Trina Solar aims for global PV ranking

“The United States’ solar photovoltaic (PV) industry will undergo a period of rapid development in 2011 and the number of products our company supplies to the US market will be doubled,” said Gao Jifan, chief executive officer of Trina Solar Ltd, a Chinese leading solar PV manufacturer.“There is no doubt that we will treat the US as a very important market in the future,” he added.According to Trina Solar, the company’s PV products accounted for 13 to 15 percent of the US market in 2010, a 10 to 12 percent increase compared with the previous year.“We sold PV products with a combined total energy output of 130 to 150 megawatts (mW) to the US in 2010, which made us the fourth-biggest provider to the US, and we are up against some tough competition including US domestic companies such as First Solar,” Gao said.He said Trina Solar is cooperating in a power project with Southern California’s Edison Corp, one of the largest utilities in the state, to provide 45 mW of PV products and related services.As the European market becomes mature and stable, many PV manufacturers are looking for new buyers in new markets. North America and Asia are likely to draw the most attention because of their fast-growing solar markets and supportive policies.“By the end of 2014, these two markets for solar PV products will account for more than 50 percent globally, with North America taking up 25 percent and Asia making up 25 to 30 percent,” Gao said.According to the National Development and Reform Commission, China’s PV installed capacity was 500 mW in 2010. Trina Solar provided between 8 to 10 percent of that total.Gao said that China’s solar power market will grow and provide many opportunities for companies such as his.“China’s domestic PV production capacity in 2010 was 1.1 gigawatt (gW). I believe it will register an increase of 60 percent in 2011,” he added.Trina Solar is aiming to become the biggest global manufacturer of PV products by the end of 2015. In addition to mass module production, the company will also provide system design, installation, project development and distribution. It is one of the few PV manufacturers to have developed a vertically integrated business model ranging from the production of cells to the assembly of modules.“We will continue to make efforts to provide integrated services. We estimate that 20 percent of our profit will come from service provision within five years and that figure could even rise to 50 percent,” Gao said.He said the Chinese PV industry has undergone rapid development in the past five years, but by the end of 2015 the speed of industry development will slow down, resulting in consolidation in the industry. By the end of 2020, the number of the big players in the solar power market will be fewer than 30 to 40 globally, Gao predicted.“Chinese companies need to take opportunities to grow stronger. First, we need to globalize, and second, we need to build up our brands creativity is the key for growth,” he added.According to Trina Solar, the company invested 500 million yuan ($76 million) in research and development in 2010, which equaled to 5 percent of its sales revenue.

– CHina Daily

Trina Solar targets 10% global market share for 2011

Nov. 25, 2010 (China Knowledge) - Trina Solar Ltd, an integrated solar-power product manufacturer based in Changzhou, Jiangsu Province, aims to expand its global market share to more than 10% in 2011 from the 8% forecast for this year, said CFO Terry Wang.

The firm's domestic market share is 3% to 5%.

Wang added that the company's solar cell output capacity will reach 1.1 gigawatts at the end of this year and 1.5 GW by the end of 2011, and the actual capacity may exceed between 15% and 20% of the targets.

The New York-listed firm mainly operates business in Germany and Italy, and the company's operating revenue in the former country accounted for 30% of the total in 2009.

Next year, the world's photovoltaic cell demand is expected to be between 16 GW and 20 GW, said Terry Wang.

Perspectives on the Recent U.S. Investigation of China's Solar Industry

The solar sector is a rather new, dynamic, and controversial industry. It attracts all varieties of people from casual investors to die hard technology gurus, and because of the endless news flow revolving around the sector it also attracts a lot of media coverage. Since the industry operates in direct conflict with much larger legacy industries that also play a part in the global energy market, the solar sector also attracts more than its fair share of critics. Unfortunately since the industry is so new a lot of information gets misrepresented by sources less informed on the technologies involved. Some of the misinformation is unintentional to be sure, but due to inevitable conflicts of interest a lot of information presented is also purposely misleading. So when news of the US investigating China’s unfair subsidization of its renewable “green” industries, solar investors in the US took the familiar sell first ask questions later path. While these claims don’t solely target the Chinese solar sector, only the impacts to Chinese solar companies are discussed in this article.

