Canadian Solar to Build Solar Systems for IKEA - Analyst Blog

One of the world's leading solar companies, Canadian Solar Inc. CSIQ announced that it has struck a solar panel deal with IKEA Australia for a 3.6 megawatt MW power project.

The IKEA project is the company's largest commercial PV program so far globally.  Per the contract, the company will supply its CS6P-250P solar photovoltaic panels (PV) to IKEA Australia. This project will cover seven IKEA sites in Victoria, New South Wales, and Queensland. The green energy from this project will be sufficient to eradicate 4,000 tons of carbon dioxide per annum. Canadian Solar got the required permits and will provide engineering, procurement and construction (EPC) and operation and maintenance services for the project.

Canadian Solar is a leading global manufacturer of high-efficiency solar PV modules and provides the industry's maximum power production per panel. The CS6P-250P PV panel generates 3% more electricity compared to solar panels from other companies. In addition, Canadian Solar is committed to provide enhanced customer services by reducing the complexities and costs of solar system installation.

The demand for renewable energy is on the rise across the world mainly due to greater consciousness among the masses regarding its benefits. As a result, utility providers are shifting to clean energy from traditional sources for power generation. Solar companies like Canadian Solar are making the most of this favorable trend with an increasingly diversified customer base. This solar company is continuously expanding its customer base geographically, across the North American and European markets, as well as the emerging markets of South Korea, Japan and China.

Recently, the company received a contract to supply 43 MW of PV modules for Japan's second-largest solar project. Module delivery is scheduled to start from this month and complete in Feb 2015.

The company is scheduled to release its first quarter earnings on May 16 and the Zacks Consensus Estimate is currently pegged at 8 cents.

Currently, the company holds a Zacks Rank #3 (Hold). However, other well-ranked solar stocks include JA Solar Holdings Co., Ltd. JASO, Trina Solar Limited TSL and ReneSola Ltd. SOL. While JA Solar Holdings and Trina Solar carry a Zacks Rank #1 (Strong Buy),  ReneSola holds a Zacks Rank #2 (Buy).

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