QUOTE AND NEWS
Benzinga  Nov 26  Comment 
SeaDrill (NYSE: SDRL) shares fell 18.25% to touch a new 52-week low of $16.93 on weak earnings and suspension of dividend. ReneSola (NYSE: SOL) shares reached a new 52-week low of $1.90 after the company reported a Q3 loss of $0.06 per share on...
Benzinga  Nov 26  Comment 
SeaDrill (NYSE: SDRL) shares dropped 14.46% to $17.72 on weak earnings and suspension of dividend. ReneSola (NYSE: SOL) shares declined 11.56% to $1.88 after the company reported a Q3 loss of $0.06 per share on revenue of $372.50...
Reuters  Nov 26  Comment 
Chinese solar panel maker ReneSola Ltd reported a surprise quarterly loss as shipments fell by more than a fifth, sending the company's shares down more than 12 percent.
Reuters  Nov 26  Comment 
Chinese solar panel maker ReneSola Ltd reported an 11 percent drop in quarterly revenue, hurt by a 22 percent drop in shipments.
SeekingAlpha  Nov 20  Comment 
StreetInsider.com  Sep 17  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/ReneSola+%28SOL%29%2C+SolarMax+Enter+Expanded+Distribution+Partnership/9839109.html for the full story.
StreetInsider.com  Sep 11  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/ReneSola+%28SOL%29+Announces+10-MW+Module+Supply+Agreement+with+Juwi+India/9824122.html for the full story.
TheStreet.com  Sep 8  Comment 
NEW YORK (TheStreet) -- Shares of ReneSola Ltd. are higher by 9.77% to $3.37 in mid-morning trading on Monday, as solar stocks continue to rally from last week'saannouncement that China's National Energy Administration has issued updated policy...




 
TOP CONTRIBUTORS

ReneSola is a Chinese manufacturer of monocrystalline and polycrystalline silicon ingots and silicon wafers. It sells the silicon wafers to solar panel manufacturers that process the wafers into solar cells and assemble them into modules.

Demand for ReneSola's silicon wafers, which are specific to the solar industry, follows demand for solar panels. High oil and gas prices, fears of climate change, and political support for alternative energy sources are all playing a part in helping the emerging solar market develop.

ReneSola's main competitors in the silicon wafer market are LDK Solar, and solar wafer manufacturing divisions of large conglomerates engaging in solar wafer manufacturing such as Deutsche Solar AG, a divisoin of SolarWorld AG, Kyocera (KYO) and M. SETEK Co.

Business Overview

ReneSola is a Chinese manufacturer of monocrystalline and polycrystalline silicon ingots and solar wafers that entered into the solar wafer market in 2005 and had its first public offering in January of 2008.[1] It began by producing only monocrystalline wafers, and expanded into the polycrystalline market in the third quarter of 2007. [2] The company sells its products to PV solar panel manufacturers, including JA Solar Holdings, Motech Industries, Solarfun and Suntech Power. [3] The company also offers ingot and wafer processing services to certain customers.[4]

Business & Financial Metrics[5]

In 2009, SOL incurred a net loss of $71.9 million in net income on $510.4 million in total revenues. This represents a 14.1% increase in net loss and a 23.9% drop in total revenues from 2008, when the company lost $54.9 million on $670.4 million in total revenue.

Business Segments[6][5]

SOL operates through to reportable segments.

  • Wafer Segment (92.1% of revenue): This segment manufactures monocrystallne and multicrystalline solar wafers and offers services related to their use.
  • Cell and Module Segment (11.3% of revenue): This segment manufactures solar cells and modules.

IMAGE:SOL-Segments2009.jpg[6]

Trends and Forces

Environmental Concerns, High Oil, and High Gas Prices Make Solar Panels More Appealing

As a source of renewable energy, solar has a wide appeal as it is a virtually limitless resource, and once installed, can produce electricity without emitting harmful pollution. In developed countries that heavily use air conditioners the times of peak electricity usage are during the hottest, sunniest days of the year; the same days when solar panels can produce the most energy. Solar comes with limitations, however, most notably the poor efficiency of PV modules, which is further reduced by the need to convert DC from solar cells into AC current. Moreover, solar is weather dependent and intermittent, requiring storage or back-up systems to supplement during times of weak generation.