The first question that should be asked: does China unfairly subsidize their solar industry? Since it would be too lengthy to discuss every company in the industry, only the largest and most profitable are compared in this article. The most profitable US listed Chinese solar company in 2009 was Trina Solar (NYSE: TSL), and the most profitable US solar company for the same period was First Solar (NASDAQ: FSLR). Since unfair subsidies are being examined, it makes the most sense to look at the most profitable companies. TSL earned $98 million in 2009 while FSLR earned $640 million.

One of the complaints raised is that China unfairly offers tax incentives for its solar companies. In fact, most companies in China pay a standard uniform tax rate of 25%. Before 2008 when China normalized domestic company tax rates with foreign companies operating in China, domestic companies actually paid a higher tax rate. There are exceptions for new enterprises which get tax discounts for their first three profitable years, and there are also special tax rates which apply to certain “high technology” industries which China is actively trying to promote. However, these rates do not singularly target solar companies with exceptional advantages. Tax rates in the US are actually a bit more complicated in nature but similar themes of tax incentives and rebates do apply to select companies. In the case of the two companies mentioned, TSL’s effective tax rate for 2009 was 20.2% while FSLR only paid 6.7% in taxes despite being more than six times more profitable. If any solar company was granted special tax breaks, it wasn’t TSL. In fact, FSLR made more than the net income of every US listed Chinese solar company combined for 2009.

Another complaint is the Chinese government’s subsidization on the cost side of production. It’s true that labor costs are cheaper in China than in the US, but that’s just a function of the global economic environment currently. Labor is also cheaper in other parts of the world relative to China as well. Part of this argument extends to the claim that China manipulates its currency by keeping it at depressed levels. This is an entirely different topic however so it won’t be discussed here. A simple counter argument can be made even if China appreciated its currency to the degree the US has implied, wage differentials between the US and China would still be extremely wide. As far as the crystalline solar industry is concerned, labor is actually a small part of costs for most of the vertical value chain outside of module assembly.

Other parts of the cost equation involve the raw materials in producing solar modules. One of the key components is polysilicon which until several years ago only the most industrialized and technologically advanced countries such as the US, Japan, and Germany held virtual monopolies on its production. Due to the rapid expansion of solar module end demand in the past half decade, the demand for polysilicon skyrocketed. However production capacity for polysilicon did not expand as fast due to high capital costs, technological barriers, and extreme long lead times in construction. This imbalance in supply and demand caused the price for polysilicon to surge over ten fold. Most silicon based solar companies in China ended up paying several times the multiple for polysilicon, including TSL. Western silicon based solar companies enjoyed better pricing terms due to their higher levels of relations with incumbent producers. US based Sunpower (NASDAQ: SPWRA) for example paid half the rate for polysilicon than TSL a couple years ago. There was no Chinese government intervention by means of subsidies here. Pricing and procurement costs were completely a function of the free markets as it always should be.

Much like Silicon Valley is the hub of US information technology where ideas are formed, visions collaborated, and business plans executed at high levels of efficiency and synergies, China is in a sense the manufacturing hub for the global economy. Because so much ends up being manufactured in China, the country has built an extremely efficient supply chain and logistics infrastructure. This doesn’t apply solely to solar modules, but everything else where raw materials need to be collected, processed, and shipped within the supply chain. In the case for solar modules however, the plastics, metals, glass, and other consumables used are simply much cheaper to procure than in other countries. Manufacturing operations in many cases str extremely centralized. TSL is case in point as the poster child of centralization. Being a fully vertically integrated module producer, TSL produces its own ingots, wafers, cells, and modules all at the same location. This saves a lot of time and costs that would have to be otherwise wasted by packaging and reprocessing components within the value chain. To further augment cost reduction, TSL has also set up a manufacturing campus next to their own site so key suppliers could relocate to save on logistics. In contrast, TSL’s direct US based SPWRA’s supply chain stretches between the US, Europe, South Korea, Philippines, China, Mexico, and soon Malaysia as well. Consequently, Sunpower’s module processing costs were and still are much higher than TSL. Part of this is also due to the costs involved with different technologies, but a large part is simply bad supply chain management.

