWp Solar Project Portfolio in France
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Emeren Group Ltd. (SOL - Free Report) recently declared the sale of a 57 megawatt-peak (MWp) solar portfolio of five projects to Trina Solar (France) Systems. This project sale can be expected to boost SOL's revenues in the third quarter of 2024.
The five projects include one early-stage, one late-stage and three mid-stage projects. There is a possibility of attaching Battery Energy Storage Systems (“BESS”) to this portfolio, which, if attached, will enhance the portfolio's overall value, boosting SOL’s revenue prospects in the upcoming quarterly results.
SOL’s Expansion Focus on Europe
Project monetization has been a well-known revenue-generating strategy for Emeren. With its already established footprint in Europe, a region that contributes 78% of SOL’s total revenues (as per its last reported quarter), the company diligently follows the strategy of building and selling valuable solar projects across this continent. The latest project sale is yet another bright example of that.
Earlier, in July 2024, SOL divested a 42 MWp RTB solar project portfolio in Spain. In December 2023, the company sold a solar portfolio worth 53.6 MWp in Hungary and monetized 29 MW of its solar PV portfolio in Spain in November 2023. It also sold a portfolio in Italy to Matrix Renewables that included five BESS with a capacity of 3,787 megawatt-hours.
As per the European Union’s solar energy strategy report, 320 gigawatts of solar photovoltaic are expected to come online by 2025, more than doubling from what came online in 2020. This will encourage SOL to expand its footprint in this region.
As of June 30, 2024, Emeren had 7,873 MW of solar projects in the pipeline under advanced-stage and early-stage development in Europe. Such a solid pipeline would enable Emeren to generate revenues through project monetization in future quarters, like the recent sale.
Opportunities for SOL’s Peers
Other prominent solar players like Enphase Energy, Inc. (ENPH - Free Report) , Canadian Solar Inc. (CSIQ - Free Report) and SolarEdge Technologies Inc. (SEDG - Free Report) are also expanding their footprint in the European region to reap the benefits of the growing solar market’s prospects here.
In August 2024, Enphase Energy declared that it has started distributing IQ8 Microinverters to enable the latest high-capacity solar modules in several European nations, including Bulgaria, France, Germany, Spain, Estonia, Slovakia and Croatia. In July 2023, the company introduced its most powerful home energy system, the Enphase Energy System, which is equipped with the new IQ Battery 5P and IQ8 microinverters, in Luxembourg.
ENPH’s long-term (three to five years) earnings growth rate is 15.9%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 47.2% from the year 2024 estimated figure.
Canadian Solar has a solid presence in Germany, Poland, Spain, Italy, France and the Netherlands. As of June 30, 2024, the company had 5,539 MW of an early-stage pipeline in the Europe, Middle East and Africa region.
CSIQ’s long-term earnings growth rate is 25%. The company delivered an average earnings surprise of 118.9% in the last four quarters.
SolarEdge has a strong presence in Germany, the United Kingdom and Switzerland. On June 4, 2024, SolarEdge rolled out dynamic rate optimization capability, powered by the SolarEdge ONE AI-based energy optimization system, in Germany.
SEDG’s long-term earnings growth rate is 2.4%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 72% from the year 2024 estimated figure.
SOL Stock Price Movement
In the past six months, Emeren shares have risen 14.4% compared with the industry’s average growth of 4.3%.
Image: Bigstock
Emeren Group Divests a 57 MWp Solar Project Portfolio in France
Emeren Group Ltd. (SOL - Free Report) recently declared the sale of a 57 megawatt-peak (MWp) solar portfolio of five projects to Trina Solar (France) Systems. This project sale can be expected to boost SOL's revenues in the third quarter of 2024.
The five projects include one early-stage, one late-stage and three mid-stage projects. There is a possibility of attaching Battery Energy Storage Systems (“BESS”) to this portfolio, which, if attached, will enhance the portfolio's overall value, boosting SOL’s revenue prospects in the upcoming quarterly results.
SOL’s Expansion Focus on Europe
Project monetization has been a well-known revenue-generating strategy for Emeren. With its already established footprint in Europe, a region that contributes 78% of SOL’s total revenues (as per its last reported quarter), the company diligently follows the strategy of building and selling valuable solar projects across this continent. The latest project sale is yet another bright example of that.
Earlier, in July 2024, SOL divested a 42 MWp RTB solar project portfolio in Spain. In December 2023, the company sold a solar portfolio worth 53.6 MWp in Hungary and monetized 29 MW of its solar PV portfolio in Spain in November 2023. It also sold a portfolio in Italy to Matrix Renewables that included five BESS with a capacity of 3,787 megawatt-hours.
As per the European Union’s solar energy strategy report, 320 gigawatts of solar photovoltaic are expected to come online by 2025, more than doubling from what came online in 2020. This will encourage SOL to expand its footprint in this region.
As of June 30, 2024, Emeren had 7,873 MW of solar projects in the pipeline under advanced-stage and early-stage development in Europe. Such a solid pipeline would enable Emeren to generate revenues through project monetization in future quarters, like the recent sale.
Opportunities for SOL’s Peers
Other prominent solar players like Enphase Energy, Inc. (ENPH - Free Report) , Canadian Solar Inc. (CSIQ - Free Report) and SolarEdge Technologies Inc. (SEDG - Free Report) are also expanding their footprint in the European region to reap the benefits of the growing solar market’s prospects here.
In August 2024, Enphase Energy declared that it has started distributing IQ8 Microinverters to enable the latest high-capacity solar modules in several European nations, including Bulgaria, France, Germany, Spain, Estonia, Slovakia and Croatia. In July 2023, the company introduced its most powerful home energy system, the Enphase Energy System, which is equipped with the new IQ Battery 5P and IQ8 microinverters, in Luxembourg.
ENPH’s long-term (three to five years) earnings growth rate is 15.9%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 47.2% from the year 2024 estimated figure.
Canadian Solar has a solid presence in Germany, Poland, Spain, Italy, France and the Netherlands. As of June 30, 2024, the company had 5,539 MW of an early-stage pipeline in the Europe, Middle East and Africa region.
CSIQ’s long-term earnings growth rate is 25%. The company delivered an average earnings surprise of 118.9% in the last four quarters.
SolarEdge has a strong presence in Germany, the United Kingdom and Switzerland. On June 4, 2024, SolarEdge rolled out dynamic rate optimization capability, powered by the SolarEdge ONE AI-based energy optimization system, in Germany.
SEDG’s long-term earnings growth rate is 2.4%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 72% from the year 2024 estimated figure.
SOL Stock Price Movement
In the past six months, Emeren shares have risen 14.4% compared with the industry’s average growth of 4.3%.
Image Source: Zacks Investment Research
SOL’s Zacks Rank
Emeren currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.