Trina Solar (NYSE:TSL), one of the world’s leading solar PV manufacturers, signed a supply agreement with Southern California Edison (SCE) for 45 MW of PV modules. Delivery started in May.
The modules will be used in SCE’s Solar PV Program, which will blanket 65 million square feet of unused Southern California commercial rooftops with 250 MW of PV. The program will provide electricity for about 162,000 households.
The program is a milestone in utility-owned PV generation in the US.
Based in China, Trina stands out because of its strong balance sheet, low cost structure, high efficiency panels and strong presence in China and the US. Trina nearly quadrupled shipments in the first quarter, and forecasts strong growth through 2010, particularly in the US.
Trina has grown 15+% a year for the past six years, making the second-most efficient PV cell (after SunPower) for just $0.78 per watt, the lowest in the industry. This has resulted in significant earnings and margins over 30%. First Solar is the only solar company with lower costs because it uses recycled cadmium telluride for its thin film cells instead of silicon.
Although the company did 90% of its business in Germany and Spain in 2009, it’s quickly diversifying into the US, China and other emerging markets. German subsidies allow Trina to cut prices even more and while the decline of the Euro is worrisome, the company can compete even in a tough market. When the European market stabilizes and they further diversify, their prospects are very bright.
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