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ReneSola (SOL)

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Great stuff, thanks. I interpreted Brian as the black mono was using the finer (aestetically) pieces of a monocast ingot and thus naturally square. The square mono panel wafers was confirmed originating from big diameter rods. Interesting that they've mastered that growth too. Overall a very good interview. The prudency and long-term strategy consistency that they often talk about was evident here too. Having a lot of wafer and poly capacity they are on the stormiest of stormy seas in the industry now, but navigating skillfully without turning back. I think they as a result will come out as one of they strongest when prices pressure waves settles. So I'm not in SOL for their structure exposure in today's market, rather because they can avoid bleeding too much with the structure they have. That says something. Companies like JKS and CSIQ that source a lot of its raw material on spot markets have short-term better sourcing structure in todays market as well as good down stream sales focus. A combo of these low cost and low market cap cos would cover large parts of the value chain. Tier for these 3 is lower today than for the top 3, but Brian indicated that tier might be overated. Both SOL and CSIQ sell AC kits with 25 year warranty and insurance on all components (at least SOL has 25 years on the micro inverter). With the warranty insured by third party you don't have to worry about balance sheet liability maturities of your module supplier and other warranty claim risk. This should be quite attractive given the messy balance sheets. CSIQ was early with this insurance and quickly took market shares after introducing it. Higher tiers want to save a cent on offering its tier 1 brand instead of insurance, but seem to be losing market share on it. What's your view on this odyd? It seems we have tier and higher overhead costs and often high debt vs insurances, leaner and more stable financials. Will the bankability perspective change in 2013 as Brian suggested?

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Interesting points explo. I think that insurance is already built in for many t1s out there. I also think that stability of balance sheet is a critical element for anyone out there. Although it sounds that SOL is inclusive in making HP wafers reality is they are not. Also their strategy for the US market is not rally unique either. Buying cells from Taiwan is not a huge deal accept the gain of not having own cell capacity to collect dust and costs. If you can sell that product without cost, one can buy Taiwanese and other cells easily. All the same I like the company. You also know that Jinko sold their modules at 0.62 per watt. If you consider that CSIQ sold theirs at 0.72 and take the premiums from TSL's .78, those like JKS and including SOL are low priced sellers. One can argue that bankability is associated with premium pricing, which in this case, still holds TSL at the top. Finally the cost is pretty difficult to assess for the TSL. What I mean is the fixed aspect of it is difficult to grasp. I have criticized TSL for poor guidance, but I am excited how they moved money around in Q3. I was on vacation last week so not much activity but I plan still to put my thoughts in the article.

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Interesting points explo. I think that insurance is already built in for many t1s out there. I also think that stability of balance sheet is a critical element for anyone out there. Although it sounds that SOL is inclusive in making HP wafers reality is they are not. Also their strategy for the US market is not rally unique either. Buying cells from Taiwan is not a huge deal accept the gain of not having own cell capacity to collect dust and costs. If you can sell that product without cost, one can buy Taiwanese and other cells easily. All the same I like the company. You also know that Jinko sold their modules at 0.62 per watt. If you consider that CSIQ sold theirs at 0.72 and take the premiums from TSL's .78, those like JKS and including SOL are low priced sellers. One can argue that bankability is associated with premium pricing, which in this case, still holds TSL at the top. Finally the cost is pretty difficult to assess for the TSL. What I mean is the fixed aspect of it is difficult to grasp. I have criticized TSL for poor guidance, but I am excited how they moved money around in Q3. I was on vacation last week so not much activity but I plan still to put my thoughts in the article.

Good points. Regarding US tariffs on Chinese cells I think the point with SOL is not so much the existing partnerships with Taiwan's cell makers, but more as you say that they are almost free from the now devalued Chinese cell capacity. Regarding insurance built in I'm not sure what you mean? You mean they have, but don't talk about it? Ithink some of themhas said that they save money on tier 1 status, since they can avoid insurance requirement. Regarding pricing I'm not sure if the higher/lagging STP price is due to better brand giving better price. It could be contracts structure. I think panels are more commodity like than product like,i.e. more like you don't care about who made the gasoline you buy, not like who made the boots you bought for your trekking trip, as long as the economic/IRR is insured.

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When I think of pricing I think of the car market. If prices are low I think of the average car versus a luxury car. Some of the specs are very if not fully same, but the price is up. I do not think there is anything any more to be contractual and unchangeable to the degree of holding a price of a module. In regards of insurance, I think that some of that has been bought in China. We had in fact announcement "in case of bankruptcy" protecting module performance etc. Per say their warranty costs are the same with the insurance, but you are right, they are not third party, at least not announced, so it is me thinking in this category. However LDK has an insurance like that and it matters very little, if we think of the CSIQ statement about not having clients for ones which are broken (companies). YGE just hired 2000 people on November 17th. Trina is looking for people in EPC, there is a lot of talk about meat getting on bones of all of those announcements in regards of China. I hope they will have a kick ass Q4 (all of them)

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When I think of pricing I think of the car market. If prices are low I think of the average car versus a luxury car. Per say their warranty costs are the same with the insurance, but you are right, they are not third party, at least not announced, so it is me thinking in this category.

