Canadian Solar Inc. (CSIQ) has entered into a sales agreement with Siemens under which it will supply the latter 2.5 MW of solar modules for two solar projects. The twin projects, a rooftop system and a carport, are being built by Siemens for the University of Murcia, Spain.
Siemens will use Canadian Solar’s utility-scale series module, the MaxPower CS6X for both the solar projects. MaxPower CS6X is a robust solar module with 72 solar cells. These modules can be used for on-grid solar applications. Its designing and production techniques ensure a high-yield, long-term performance and reduce costs per watt by optimizing tracker and racking space due to their larger size and power.
Recently, the company also delivered its solar modules to the German project firm saferay for an 8.5 MW power plant located in Lindenhof near Neubrandenburg in the German state of Mecklenburg-Vorpommern. The photovoltaic system will use 36,000 CS6P-P solar modules manufactured and supplied by Canadian Solar. These modules are of high quality, reliability and have the capacity to produce clean and cheap energy.
Canadian Solar is a vertically integrated manufacturer. The company’s China based manufacturing assets give it a distinct cost advantage over its peers. Overall, the company’s geographically diverse customer base, ongoing capacity expansion programs, improving operating efficiencies along with material cost savings lend by its vertically integrated production structure ensure favorable prospects ahead.
However, the benefits of its ongoing cost reduction program were of late offset by higher than forecast wafer prices on the spot market, steeper polysilicon prices and increasing non-silicon materials costs, including silver paste.
Also, company shipments were curtailed by higher solar cell prices in the market, which were eating into its margins. The company is addressing this by ramping up its captive solar cell capacity. However, it will take some time before the company becomes fully self-sufficient for its solar cells requirements.
The third quarter of Canadian Solar faced the brunt of recent headwinds. The company recorded adjusted loss per share of 80 cents in the third quarter of 2011, compared with the Zacks Consensus Estimate of a loss of 51 cents per share. The company presently retains a short-term Zacks #5 Rank (Strong Sell).
Canadian Solar Inc. is one of the world's largest solar companies. As a leading vertically integrated provider of ingots, wafers, solar cells, solar modules and other solar applications, Canadian Solar designs, manufactures and delivers solar products and solar system solutions for on-grid and off-grid use to customers worldwide. The company provides premium quality, cost-effective and environmentally friendly solar solutions to support global, sustainable development. The company mainly competes with Suntech Power Holdings Co. Ltd. (STP).
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