Another interesting claim made is that China subsidizes electricity for their solar companies. It is true that some Chinese based solar companies enjoy temporary electricity subsidies at the local level, the central government does not offer national subsidies. TSL for example, gets no electricity subsidies. Since FSLR and SPWRA manufacture to a high degree outside the US, they are not good comparisons. Hemlock, the largest polysilicon manufacturer in the world by capacity, does manufacture in the US. In a state senate bill passed a couple years ago, the state(Michigan) “to grant a refundable business tax break based on the price it pays for electricity to the Hemlock Semiconductor company and perhaps other producers of polycrystalline silicon used in solar cells and semiconductor chips.” This is not to single out any company but to show that industry subsidization is not a one way affair.

Which country subsidizes who with what is really an endless story. All nations have their governments subsidize particular industries in one form or another on a local or national level. Finger pointing would be an endless task and quite frankly a meaningless one. Perhaps the more important question is what effect US trade sanctions would have on Chinese solar companies? So without assuming blame to either side, nor calculating the probably this sort of action could occur, the impact of the US shutting its doors to Chinese solar companies is examined next.

Currently, the vast majority of solar modules produced end up in the European Union. Germany is the largest consumer of solar modules currently. Last year the US accounted for less than 10% of global solar demand, and that percentage is expected to drop further this year as other regions of the world accelerate their solar deployment. Again, Trina Solar is being used as an example for simplification purposes. One can substitute TSL with any of the larger US listed Chinese solar companies such as Yingli Solar(NYSE: YGE) or Suntech Power (NYSE: STP) to yield similar comparisons.

During 2009, TSL shipped 2% of their modules to the US. This represented about $17 million worth of modules that the US imported from TSL. In prior years, the numbers were even smaller since the company only set up US operations a couple years ago. It’s interesting to note that since the period TSL became a US listed public company in late 1996, the company has provided the US with a large trade surplus since it bought polysilicon and manufacturing equipment from the US but shipped much less finished goods in return. For example, TSL does buy polysilicon from Hemlock, and it sources all its multicrystalline ingot casting furnaces from another US company, GT Solar(NASDAQ: SOLR). This doesn’t even take into account millions US financial firms such as TSL’s US based auditor, investment banks, and exchanges have benefited since TSL became a US listed public company. At least in this case, the absolute dollar trade balance between Trina Solar and the US has been quite a lopsided one where the US has benefited.

TSL does expect its US exposure to increase to 13-15% for 2010 as it expands operations to gain market share. A simple conclusion can be made that if the US closed its doors to Chinese solar companies, TSL would lose 13-15% of its revenue source this year. In reality, the impact is likely to be much less. It’s possible TSL would suffer no impact at all if it could not sell to the US. Part of the reason was detailed above since the US is only a small portion of global solar demand. Global solar demand this year is estimate at around 15 times TSL’s manufacturing capacity, and more than double the combined solar cell capacity of all US listed Chinese solar companies combined.

Based on the most recent round of earnings reports, TSL has the lowest manufacturing processing costs among silicon based module manufacturers in the world. As a result, their unit costs is also among the lowest in the world as measured on a per watt scale. This allows the company to price competitively and sell out its capacity ahead of peers who may have higher manufacturing costs. While the gap between TSL and other top tier Chinese manufacturers is not very large, the gap between it and non-Chinese counterparts is extremely wide. US, German, and Japanese peers price their modules on average at 30-40% higher TSL.