Car is even more product vs commodity compared to my boots examples. There it's not just your trekking trip that risks getting ruined if you choose a low quality brand, it's your whole life and those riding with you, under your responsibility if kids, that you risk ruining. The warranty guarantees the economics of your IRR analysis, thus resulting in the bank say yes to the loan you need to buy the panels, if the warranty seems solid. The warranty seems solid if it is likely that the company that provides it (the panel maker) will be around to honor it for the duration of the warranty time (25 years) or if it is third party insured and the insurer seems likely to be around for the duration of the warranty time to honor its insurance of the warranty. If the warranty seems solid from these perpsectives the module becomes "bankable", assuming its price enables a solid IRR. Having insurance makes it easier for banks to assess bankabilityand put the panel supplier on its bankable list, especially when industry is in this turmoil and balance sheets are weak. So for me a panel is more like a commodity that should meet IRR parameter analysis: Panel price vs discounted life-time power output decides IRR. Despite spanning over 25 year, IRR projection is easy since FIT is fixed and power output is guaranteed. Warranty risk decides IRR uncertainty, since power output is only guaranteed as long as the warranty can be claimed. High IRR uncertainty requires higher expected IRR for the investment to be attractive.

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Guest redsolar

Negative GM before inventory write down...looks troubling to me. Obviously...SOL has trouble containing the cost. Looking at another 50M$ equity destruction going into Q4. Even CSI looks troubling ...if it is not for the project revenue recognition in Q3. Overall, I think Trina did a good job in managing the inventory..better than anybody.

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Negative GM is not good, but one has to recognize that it is way more difficult to achieve good GM on wafer sales than on module sales. Operating margin and especially operating cash flow can still be ok for wafer sales compared to module sales even if modules GM looks better than wafer GM. They'll hopefully breakout the module GM, so we can compare that to peers. My guess is it will be only be slightly positive. At this point the expectation should be that poly and wafer heavy companies should have the most GM difficulties in 2H. Even GCL will look weak.

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http://info.renesola.com/ New guy flexing to show who's fittest on the block. Smart. Things are shaky and buyers are nervous, so showing with confidence the strength gained from diciplined preparation couldn't be timed better. Jaso is doing the same thing, but focuses on its main attribut - the balance sheet. These two and YGE are big market-share gainers in 2012. Coincidently they have the best module portfolios (a lot of high efficiency in volume). The 80% Q-on-Q for SOL in Q4 is unmatched though. JASO and YGE are growing nicely in Q4, most others are quite flat, HSOL losing, LDK crashing. If Yge wasn't such a financial mess (high non-controlling interest, high debt, high opex) it would be a screaming buy. Now SOL, JASO and JKS seems safer. SOL for utilization, JASO for strong balance sheet to endure its low utilization, both for good offering. JKS for buying poly on spot market and keeping inventory and cash low to minimize cost.

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Explo, I wish you would consider buying October data, you may change som of your views or reassure others. I also have details about bids from Golden Sun. Interesting, no Canadian, no JA no Suntech.

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Explo, I wish you would consider buying October data, you may change som of your views or reassure others. I also have details about bids from Golden Sun. Interesting, no Canadian, no JA no Suntech.

I bought it now and you're right, there's a lot of interesting stuff in there to digest. I specially like how you see the development in the rising high ASP markets of US and Japan. Especially in US there seems to be a shift, some names seems to be able to work around the AD/CVD and claim high market-share in October, while others seem to have left the market. Some are heading into Australia instead, which seem to be fast growing (no wonder considering the very high solar insolation level and land redundancy they have there). I expect South Africa will soon start to show up as a separate destination with all big plant announced to be built there. Kind of same high solar insolation situation there as in Australia.

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Guest larryvand

http://info.renesola.com/bid/255052/The-Latest-PV-Panel-Output-Study-from-Photon

In December of 2012, Photon Magazine released the results of its October study comparing several name brand PV manufacturers, which looked primarily at PV panel output performance ratios, and ReneSola modules were among them.

The study shows ReneSola's high efficiency PV modules outperformed all of the other manufacturers compared in the mono- and "mono-like" categories.

In terms of performance ratios for the mono- category, ReneSola came in at 96.1%, beating out competitors Yingli, Trina, Hanwha, and Sharp.

