REC posts record Q3 revenue of $234 million, delivers global market outlook

Norwegian-owned solar firm REC Solar has published today its Q3 Solar Market Insight, revealing that the third quarter of the year represented an all-time high in terms of quarterly revenues.

Revenue across Q3 hit $234 million, the most ever for a single quarter in the company’s history, and a strong 39% increase on Q2 revenue.

Driving this surge was REC Solar’s performance in the U.S. market, which accounted for 60% of the company’s total sales for the quarter. Of the 361 MW of module sales recorded, 207 MW were shipped in the U.S.

In the Asia Pacific (APAC) region, Thailand was the dominant player for REC Solar, where the company secured 34 MW of module supply agreements, which made up 75% of total sales in the region over the quarter.

The REC Market Outlook also assessed global market conditions for PV, forecasting total module installations to reach 59 GW this year – a 33% increase on 2014. In 2016, the company projects, that figure will rise further to 65 GW.

REC management also expects the UN Climate Change conference, to be held in Paris at the end of the month, to give solar “an even stronger push” into next year.

In the U.S., where REC has enjoyed great success over the past 12 months, an anticipated reduction in the Investment Tax Credit (ITC) due at the end of 2016 will serve to slow the utility and large commercial solar markets, but stable progress is expected in the small/mid-scale and residential segments.

In Europe, collective PV deployment will reach 7 GW this year and next, the Outlook forecasts, with both Germany and the U.K. – leaders in PV in 2014 and 2015 – experiencing a slowdown. Storage opportunities in Europe’s mature solar markets will drive stronger residential and commercial sectors in 2017, REC believes.

As reported earlier this week in pv magazine, REC Solar has signed a cooperation agreement with O Capital in Egypt as the company explores development opportunities in the MENA region, while REC will seek to strengthen its Southeast Asia proposition with the provision of turnkey solutions for the market.

"We are extremely proud of this record quarter, demonstrating our sustainable and profitable growth, quarter after quarter," said REC CEO Steve O’Neil. "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.

"This should further increase solar’s momentum, which we will continue to leverage. Besides expanding our module capacity to 1.7 GW by the end of 2016, we are exploring new business models and penetrating new emerging markets."