In an environment of booming solar demand as represented currently, everyone including higher priced competition can do well. Many top tier Chinese manufacturers such as TSL have indicated for the past year that they are overbooked and sold out. Because of capacity constraints among lower cost providers, higher cost modules can still get absorbed in a seller’s market. If certain markets decline or get shut off, higher cost producers should be among the first to see their business drop since solar modules are essentially a commodity. Bankability issues do exists but namely for smaller firms, not large scale producers such as the larger Chinese companies listed in the US. Thus with product differential so narrow currently, costs become the main driver on who sells out first.

For a simple analogy, imagine a bus carrying 20 very thirsty tourist stops at a refreshment center. There are 4 venders who each have 5 bottles of water to sell. While the brand of bottled water differ, they are still widely recognized and accepted labels. Three vendors sell their water for one dollar per bottle. Another sells for 1.25 a bottle while the last sells for a high 1.50 per bottle. Since there are enough thirsty tourists, everyone is going to sell out this time. What would happen if the next time only 15 tourists were on the bus? While it’s not always 100% higher cost commodity providers don’t sell, the odds of lower cost providers selling out first is much higher.

A US trade barrier would then only shut off less than 10% of the global market for Chinese producers. Branded Chinese names would simply shift their geographic allocation to other parts of the world as their production capacity is still much less than the remaining 90% open market. Consequently, the US would end up paying more for their solar modules probably from higher cost producers not sanctioned by US trade barriers. In the event demand does not encompass the global supply of both low and high cost providers, lower cost producers will continue to take market share away from higher cost peers. This exact scenario has been playing out since the credit crisis of 2008 shook up the entire industry. Most lower cost providers increased shipments and profitability while many smaller higher cost peers lost share with many even going out of business. There have been big winners and just as many big losers within the industry over the past couple of years. If particular attention is focused on the failures, then an accurate account of entire industry wouldn‘t be portrayed.

Perhaps the most interesting aspect of this drama is the timing of these claims made by the US against China. With less than two weeks until midterm elections in Washington, is it only coincidence that these charges are brought up now? Maybe it’s just political rhetoric ahead of political season, or maybe the US could be embarking on a longer term escalating in trade disputes with China. Only time will tell. Regardless of the real intent or outcome however, until the dynamics of the solar industry demand changes dramatically, top tier low cost providers should still maintain an upper hand as long as demand from open markets remain strong. Since the majority of larger Chinese solar companies are the lowest cost providers in the world, they should be among the last to get pushed out if the industry experiences a negative downturn.

Disclosure: Long TSL, YGE. No position in STP, SPWRA, FSLR.

Author: Investing Hobo

Source: http://seekingalpha.com/article/232009-perspectives-on-the-recent-u-s-investigation-of-china-s-solar-industry?source=yahoo

Auriga Maintains a 'Buy' on Trina Solar Ltd. (TSL); More Undervalued Today than Yesterday, raises PT to $41.

August 25, 2010 9:34 AM EDT
Auriga maintains a 'Buy' on Trina Solar Ltd. (NYSE: TSL), raises PT to $41.

Auriga analyst says, "We continue to believe that TSL is in the top-tier of Chinese solar manufacturers because of the scale of its business model as well as its ability to produce a low-cost and highly bankable module. We see no reason to back off our 15 multiple; thus, our price target needs to increase commensurate with our EPS estimates. Investors should take a closer look at the inherent profitability within the TSL model and appreciate the value in a stock that is trading at just 8.2x our 2011 estimate."
Source: http://www.streetinsider.com

Article: Trina Solar's Balanced Q2 Earnings Report

Link: http://seekingalpha.com/article/222211-trina-solar-s-balanced-q2-earnings-report

Auriga reiterates Buy rating and raised the price target from $36 to $41.

“Management did not disappoint investors with a strong beat and raise scenario on the Q2 conference. However, after raising estimates ahead of the call last week, we now find ourselves increasing both our estimates and price target again. We fully expected management to raise 2010 shipment guidance, which they did, but the surprise to our model came on the guidance of capacity reaching 1500MW in 2011 versus our prior estimate of 1300MW. In our view, the stock was inexpensive heading into the call, and now appears more undervalued at just 8.2x our 2011E EPS after the call. A long position in shares of Trina Solar (TSL, Buy) is one of our top ideas in the solar sector and we find the shares significantly mispriced as these levels.

