GCL New Energy enters purchase deal with GCL Solar Energy

The Chinese solar giant today released a filing for the purchase of 37.9 MW of modules between two members of the group. Within the agreement GCL New Energy will be making the purchase from GCL Solar Energy in a connected transaction.

GCL Solar Energy, a subsidiary of GCL Poly, will supply the 37.9 MW of panels to GCL New Energy at a cost of USD 9.5 million, which works out at an average cost of USD 0.25 per watt. As the two companies are already linked, the deal constitutes a connected transaction for GCL Group.

There are four different types of panels included in the deal, 275 watt panels, 280 watt panels, 285 watt, and 290 watt panels. They shall all be used by GCL New Energy for a utility-scale PV plant in Wilson County, North Carolina.

It has been a busy few days for GCL. Just yesterday a member of the GCL Group, GCL System Integration Technology (GCL-SI), became the latest Chinese solar module producer to opt-out of the EU’s Minimum Import Price (MIP) undertaking. The company cited a decrease in average selling prices of solar modules across European markets, and will now be exposed to the EU’s anti-dumping and anti-subsidiary duties.

Additionally, last week, a bankruptcy court approved the sale of SunEdison assets, including its fluidized bed reactor (FBR) polysilicon operations to GCL-Poly. The company will pay USD 150 million for the operations, and will most likely be trying to commercialize the technology, which will be no easy task.