JinkoSolar Holding Company Ltd. JKSrecently announced that its U.S.-based subsidiary has entered into a three-year agreement with sPower, an affiliate of AES Corp. AES. Per the terms, the subsidiary will supply 13 gigawatt (GW) of high-efficiency solar modules to sPower.
Solar Prospects in the U.S.
A key area of the renewable space in the United States is solar energy. Per an Energy Information Administration (EIA) report, solar electricity generation in 2017 was 211 gigawatt-hour/day (GWh/d), which is likely to increase to 246 GWh/d in 2018 and 294 GWh/d in 2019. In spite of the rapid uptake, solar contributed just 1.3% of the total U.S. utility-scale generation in 2017, indicating immense scope for growth in the days ahead.
Interestingly, a sharp drop in the cost of solar energy hints at higher demand for alternative energy. Per a report by International Renewable Energy Agency (IRENA), solar photovoltaic (PV) modules prices had dropped more than 80% in 2017 from 2009. This has further set the stage for solar power providers like sPower to expand their business by purchasing increased modules from suppliers like JinkoSolar, as is evident from the latest deal.
Our View
In January 2018, President Trump implemented 30% tariff on import of solar panel components. The tariff slam subsequently led the non-U.S.-based solar companies to put up solar manufacturing facilities in the United States.