Citi reiterates Buy rating and raised the price target from $30 to $36.

“Consistent with our bullish initiation of coverage on 7/11/10, this report confirms the view that Street estimates for 2H:10 and 2011 are way too low. Despite being more cautious than TSL on pricing, we are nonetheless

raising F2010 revs/EPS from ~$1.45B/$2.56 to ~$1.56B/$3.09 and F2011 revs/EPS from ~$1.7B/$2.81 to ~$1.88B/$3.68 (Street $2.65). Using ~10x our new C2011 (about in-line w/Chinese peers)…TSL remains our favorite name in the solar sector given its strong balance sheet, more measured approach to the systems business, leading cost position, and budding track record for execution.”

Wedbush Raises Price Target On Trina Solar (TSL) to $34

August 24, 2010 12:45 PM EDT

Wedbush raised its price target on Trina Solar (NYSE: TSL) significantly from $24 to $34, following Q2 results, while reiterating their Outperform rating.

The firm is positive on shares given the company’s low cost structure and competitive position. The firm commented, "We expect Trina Solar to perform better than its peers within our solar technology coverage universe in 2010 and 2011 as the company’s cost leadership position and customer diversification allow it to navigate potential oversupply conditions in 2011."

The firm raised revenue/GAAP EPS estimates to $1.529 billion/$2.85 from $1.276
billion/$2.04 in 2010 and to $1.772 billion/$3.43 from $1.426 billion/$2.25 in 2011.

The new price target represents 42 percent upside from the current price of $23.94 (+6.8%).

Trina Solar profit beats Street, ups FY shipment view

* Q2 profit $0.52 per ADS vs est of $0.49

* Revenue more than doubles, beats Wall Street view

* Sees FY shipments between 900 MW and 930 MW

Aug 24 (Reuters) - China's Trina Solar Ltd (TSL.N) on Tuesday reported second-quarter profit above Wall Street Estimates and raised its full-year shipment outlook as strong European demand propped up sales.

For the quarter, the company earned $38.7 million, or 52 cents per American Depositary Share (ADS), compared with a profit of $18.6 million, or 35 cents per ADS, last year.

Sales more than doubled to $370.8 million, from $150 million a year ago, on higher shipments.

Trina, like others in the industry, was helped by strong demand in Europe, as developers rushed purchases ahead of cuts to renewable energy subsidies in key markets, including Germany and Italy.

For the full year, the company expects total module shipments of 900-930 MW, up from its prior view of 750-800 MW.

Analysts were looking for a profit of 49 cents per ADS, on revenue of $338.7 million, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $22.41 Monday on the New York Stock Exchange. The stock is so far down nearly 30 percent from a year-high in January. (Reporting by Adveith Nair in Bangalore; Editing by Maju Samuel)

Auriga Boosts Price Target On Trina Solar (TSL) to $36, Suggesting 58% Upside

Auriga lifts price target on Trina Solar Ltd. (NYSE: TSL) to $36, representing 58% upside, saying new cost model reveals more profit. The firm maintained their Buy rating.

The price target is based on 15x their 2011 EPS of $2.41.

The firm comments, "We admit that we are late to publish our report as we have been lagging the consensus for a while, but our late quarter checks suggest shipments will likely exceed the higher end of guidance; we are modeling 215MW versus guidance of 200MW to 200MW. In addition we are also modeling module pricing to decline by 3% to $1.70/W. Our poly cost assumptions are $72/kg and 6g/W, while our non-poly costs decline by just a penny to $0.75/W. We have also assumed a $10mn net foreign currency loss in Q2. Our new estimates are above the consensus estimates of $335mn and $0.49."

Source: streetinsider.com

Trina Solar initiated with a Buy at Jefferies, PT $35

Target $35.

