ReneSola Sells 4 UK-Based Utility-Scale Projects To Equitix

ReneSola Limited (NYSE:SOL) announced the sale of its four operational, photovoltaic utility-scale projects in England to a market leading investor and fund manager, Equitix Fund IV.

The four assets are located in Derbyshire, Devon, Northamptonshire and Notthinghamshire, and have a total capacity of about 20 megawatts (“MW”). These projects are equipped with the ReneSola Virtus II modules. The projects were approved under the 1.3 Renewable Obligations Certificate (ROC) program and were connected to the grid this March.

ReneSola entered into a hedging transaction as it intended to protect the value of the four projects in U.S. dollars, given that the sale consideration was in GBP.

According to ReneSola's Chief Executive Officer, Xianshou Li, the latest sale continues to maintain its track record of “rapidly developing and monetizing projects in attractive developed markets”. He added that amid a fluctuating global economy, the company has had to adopt measures to safeguard the value of its assets.

ReneSola has over 300 MW of projects in its late-stage development pipeline, which highlights its ability to implement the downstream strategy, and boost profits and cash flow through the remaining half of 2016 and 2017.

We note that this Zacks Rank #1 (Strong Buy) company has been undergoing a series of changes, shifting ways from being a solar product manufacturer to a multi-faceted participant across the value chain.

Notably, the company is gradually transitioning toward downstream operations while scaling back its module business. Efficiency of management’s strategy was seen in 2015, when it recorded the third consecutive year of margin expansion and the second consecutive year of a decline in expenses. This resulted in operating profit tripling from the previous year. The company has also been able to narrow its losses significantly. In the first quarter as well, the company continued to witness this trend.

Stocks to Consider

Some other favorably placed stocks in the solar industry include Yingli Green Energy Holding Co. Ltd. (NYSE:YGE) , 8point3 Energy Partners LP (NASDAQ:CAFD) and Canadian Solar Inc. (NASDAQ:CSIQ) . While Yingli Green Energy and 8point3 Energy sport the same rank as ReneSola, Canadian Solar carries a Zacks Rank #2 (Buy).

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