This Week's Solar Recap

We're winding down a phenomenal year for solar stocks, and there don't appear to be any limits to the industry's potential. The fact that solar power is now competitive with the grid around the world means more countries are installing solar, and as they do, these once struggling companies will improve financially.

The simple fact that banks and investors are lining up to finance solar projects shows how far the industry has come.

SolarCity lines up more financing
Speaking of financing, SolarCity (NASDAQ: SCTY  ) lined up another $200 million in financing via a three-year credit facility through Bank of America Merrill Lynch. The money will be used to fuel growth by paying for working capital.  

There doesn't appear to be any issues for SolarCity in financing growth, and with a securitization deal already completed this year, the company is on its way to a goal of 1 million solar customers by 2018.

Utility-scale projects continue to drive demand
There were a number of significant project signings this week. Here are the more notable deals.

  • Yingli Green Energy (NYSE: YGE  ) and a consortium it's working with won a bid to build 233 MW of projects in Algeria. The projects will be completed in 2014, and this win alone will account for about 10% of Yingli's annual module production.
  • Canadian Solar (NASDAQ: CSIQ  ) signed a supply agreement with Zhenfa New Energy Science & Technology to supply 100 MW of modules for three projects in China. The modules will be shipped over the next two months.  
  • Trina Solar (NYSE: TSL  ) signed supply agreements for 25 MW for the Bangchak Solar Energy Project in Thailand and a 1 MW project in Jordan.
  • SunPower (NASDAQ: SPWR  ) signed a deal with Ecomax Japan to supply 20 MW of E20/327 solar panels to projects in Japan.

Utility-scale solar projects are still a large percentage of the solar projects built around the world, and winning these projects is a key to manufacturers.

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Read/Post Comments (3) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 22, 2013, at 9:29 AM, kobbar wrote:

    Hey Travis, I always like reading your good posts in favor of solar stocks.

    Solar stocks should begin a big really this week, since last Friday finally the options expired, and after weeks of manipulation in order to bring the price down, a new rally is going to start this week.

    If you look at option expire at June and July you will see that a big rally opened up the week after options expired.

    So I think we're going to 20-30 percent rally at least in the next few weeks, then coming to good reports and earnings. Most stocks could grow almost 50 percent by end of February depends on how good their earnings will be.

    CSIQ, JKS, TSL should really move up at least 40 percent I believe by end of February.

  • Report this Comment On December 22, 2013, at 8:21 PM, shineridge wrote:

    I like the idea of solor energy, but, I don't see the solor industry really thriving any time soon. Because consumer demand won't grow much any time soon. Solor simply cannot compete with our current energy generation system of coal and natural gas burning plants. Solor energy generation has limitations (like solor panels don't work at NIGHT) that may not be resolved for many, MANY years. I think coal, natural gas, hydro and nuclear generation will dominate for at least another generation.

  • Report this Comment On December 23, 2013, at 4:58 PM, kunfu wrote:

    I don't listen to Travis He's a manipulator and full of deceit.

    The entire year with the exception of a couple of weeks Travis has been bashing Chinese Solar stocks. Oh man if you'd listen to this arrogant pig you would of lost more than your shirt.

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