Source: theflyonthewall.com

Trina Solar to Supply 35MW Solar Modules to SunEdison

Under the terms of the agreement signed with MEMC, Trina Solaris expected to supply SunEdison with approximately 35 megawatts (MW) of PV modules over the remainder of 2010. The modules are expected to be utilized by SunEdison for projects in North America and Europe.

Source: http://finance.yahoo.com/news/Trina-Solar-to-Supply-Solar-prnews-2477538852.html?x=0&.v=89

Trina Solar upgraded to Overweight from Equal Weight at Barclays

In conjunction with our sector note, we are

upgrading shares to 1-OW, raising our price target

to $30, representing ~34% upside from current

levels. Although we had recently highlighted a

positive risk-reward trade for Trina going into

earnings (see 6/28 note "Raising Estimates, Price

Target" for more details), our 2-EW rating was

predicated on uncertainty with respect to 2011

demand outlook. Shares are down 17% ytd vs 2%

S&P decline, and have generally lagged

performance of stocks in the sector, mostly due to

concerns over 2011 outlook, in our view. Our

recent industry checks indicate that 2011 demand

outlook is improving and we now see significant

upside to consensus 2010/2011 estimates as well

as valuation. Earnings call on 8/24 (where we

expect mgmt to beat/raise guide) could act as the

next potential catalyst for shares.

Summary

􀂉 What's changed: We are raising 2010 EPS from

$2.25 to $2.75. Our new 2010 ests assume

890MW shipments and flat/2% q/q ASP decline in

Q3/Q4. We are raising our 2011 EPS from $2.45

to $3.25. Our new 2011 ests assume 50%

shipment growth and $1.45/W ASPs exiting '11.

Source: http://www.theflyonthewall.com/permalinks/entry.php/TSLid1267816/TSL-Trina-Solar-initiated-with-a-Buy-at-Jefferies

Top 10 Best-Rated U.S.-Listed Chinese Stocks

Trina Solar Limited (ADR) (NYSE:TSL) is the 1st best-rated stock in this segment of the market. It is rated positively by 19 brokerage analysts. It is covered by 23 brokerage analysts.

Full story: http://www.cnanalyst.com/2010/07/top-10-bestrated-uslisted-chinese-stocks-tsl-ntes-bidu-pwrd-sina-mr-fmcn-ctrp-yge-stp-jul-19-2010.html

Germans Share of Global Solar-Panel Market Shrinks, Handelsblatt Reports

The global market share for German solar-panel makers including Q-Cells SE and SolarWorld AG shrank between 2006 and 2009, Handelsblatt reported, citing a study by management consultant PRTM.

German companies’ share of panel sales declined to 31 percent in 2009 from 53 percent in 2006, according to the survey, the newspaper said.

Chinese companies such as Trina Solar Ltd. now have the largest market share, the newspaper added.

Source: Bloomberg

Jefferies Starts/Resumes Coverage on Solar, TSL $35 PT

Trina Solar $35 price target.

Source: http://www.streetinsider.com/New+Coverage/Jefferies+StartsResumes+Coverage+on+SolarInfrastructure+Group:+JASO,+YGE,+TSL,+ITRI,+ENS,+AMSC+at+Buy/5804535.html

Citi Initiates Coverage on Trina Solar (TSL) with a Buy

July 12, 2010 9:08 AM EDT

Citi initiates coverage on Trina Solar (NYSE: TSL) with a Buy rating. PT $30.

Citi analyst says, "We see solid execution, no need for capital, conservative estimates, and sustained cell/module cost advantages all at a discounted valuation. Our $30 target is 11x our $2.82 2011 EPS (Street ~$2.22)."

To see all the upgrades/downgrades on shares of TSL, visit our Analyst Ratingspage.

Trina Solar Limited (Trina) is an integrated solar-power products manufacturer based in China with a global distribution network covering Europe, North America and Asia.

