REC Solar has been leading the charge in solar, providing cutting edge technology up and down the value chain, it’s parent Company, Elkem, could be a good bet as a solar investment
Solar and PV Market Turbulence
The always declining costs of solar PV electricity combined with country-specific clean energy goals and regulatory assistance are driving international solar PV energy market development. Additionally, the corporate sector’s increasing interest in procuring solar PV capability to satisfy renewable energy goals in addition to the increasing incidence of solar PV in distributed production is fostering demand for solar energy worldwide.
Since the solar PV market has exploded over the last couple of decades, producers are focused on creating differentiated products to live and flourish in this dynamic sector. With the sustained decrease in the purchase price of solar PV modules into the point at which it represents a tiny fraction of total job costs, product cost is getting less important to clients in comparison with the modules’ functionality attributes, reliability, and quality.
One of the most essential features of solar PV modules for customers is power, and so the capability to generate a model of greater electricity will continue to different powerful businesses in the rest. Therefore, an innovation that’s built around bringing high energy grows in value. Because of this, differentiated technological innovation in product offerings is forecast to become critical in deciding the achievement of solar PV manufacturing companies.
Moreover, the solar PV industry continues to evolve with changes in regional and national regulations concerning various facets of the solar energy supply chain. Solar component providers which are vertically integrated with solar job developers are best positioned to raise revenue whilst decreasing costs, improving product quality, and improving overall competitiveness.
REC Solar Holdings, based in Norway, is a fully integrated provider of solar solutions with offerings across the value chain whose dedication to technology leadership, product quality support reliability, and ecological sustainability has made it the biggest European manufacturer of solar panels.
REC Solar Overview and Capital Projections
REC has appreciated noteworthy installations of its own 2018 launch, the REC N-peak. The business marketed 100 MW of the 150 MW total yearly manufacturing ability of REC N-peak in the first five months after launching product dispatch. Such achievement is a consequence of innovating professionally to fulfill customer requirements. What’s more, REC’s 2019 launch, the Alpha Series, is revolutionary from the solar PV area as the world’s greatest power 60-cell panel, and that the provider expects to be consumed as a best alternative’ merchandise for the worldwide rooftop solar marketplace dependent on the module’s capacity to provide increased power density.
Due to the high energy manufacturing ability of this item, space and cost savings are guaranteed, and it’s especially well suited to high need locations with restricted space. Because of this, the item is going to be an attractive alternative for both residential and commercial uses, ensuring optimum commercialization possible in tighter rooftop solar installations.
This item comprises half-cut cells and double layout in a 60-cell panel with around 330 Watt-peak (Wp), demonstrating 95% functionality ratio and yielding around 8.5percent more energy compared to a Tier I rival’s p-mono module of comparable specifications.
Splitting the panel to twin segments allows each segment to create power independently, with returns from both divisions combined prior to leaving the panel, allowing for higher overall energy yields and setup elevation. As an example, if a conventional 72-cell module is secure it’ll shed at least 1/3 of its electricity manufacturing and will stop producing power entirely if shaded throughout the module thickness. Together with the Twin Panel layout, even if half the plank is in the color, the other half will still generate power, which isn’t feasible with conventional modules in which the possible power stops in the color stage.
Additionally, in 2019 the firm launched its revolutionary REC Alpha Series, the world’s strongest 60-cell PV module which provides unmatched power of around 380 Wp. This groundbreaking merchandise unites Heterojunction (HJT) mobile technology using the organization’s patented Twin Panel layout and SmartWire Link Technology (SWCT). Produced by REC’s top technology experience from Germany and Singapore, the Alpha Series illustrates REC’s direction in half-cut cell technologies, representing a module of 120 half-cut HJT cells integrated with cutting edge SWCT to create significantly higher energy return and superior efficacy, even in demanding work environments, such as high temperatures.
The business has made over 34.0 million panels produced roughly 8.7 GW of solar PV electricity, occupying over 17.0 million houses.
REC’s benefit lies in its ability to come up with products featuring a distinctive mix of industry-leading technology, the culmination of hard-won sector comprehension, and its proprietary, in-house creations. In reality, the company has been the very first solar PV maker to successfully encode half-cut mobile technology, and it has achieved significant success using its patented ‘Twin Panel’ layout.
