Solar panels maker Suntech Power Holdings Co. Ltd. (STP) has signed a deal with SunPeak Solar LLC to supply 28.7MW (DC) of solar panels for a 23MW (AC) solar power plant in Niland, California. California-based SunPeak Solar said its subsidiary Imperial Valley Solar Company (IVSC) 1 LLC will supervise the progress on Suntech’s installations.
During the course of the project, Suntech will install about 100,000 units of 285/290W Vd-Series modules with advanced SuperPoly silicon processing technology at the Niland plant.
Suntech’s SuperPoly silicon processing technology is capable of improving module performance by up to 10%. Further, the 72-cell Vd-Series module comes with Suntech's industry-leading 25-year power output warranty that ensures 6.7% more power than the standard industry warranty. The product meets UL1703, IEC 61215, and IEC 61730 standards.
The construction of the Niland solar plant is proposed to take place on a 123-acre plot located adjacent to the Imperial Irrigation District's (IID) Niland electric substation and natural gas turbine facilities. The project aims to support IID's goal to comply with California's Renewable Portfolio Standard (RPS) and satisfy growing peak power demands. Per the state’s RPS, electricity service providers are required to meet 33% of retail electricity sales from renewable sources by 2020.
The IID estimates the solar power plant to generate sufficient energy to power nearly 14,000 homes within the utility's service area in Imperial County and parts of Riverside and San Diego counties.
Additionally, the project has received the support of North American Development Bank (NADB), who will provide a $77.4 million credit facility for the project. To date, NADB has financed 150 infrastructure projects worth more than $3.26 billion, benefiting an estimated thirteen million people throughout the U.S.-Mexico border region.
SunPeak Solar is a privately-held solar energy project developer and asset manager with extensive experience in the development, financing, construction and operation of renewable energy projects.
Wuxi, China-based Suntech is a leading solar energy company. The company designs, develops, manufactures and markets photovoltaic (PV) cells and modules. The company also provides photovoltaic system integration services in China and the U.S., and is expanding into the development of utility scale solar power systems. The company mainly competes with JA Solar Holdings Co. Ltd. (JASO) and First Solar Inc. (FSLR).
Suntech presently has a Zacks #3 Rank (short-term Hold recommendation), which supports our long term Neutral recommendation on the stock.
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