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Emeren Group Divests a 65 MWp Solar Project Portfolio in Germany

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Emeren Group Ltd. (SOL - Free Report) recently declared the sale of a 65 megawatt-peak (MWp) solar portfolio to Trina Solar International System Business Unit in Germany. The portfolio consists of three projects, which are expected to be completed in mid-to-late 2025.

These projects could provide opportunities for the integration of Battery Energy Storage Systems. This project sale should boost SOL's revenues in the upcoming quarterly results.

SOL’s Expansion Focus on Europe
 

Project monetization has been a well-known revenue-generating strategy for Emeren, a renowned solar project developer. With its already established footprint in Europe, a region that contributes 49% of SOL’s total revenues (as per the last reported quarter), the company diligently follows the strategy of building and selling valuable solar projects across this continent. The latest project is yet another bright example of that.

In line with this strategy, in September 2024, SOL divested a 57 MWp Solar Project Portfolio in France. In July 2024, the company divested a 42 MWp ready-to-build solar project portfolio in Spain.

Looking ahead, 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 offers ample growth opportunities for SOL and should encourage the company to expand its footprint in this region through similar project monetization.

Notably, as of Sept. 30, 2024, Emeren had 5,457 MW of solar projects in the pipeline under advanced-stage and early-stage development in Europe. Such a solid pipeline would enable Emeren to duly generate solid revenues from Europe in future quarters.

Opportunities for SOL’s Peers
 

Other prominent solar players, such as 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.

In August 2024, Enphase Energy declared that it has started distributing the company’s IQ8 Microinverters to aid the latest high-capacity solar modules in several European nations, including Bulgaria, France, Germany, Spain, Estonia, Slovakia and Croatia.

ENPH’s long-term (three to five years) earnings growth rate is 3.6%. The Zacks Consensus Estimate for its 2025 sales implies an improvement of 27% from the 2024 estimated figure.

Canadian Solar enjoys a solid presence in Germany, Poland, Spain, Italy, France and the Netherlands. As of Sept. 30, 2024, the company had 5,045 MW of an early-stage pipeline in the Europe, Middle East and Africa region.

CSIQ’s long-term earnings growth rate is 25%.  The Zacks Consensus Estimate for its 2025 sales indicates an improvement of 21.3% from the 2024 estimated figure.

SolarEdge has a strong presence in Germany, the United Kingdom and Switzerland. On Dec. 3, 2024, SolarEdge launched its first commercial storage system (CSS) in Germany. The new CSS-OD battery provides commercial organizations with a closely integrated, high-efficiency solar and storage solution that optimizes the economics of solar self-consumption.

SEDG’s long-term earnings growth rate is 1.2%. The Zacks Consensus Estimate for its 2025 sales calls for an improvement of 31.5% from 2024’s estimated sales.

SOL Stock’s Price Movement
 

In the past six months, Emeren shares have risen 11.8% compared with the industry’s average growth of 30.6%.

Zacks Investment Research
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.


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