Continued Worldwide Silicon Shortages Will Hurt ReneSola

Silicon, a necessary input to most solar panels, is one of the most abundant elements on Earth, but refined silicon has been in short supply. The bottleneck has resulted in rising prices. As solar power has increased in popularity, silicon producers, who previously catered only to the semiconductor market, experienced a surge in demand. Due to limited mining capacity and processing capital they were unable to keep up with the increased demand. This created a "shortage" of refined polysilicon, and caused prices to soar.

For silicon wafer vendors like ReneSola, higher silicon prices mean higher production costs and lower margins. Higher silicon costs ultimately decrease demand for silicon as the cost is passed on to consumers through ReneSola’s customers and into the solar PV market. In the silicon PV industry, the cost of the silicon accounts for approximately 45% of each module’s manufacturing cost.[7] This means that when silicon prices rise silicon PV manufacturers are forced to either absorb the extra cost, or pass it on to consumers.

ReneSola has Entered the Expanding US Solar Market

The demand for solar wafers is dependent upon the demand of the end product that is sold to consumers, solar panels. Any increase in the demand for solar panels, correlates to an increase in the demand for silicon wafers, as approximately 90% of the solar market is silicon based panels.[8] The expanding US solar market represents a significant opportunity for ReneSola.

Many states have their own monetary incentives for private and commercial installations. One New York program offers as much as $1.5 million for the creation of a manufacturing facility and the production and sale of clean energy products.[9] These and other subsidies will need to remain intact until solar power becomes competitive with incumbent energy generation if solar is to become an important part of our power supply. States have also pressured utilities to invest in renewable energy sources by setting mandates that require a minimum percentage of the state’s energy to come from renewable sources. One example is California, which has said that 25% of its electricity will come from clean sources by 2020 and 75% by 2050.[10] These mandates benefit renewable energy companies as they force utilities to expand their generation portfolios, regardless of subsidies, or purchase Renewable Energy Credits(RECs) from others that produce electricity from renewable sources.

Competition and Market Share

ReneSola entered the monocrystalline solar wafer market in 2005 and the polycrystalline market in 2007.[1]

  • LDK Solar has a production capacity of 420 MW of polycrystalline silicon wafers.[11]
  • Kyocera (KYO) is a large electronics and semiconductor corporation that produces, among other things, solar panels, consumer electronics products, and telecommunications equipment.[12]
  • Sumco Corporation is a Japanese silicon company that produces wafers for semiconductors and solar panels.[12]
  • PV Crystalox is a British solar wafer company that is also involved in the Japanese silicon trading business.
  • SolarWorld AG is a vertically organized German solar company that operates in all levels of the solar industry, from raw materials to module sales.

ReneSola also competes with smaller local suppliers such as Jinggong P-D Shaoxing Solar Energy Technology Co. and Jiangsu Shunda PV-Tech Co.[14][15]




References

  1. 1.0 1.1 SOL 20-F 2007 Pg. 1
  2. SOL 20-F 2007 Pg. 42
  3. SOL 20-F 2007 Pg. 31
  4. 5.0 5.1 SOL 2009 10-K pg. 57  
  5. 6.0 6.1 SOL 2009 10-K pg. 56  
  6. Solar Buzz: Fast Solar Energy Facts
  7. Solar Buzz: Fast Solar Energy Facts
  8. New York - NYSERDA - Renewable, Clean Energy, and Energy Efficient Product Manufacturing and Incentive Program
  9. [http://www.newrules.org/electricity/rpsca.html California Mandate Renewable Portfolio Standard]
  10. LDK Solar 20-F 2007
  11. 12.0 12.1 12.2
  12. M Setek Company Profile
  13. Jinggong P-D haoxing Solar Energy Technology
  14. Jiangsu Shunda PV-Tech
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