Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world’s largest photovoltaic (PV) module manufacturers, today announced three initiatives designed to significantly expand its share of the U.S. solar market.
Suntech, which is based in China, plans to triple sales to the U.S. in 2009. through the following initiatives:
— Establishment of a joint venture with MMA Renewable Ventures, forming Gemini Solar Development Company LLC. Gemini Solar will seek to develop, finance, own and operate large-scale PV projects greater than 10 megawatts (MW). Projects built by the joint venture will be co-owned and operated by funds to be formed by Suntech and MMA Renewable Ventures that will also seek to attract third party investors.
— Acquisition of EI Solutions, a leading California-based commercial solar system integration company. EI Solutions has designed and implemented solar projects for many leading U.S. companies including Google, Disney, Sony Pictures, the North Face, and Puget Sound Energy. The acquisition will enable Suntech to provide complete solar solutions to commercial, utility and government customers in the U.S. The new subsidiary will be named Suntech Energy Solutions and will be headed by Andrew Beebe, EI Solutions’ current president.
— Rapid expansion of Suntech’s U.S. dealer network to increase penetration into the residential roof-top and small commercial system solar market and build brand recognition with downstream solar integrators.
Combined, these initiatives will enable Suntech to serve more completely the full breadth of U.S. customers, from residential and commercial building owners to utilities and government, the company said.
"These initiatives mark a new era of growth for Suntech in the U.S.," said Roger Efird, president of Suntech America. "With the acquisition of EI Solutions and our joint venture with MMA Renewable Ventures, we can now offer a fully integrated solar solution to commercial, utility and government customers. This will provide us with a much closer relationship with these customers and enable us to capture a significant portion of the rapidly growing market for larger systems, particularly in the utility sector. At the same time, our rapidly expanding dealer network will allow us to significantly increase our penetration in the residential and small commercial market."
In Related News…
Suntech competitor, Sharp Corp (6753.T) plans to capture a 50% market share in thin-film solar cells within four years, according to a Reuters report. The company said it intends to raise annual solar cell output eight-fold to 6 gigawatts in 2014 or 2015.
About MMA Renewable Ventures
A subsidiary of Municipal Mortgage & Equity, LLC "MuniMae," (OTC: MMAB.PK), MMA Renewable Ventures finances, owns and operates renewable energy and energy efficiency projects in the United States. The Company provides leases, Power Purchase Agreements (PPAs) and other customized financial solutions to help its customers manage energy costs. MMA Renewable Ventures is dedicated to delivering competitively priced, clean energy and energy savings to customers, strong partnership options for project developers, and exceptional opportunities for institutional investment in the clean energy sector. For more information about MMA Renewable Ventures, visit http://www.mmarenewableventures.com .
About EI Solutions
EI Solutions is one of California’s fastest-growing providers of commercial and utility-scale solar power systems. EI Solutions has completed projects for a wide variety of public agencies and private companies including Sony, BT and one of the largest solar installations on a US corporate campus, a 1.9 megawatt system on Google’s Mountain View headquarters. EI Solutions’ headquarters are in San Rafael, California, where all engineering, project management, finance and administrative functions are based. EI Solutions was a wholly owned subsidiary of Energy Innovations, Inc., an Idealab company. Broadpoint Capital advised Energy Innovations on the transaction.
About Suntech
Suntech Power Holdings Co., Ltd. is a world-leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech offers one of the broadest ranges of BIPV products under the MSK Solar Design Line(TM). Suntech has sales offices worldwide and is a market share leader in key global solar markets.
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