Canadian Solar Inc.


CSIQ

recently signed a strategic partnership agreement with Berlin-based SolarWorX in an attempt to improve electric supply to approximately 1.2 billion people who are still living without a stable grid connection. The partnership will mostly serve the citizens residing in Sub-Saharan Africa.

Per the deal terms, Canadian Solar — as the lead investor — along with EIT InnoEnergy and German financial institution DEG will invest in SolarWorX to boost the supply of solar-powered electricity to households, as well as small and medium enterprises.

Solar Prospects in Africa

Clean energy is spreading rapidly across sub-Saharan Africa in recent times, driven by policy incentives, donor-backed auction schemes and derisking mechanisms. In particular, solar prospects in the region have been quite impressive lately, driven by declining cost of modules and increasing rate of investment.

To this end, it is imperative to mention that a solid 62% increase is projected in PV capacity additions in 2021 compared to 2018 (as stated by a BloombergNEF report).

No doubt, such impressive projections attract solar players like SolarWorX to expand footprint in the growing solar market of the Sub-Saharan Africa and teaming up with it will boost Canadian Solar’s presence in this booming space.

Global Solar Boom: Canadian Solar & Others

While Africa remains a lucrative market for solar players, the global solar market as a whole has been rallying over the past decade. Per a report by Fortune Business Insights, the global solar power market is projected to reach 4766.8 MW in 2026 from 2019, exhibiting a CAGR of 30.7%.

To reap the benefits of this expanding global solar market, Canadian Solar and other solar players are making every possible effort. Notably, Canadian Solar has one of the world’s largest utility-scale solar project development platforms, with a track record of bringing into commercial operation more than 5.6 GWp of solar power plants across six continents, as of Sep 30, 2020. In 2021, the company expects to ship 18-20 GW of modules.

Another such solar player,

JinkoSolar


JKS

shipped 5,117 MW of modules, which increased 53.8% year over year, during the third quarter of 2020. For 2021, the company expects to witness rapid growth in module shipments.

As of Dec 31, 2020,

Enphase Energy


ENPH

shipped more than 32 million microinverters worldwide. The company is making good progress on launching the IQ 8 PV, the world’s first grid-independent microinverter.

First Solar


FSLR

ended 2020 with net bookings of 5.5 gigawatts and current contracted backlog of 13.7 gigawatts. The company expects to increase nameplate Series 6 manufacturing capacity to 9.4 GWDC by 2022-end

Zacks Rank & Price Movement

Canadian Solar currently carries a Zacks Rank #3 (Hold). You can see


the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here



.

Shares of Canadian Solar have gained 194.4% in the past 12 months compared with the

industry

’s 260% surge.

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