REC’s Q3 2015 Solar Market Insight: Record quarterly corporate results, expansion strategy, and a bright global market outlook
REC’s key highlights:
- All-time-high quarterly revenues of USD 234 million, up 39% compared to Q2 2015
- Significantly increased quarterly module sales of 361 MW, in line with capacity expansion plan
- Module sales of 207 MW to U.S., accounting for nearly 60% of REC’s total sales in Q3 2015
- Secured supply agreements of 34 MW for Thailand, making up 75% of REC’s total sales in APAC in Q3 2015
Driven mainly by growth in the U.S. and China, REC expects global total module installations to reach 59 GW in 2015 – an increase of 33% compared to 2014 – and to reach 65 GW in 2016. According to REC, the global solar industry has a bright long-term future, with solar energy becoming increasingly competitive worldwide. Furthermore, REC management expects a strong agreement at the UN Climate Change conference (COP21), to take place in late November/early December in Paris, giving solar probably an even stronger push.
Based on various long-term supply agreements in the residential, commercial and utility segments, REC has further strengthened its position in the U.S. If a reduction in tax incentives is confirmed, REC management anticipates a slowdown of the utility and large commercial segments, depending on the final conclusion, but stable progress in the residential and small/mid-scale commercial markets.
REC forecasts more conservative market developments for 2015 and 2016 in Europe at around 7 GW each year, mainly due to slower markets in Germany and the UK. UK’s government recently announced plans to significantly reduce generation tariffs. REC hopes that the government’s final conclusion will be more considerate, especially in the commercial and industrial segment, to protect UK’s solar engineering know-how. With storage opportunities becoming more competitive, REC anticipates stronger residential and commercial markets in Europe as of 2017.
REC is further strengthening its footprint in Middle East and will seek to penetrate new regions in Africa. The company recently signed a cooperation agreement with O Capital, a fully owned subsidiary of Orascom Telecom Media and Technology Holding in Egypt. Additionally, REC is setting up local sales forces in various African regions, where still 620 million people have no access to electricity.
The company is also boosting its position in Southeast Asia as an expert for providing turnkey solutions. Most recently, this is demonstrated by two ongoing commercial installations in Singapore based on Power Purchase Agreements (PPA).
Steve O’Neil, CEO at REC, comments on the results and outlook: “We are extremely proud on this record quarter, demonstrating our sustainable and profitable growth, quarter after quarter. Continuously declining PV system costs are one of several key drivers for the industry. We are also expecting a strong agreement at the UN Climate Change conference, reflecting the ambitious targets on emissions and renewable energies set by around 150 countries worldwide in advance. This should further increase solar’s momentum, which we will continue to leverage. Besides expanding our module capacity to 1.7 GW by end of 2016, we are exploring new business models and penetrating new emerging markets.”
A briefing of REC’s Q3 2015 Solar Market Insight is available here. The presentation includes statements and outlooks that are based on views of industry analysts as well as REC’s top management expertise and are subject to uncertainties.
For further information please contact:
Public Relations Manager, REC
Leopoldstr. 175, 80804 Munich, Germany
Phone +49 89 54 04 67 225
Email agnieszka.schulze [at] recgroup.com
REC is the largest European brand of solar panels, with more than 15 million high-quality panels produced at the end of 2014. With integrated manufacturing from polysilicon to wafers, cells, panels and turnkey solar solutions, REC strives to help meet the world’s growing energy needs. In partnership with a sales channel of distributors, installers, and EPCs, REC panels are installed globally. Founded in 1996, REC is a Bluestar Elkem company with headquarters in Norway and operational headquarters in Singapore. REC’s 1,800 employees worldwide generated revenues of USD 680 million in 2014.
Find out more about REC at www.recgroup.com