Suntech Power Holdings Co., Ltd. (NYSE: STP), a leading photovoltaic cells and module manufacturer, based in China, announced a multi-year contract to supply solar modules to a division of Sun Edison, LLC, North America’s largest solar energy service provider.
The total value of the contract ranges from approximately $50 million to $90 million over the term of the contract. The contract is structured in a similar manner as Suntech’s long-term silicon supply agreement in order to enhance steady operating results.
The United States has become one of the fastest growing markets for photovoltaic products due to recent initiatives by a number of states to promote the use of renewable energy sources. The California Solar Initiative, which aims to increase the amount of installed solar capacity on rooftops in the state by 3,000MW by 2017, is one of the most progressive. It is anticipated that the solar modules shipped under this contract will be used primarily in the California market.
“This new relationship with SunEdison presents a strong step forward in our penetration of the rapidly growing U.S. solar market and our ongoing strategy to diversify our sales geographies,” said Dr. Zhengrong Shi, Suntech’s Chairman and CEO.
“This multi-year supply contract with us solidifies Suntech America as a permanent fixture in the United States offering high quality, UL-certified PV solar products. SunEdison only works with proven vendors for delivery of our solar power plants in North America. This contract means that we have the utmost confidence in Suntech product performance and quality,” said Mr. Brian Jacolick, vice president of sales of SunEdison.
In August 2006, Suntech established Suntech America, a wholly-owned subsidiary with the goal of expanding market share in the U.S.
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