Renesola revises up Q1 outlook despite China’s new PV provisions

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The new, more restrained provisions for the development of PV in China – announced on Friday – have prompted official reaction from big Chinese player Renesola Ltd.

The company, which left PV module manufacturing years ago and is focusing on project development, said in a press release that despite the new rules, it has raised its guidance for the first quarter of the year from $30-35 million to $40-45 million.

Commenting on the new provisions, Renesola said existing projects in China will not be affected and may benefit from an expected decline in PV module prices as a result of the policy change. Experts are predicting the “2018 Solar PV Power Generation Notice” issued by China’s government will result in significant overcapacity in the world's biggest PV market.

Renesola says distributed generation will remain part of its core business and it will operate in China's eastern provinces, where power prices are higher. “We believe the lower equipment cost and stable electrical rates will enable us to find unsubsidized net-metered and self-consumption projects at grid parity, with reasonable rates of return,” Renesola said in its statement.

The company added its project development business abroad may also benefit from lower module prices. “ReneSola has steadily built business momentum since the divestiture of the manufacturing business, and we are confident growth can continue,” the company added.

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