In the "mono-like" category, ReneSola's mono-seeded Virtus line actually out-performed other, more expensive, pure mono-silicon PV modules from competitors such as Sunpower, SolarWorld, Bosch, Yingli, and Hanwha.

ReneSola also performed extremely well in the poly- category, beating out name brands, such as Canadian Solar, by nearly ten percent.

This third party study reinforces ReneSola's claim to have some of the highest efficiency modules in today's solar PV marketplace. ReneSola continues to advance the efficiencies of its tariff-free modules through enhanced wafer technologies, while others focus on improving their cell technologies which come with a substantial price increase associated with recently enacted tariffs on solar PV modules imported into the U.S. consisting of Chinese-made cells.

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Guest larryvand

ReneSola's Virtus Module Tops PHOTON International's December Rankings Last update: 1/7/2013 4:18:00 AM http://custom.fmg.dowjones.com/custom/tdameritrade-com/html-story.asp?guid={8cfbd6f3-59e3-4657-83d6-850445cb18d3} JIASHAN, China, Jan. 7, 2013 /PRNewswire via COMTEX/ -- ReneSola Ltd ("ReneSola" or the "Company") (SOL), a leading global manufacturer of solar photovoltaic ("PV") modules and wafers, today announced its 245 W quasi-monocrystalline Virtus I module ranked first in terms of performance ratio among all comparable modules for the month of October, as tested by PHOTON International, a leading solar power trade publication. As part of a comprehensive and ongoing comparative study by PHOTON International's laboratory affiliate, PHOTON Laboratory GmbH, the Virtus I exhibited a 98.9% performance ratio under real-life conditions of differing levels of solar irradiation. In the same study, ReneSola's polysilicon module exhibited a 98% performance ratio, and was among the best performers in its category for the month of October. Performance ratio represents the actual amount of solar power produced in comparison to the maximum possible power output. With more than 170 different modules from over 100 manufacturers, the PHOTON study is widely regarded as one of the largest and most accurate of its kind. The complete results are available in the December issue of the PHOTON International magazine. "This outstanding result is a direct result of our long-standing commitment to research and development," said Mr. Xianshou Li, founder and chief executive officer of ReneSola. "Not only do our quasi-mono Virtus products surpass their monocrystaline competitors in terms of energy efficiency and manufacturing costs, they feature an average energy conversion efficiency of 18.2%, exceeding the industry average for conventional multicrystalline wafers of 16.5%. As we expand our sales and marketing efforts across the Americas, Europe, the Middle East and elsewhere, our customers can have confidence in the unique combination of value and performance delivered by our Virtus technology." Mr. Qingke Xiang, PHOTON Laboratory's module test project manager, said, "We congratulate ReneSola on its outstanding performance. The Company's success reflects the R&D achievements of Chinese module manufacturers competing at the forefront of the solar industry." The model numbers of the Virtus I quasi-mono and polysilicon modules as tested by PHOTON are JC245M-24/Bbv and JC245M-24/Bb, respectively.

