solar energy

Solar Energy Industry Roundup

Energy consumption is expected to increase by 30% to 2035. While this is a development that affects everybody, it is especially relevant for investors: what risk and what opportunities could it bring?

How are we going to satisfy this demand?

We will need to increase the usage of all our available sources of energy. Well-known energy industry insiders anticipate that renewable sources will grow fastest, but not overtake the conventional fuels until 2035.

EnergyConsumption

Source: BP

Until 2022, renewable energy is forecasted to expand by 920GW, with solar playing the most important role. Major countries accounting for this development are expected to be China, USA, and India.

In 2017, 98 Gigawatt of new solar capacity was installed, which is more than any other technology, conventional or renewable. The latest comparison for installed capacity per countries is available including 2016:

Solar_InstalledCapacity

Source: International Energy Agency

Finding Investment opportunities

For investors who want to participate in the solar success story, a vast number of companies is available to choose from, making it difficult to find a suitable investment:

Country Exchange and Symbol
Jinko Solar China NYSE: JKS
Trina Solar China NASDAQ: TSL
Canadian Solar Canada NASDAQ:CSIQ
JA Solar China NASDAQ: JASO
Hanwha Q Cells South Korea NASDAQ: HQCL
GCL New Energy Hong Kong HK: 00451
Longi Solar China SSE: 601012
Risen Energy China SHE: 300118
Shunfeng International Clean Energy China HKG: 1165
Yingli Green China NYSE: YGE
SMA Solar Technology Germany FWB: S92
PVCrystalox Solar UK LSE: PVCS

Operational Information for selected Companies

The following information were taken from the individual Annual Reports for 2017:

Name 2017 PV module shipments (Gigawatt, GW)
Yingli 2.9
GCL New Energy 5.1
Canadian Solar 6.8
First Solar 7.7
SMA Solar 8.5

Financial Information for selected Companies in China (RMB, million)

Name 2017 Revenue 2017 Gross Profit 2017 Net Profit
Yingli 8,363.7 304.8 -3,318.0
GCL New Energy 1,812.1 1,282.5 551.9

Financial Information for selected Companies North America (USD, million)

Name 2017 Revenue 2017 Gross Profit 2017 Net Profit
Canadian Solar 3,390.0 638.0 61.0
First Solar 2,941.3 548,9 -165.6

Financial Information for selected Companies in Europe (EUR, million)

Name 2017 Revenue 2017 Gross Profit 2017 Net Profit
SMA Solar 891.0 199.5 30.1
PVCrystalox Solar 26.4 -6.5 10.9

In this article, we offered an initial insight into the global solar sector and potential investment opportunities. For investors, it is always necessary to analyze an investment in all details, to judge individually how it fits into an personal investment framework, and what inherent risks/opportunities might come with it.

 

 


This article is general in nature and for information purposes only. This article is not intended as and does not constitute legal, financial, investment, or tax advice and should not be relied on as such. This article also does not constitute an offer to sell any securities to any person or a solicitation of any person to purchase any securities. Before making any legal or financial decision, you should seek advice from a qualified and registered legal or financial adviser. We do not have any position in any mentioned companies and will not take a position in the near future.

 

 

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