REC’s Alpha Series, for example, integrates its patented panel layout with advanced HJT mobile technology. This item is capable of generating 20 percent more energy compared to traditional modules of an identical configuration. On account of this high-power manufacturing capacity of this Alpha Series, substantial savings in total job costs and floor areas are guaranteed. Beyond commercial and residential rooftops with space limitations, the technology is predicted to experience use in tower buildings in towns and will be an attractive choice for zero-energy buildings falsified across many geographies.
Aside from the high-power features of REC’s solar options, the firm also excels in providing high energy returns with time. Producing panels using low LID and reduced thermal coefficient guarantees that the panels degrade more gradually over the years and continue to provide high levels of electricity during the product’s life. This guarantees exceptional energy return in the long term. The provider’s capacity to create innovative solutions that may be embraced over a broad assortment of weather and temperature conditions ensures broad application diversity.
Financial Performance
Globally, 2018 was a slow season for the majority of producers from the solar PV area, together with quotes putting the decrease in annual installments at 12 percent. Despite tough market conditions, REC showed solid financial performance and sold from the close of the calendar year, with total deliveries at 1,165 MW. The business also enjoyed important installations of its own 2018 launch, the REC N-peak. Aside from the positive market performance of its products, the firm installed over 2.3 GW of its own award-winning REC TwinPeak modules internationally, with specific headway in the USA (US) where shipment growth was 4 percent greater than the overall 2018 US market growth speed. Among European nations, the business registered a substantial year-on-year dispatch increase of 117% and 42 percent to Belgium and the Netherlands, respectively. Furthermore, REC expanded its distribution channels in 2018 by over 10 new partners worldwide, bringing the entire amount to 50. As a result of the organization’s constant focus on technological innovation, product quality, and client satisfaction, REC has managed to keep its expansion whereas a number of its rivals faced significant losses.
REC has managed to keep its own trajectory of continuous, sustainable growth as a consequence of always delivering high-quality and advanced solar solutions.
Client Acquisition
REC guarantees exceptional quality and trustworthiness of modules across its entire product lineup via rigorous internal testing and third-party certificates. The organization’s internal testing is up to 3 times more strict than industry standards, making sure clients always receive a trusted product. The reliability and quality of REC’s goods are evidenced by way of an industry-leading warranty durations of 20 years throughout the product range and displayed lowest guarantee rates of approximately 400 product claims for each four thousand panels sold.
Also, the business takes great pains to make sure its clients get superior support. For example, it creates partnerships with solar providers and service suppliers to ensure end-customers get a superb buy experience. The business also supplies exceptional after-sales support, together with technical specialists in each area providing support during the whole life of the solar setup. Having highly skilled staff install its top-notch goods, rankings REC to guarantee maximum client satisfaction.
Possessing the whole value chain enables the enterprise to guarantee optimal excellent management, in addition, to safeguard against cost volatility of panel elements, thereby allowing the organization to constantly create the industry’s highest quality solar panels and thus encourage outstanding customer acquisition and retention prices. REC has managed to obtain new clients and retain its current customer base through its exceptional technology that guarantees reliability and higher energy output of solar PV panels throughout its whole portfolio. The launch of new products has pushed new client acquisition.
Growth Possible
REC’s focus on engineering creation to guarantee customer requirements are addressed has helped it sustain the expansion and drive customer purchase. Together with the evolving technological landscape of the solar PV business, more than 50 percent of module imports in 2019 are predicted to function as monocrystalline products. This puts REC, using its current releases of high-performance monocrystalline panels, able for an optimal increase in the not too distant future. Taking into consideration the organization’s earnings are driven by the rooftop section, healthful growth prospects are anticipated from the commercial and residential solar PV market due to governmental push towards zero-energy buildings from the organization’s key markets (i.e., Europe, the USA, and Japan).
As clients in growing markets are increasingly centered on the ecological sustainability of PV modules, REC is in a fantastic position for expansion here also since the business believes in sustainable manufacturing, adopting measures like solar panel recycling, very low carbon footprint, and speedy energy payback period. Additionally, REC has updated and expanded its production lines, which augments its capacity to tackle rising market demand for its technologies. Furthermore, REC’s solid brand existence, sustainable business practices, and constant delivery of high-quality solar options guarantee its bankability for solar job investors, developers, and end-customers, representing the organization’s bright future expansion potential.
REC’s placement to meet current market demands and also to appeal to future market trends indicates the business’s strong growth potential.
The business has continued its expansion trajectory through a concentrate on innovating to meet client requirements and adapting to changing business trends. Its ability to maintain and expand its client base through technological leadership and dedication to reliability, quality, and superb customer support will ensure continued market share in the next several years.