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Guest larryvand

ReneSola Modules Achieve High Scores On Newest Industry Simulator ReneSola Demonstrates on Spire Corporation’s State-of-the-Art Flash Tester http://www.dailymarkets.com/stock/2013/01/14/renesola-modules-achieve-high-scores-on-newest-industry-simulator/ SAN FRANCISCO, Jan. 14, 2013 /PRNewswire/ — ReneSola Ltd (“ReneSola”) (NYSE:SOL), a leading global manufacturer of solar photovoltaic (“PV”) modules and wafers, today announced that the Company’s 60- and 72-cell polysilicon and monosilicon solar modules exceeded the Company’s power output guidelines when assessed by a recent third-party flash test. (Logo: http://photos.prnewswire.com/prnh/20080506/CNTU030 ) In December, Spire Corporation (“Spire”), a leading global provider of capital equipment used in the manufacturing and testing of PV modules and cells, invited ReneSola to participate in a demonstration of the Spire Spi-Sun Simulator™ 5600SLP flash tester, which exposes the modules to a single long-pulse flash of filtered xenon light to approximate solar irradiation. Four ReneSola modules were tested, all of which produced a maximum power output greater than that indicated on the Company’s datasheets, by as much as eight watts. The test results confirmed that ReneSola’s modules perform at least as well as the nominal power outputs and efficiencies stated on the Company’s datasheets. “Spire has set the industry standard in more ways than one, which is why we were confident the results of this demo would exceed expectations and support ReneSola’s claim that our modules are among the most efficient in today’s solar PV marketplace,” said Kevin Chen, president of ReneSola America. “We can’t emphasize enough the importance of independent testing in identifying top performers in the crowded market for solar products and solutions. Many of our customers also ask to perform their own tests on our modules, which is something we certainly encourage.” “ReneSola has done a remarkable job increasing and improving module efficiencies with its wafer technology, an innovative approach considering others are focused on improving efficiencies through cell technology,” said Steve Hogan, executive vice president and general manager of Spire Solar. “We were thrilled to see ReneSola’s technology on the 5600SLP. Spire’s 5600SLP is the latest in Spire’s metrology tool set, and its extended pulse length and Class A+ (in spectrum, spatial uniformity, and light stability) classification allows for more accurate measurements of advanced technologies such as those held by ReneSola. The results were favorable and we are pleased to have been able to work with ReneSola to demonstrate their performance claims, and prove Spire’s tool capabilities for customers to not sell short their module watts.” The flash tester used in the demonstration was calibrated with a National Renewable Energy Laboratory (“NREL”) tested and certified module immediately before the testing of ReneSola’s modules. The 5600SLP is the latest and most accurate and repeatable PV module measurement technology available in its class and joins Spire’s simulator product line commonly used by the NREL, Underwriters Laboratories, TUV Rheinland Group, Intertek, and the Florida Solar Energy Center. About ReneSola Founded in 2005, ReneSola (NYSE:SOL) is a leading global manufacturer of high-efficiency solar PV modules and wafers. Leveraging its proprietary technologies, economies of scale and technical expertise, ReneSola uses in-house virgin polysilicon and a vertically integrated business model to provide customers with high-quality, cost-competitive products. ReneSola solar modules have scored top PVUSA Test Conditions (PTC) ratings with high annual kilowatt-hour output, according to the California Energy Commission (CEC). ReneSola solar PV modules can be found in projects ranging in size from a few kilowatts to multi-megawatts in markets around the world, including the United States, Germany, Italy, Belgium, China, Greece, Spain and Australia. For more information, please visit www.ReneSola.com. About Spire Corporation Spire Corporation (NASDAQ:SPIR) is a global solar company providing capital equipment and turn-key production lines to manufacture PV modules. Spire also provides EPC services for photovoltaic system installations. For further details on the Company and its products, please visit www.spirecorp.com.

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Guest larryvand

Order Focus: ReneSola enters Saudi market with 15kW contract By Nilima Choudhury - 14 January 2013, 11:06In News, PV Modules http://www.pv-tech.org/news/order_focus_renesola_enters_saudi_market_with_15kw_contract The company's solar modules are expected to arrive in Medina early this year. PV module and wafer manufacturer ReneSola has announced a 15kW contract with Taibah University in Medina, Makkah Province, Saudi Arabia. The company's solar modules are expected to arrive in Medina early this year and will be used to charge the battery of an off-grid power plant project to test off-grid solutions. Commenting on the contract win, Xianshou Li, Founder and Chief Executive Officer of ReneSola said: "An off-grid solution, particularly one with PV modules powering an energy storage system, can be far more cost-effective than delivering electricity to a small area by conventional means. "At the same time, a PV solution can typically be completed faster than grid-connected projects, which provides additional incentive for developers to go with an off-grid PV alternative. We believe such off-grid solutions will find a niche in the PV market, particularly in emerging markets like Africa, South America and the Middle East, where we are already seeing demand. With our new presence in Saudi Arabia, we will continue to work to expand our business and bring innovative PV solutions to the region." In a report published last week, GTM Research predicts Saudi Arabia will represent almost 8% of total global demand by 2015. The report highlights insolation, grid prices and electricity demand as the fundamental factors that will make Saudia Arabia the MENA region’s first gigawatt-scale market by 2015. Furthermore, Saudi Arabia has announced a renewable energy strategy that will include 16GW of photovoltaic facilities and 25GW of concentrating solar power facilities by 2030.” According to Bloomberg, Saudi Arabia is investing US$109 billion into solar energy, with work on its first solar-powered facility to commence this year and could take two years to complete. Currently, Saudi Arabia has around 3MW of solar installations, lagging behind the UAE, Egypt, Morocco, Tunisia and Algeria. However, Saudi Arabia would like to free up more of its oil for the export market. With current oil prices already high and predicted to rise significantly over the coming decades, solar energy would be a cleaner and more cost-effective alternative. Zhidong Zheng, ReneSola's Senior Vice President of wafer technology, added: "We believe our modules are well suited for the climates of Saudi Arabia and the wider Middle East, particularly our Virtus II modules, which generate high efficiency with very low sensitivity to variations in temperature. The minimal degradation of our solar modules results in long life cycles and reliable power output. We are confident they will perform well in Medina, Makkah Province and attract other developers throughout the Middle East."

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Prices seem staying flat in China. Weekly report from Solarzoom will be available shortly

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