TRINA SOLAR TO POWER AUSTRALIA'S LARGEST ROOF-MOUNTED SOLAR ARRAY FOR THE UNIVERSITY OF QUEENSLAND

CHANGZHOU, China, June 25, 2010 /PRNewswire via COMTEX/ --Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic (PV) products from the production of ingots, wafers and cells to the assembly of PV modules, today announced that it is expected to supply PV modules to the University of Queensland ("UQ") St Lucia campus in Brisbane, Australia, to be used for a 1.2 MW solar system which will be installed on the rooftops of four university buildings.

The solar system will be developed by Ingenero, Australia's leading renewable energy company specializing in solar power. The large-scale installation will provide UQ with a significant source of clean green energy and is expected to be a resource for students and staff, who will study the array's performance and collaborate with Trina Solar as part of the University's drive to help develop next-generation solar technologies. Trina Solar also expects to work together with UQ on several cutting edge solar technology research projects going forward.

The Queensland Government is contributing a grant of AUD1.5 million towards the AUD7.75 million project, which will feature the 1.2 MW solar PV installation, and will be capable of producing 1,750 MWh of electricity a year.

"The Australian solar market has enormous potential and Trina Solar is pleased to be selected by TheUniversity of Queensland to be a partner in this significant project installation," said Ku Jun Heong, Director of Sales and Marketing Asia Pacific. "We are proud to be supplying modules to the largest and most powerful rooftop solar arrays in Australia and we believe this marks the beginning of a promising future for large-scale solar energy in Australia."

"The UQ solar power installation represents the leading edge of commercial and industrial scale solar energy in Australia. The University will substantially reduce its carbon footprint and provide an excellent learning facility for the future leaders in the renewable energy industry," said Ingenero CEO Steve McRae.

Professor Paul Meredith, who leads the research project at the University of Queensland said: "Not only is this array a significant piece of energy infrastructure for UQ, but it also represents a globally leading research and teaching facility. Our objective is to integrate the array into everyday business across UQ and also provide the community, industry and government with vital information on how to deploy and optimize solar energy systems at this scale. We are looking forward to building productive and expansive research partnerships with Ingenero and Trina Solar. "

Trina Solar Announces Supply Agreement with Southern California Edison

CHANGZHOU, China, June 9 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (NYSE:TSL - News) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic (PV) products from the production of ingots, wafers and cells to the assembly of PV modules, today announced that its subsidiary, Trina Solar (US) Inc., has signed a supply agreement with Southern California Edison ("SCE"), an Edison International Company (NYSE:EIX - News), one of the largest electric utilities in the United States. Initial shipments commenced in May 2010.

Under the terms of the agreement, Trina Solar is expected to supply SCE with 45 MW of PV modules at agreed prices with deliveries taking place between the second quarter of 2010 and the first quarter of 2011. The modules are expected to be used in SCE's large solar photovoltaic installation program, otherwise known as the SCE Solar PV Program.

SCE, authorized by the California Public Utilities Commission (CPUC), plans to cover up to 65 million square feet of unused Southern California commercial rooftops with 250 MW of the latest photovoltaic technology, which has sufficient capacity to meet the needs of approximately 162,000 US homes.

"This program is a milestone in utility-owned PV generation in the United States and Trina Solar is excited to play a significant part in supplying modules representing approximately 20 percent of the solar capacity needed for the program," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "This is a major commitment by SCE towards clean power generation, and the fact that they have chosen Trina Solar to supply them with premium performance modules is expected to further increase the Company's global reach and reputation for high quality products and raise brand awareness among key customers in the commercial and utility PV segment."

"We look to innovative companies like Trina Solar for solutions that benefit the environment and our customers," said Mark Nelson, SCE director, Generation Planning and Strategy. "We're glad Trina Solar can be a part of California's clean energy future."

Trina Beats, But Day of Euro Fears Awaits

NEW YORK (TheStreet) -- Trina Solar(TSL) beat the Street consensus in its pre-market first quarter earnings report on Tuesday morning. It was another day of major market fears about the European Union, though, and most solar shares were trading down in the pre-market session.
On Monday, Yingli Green Energy(YGE) had reported a good first quarter with record gross margins, but Yingli shares ended Monday down again as the macroeconomic fears continued to dominate solar company fundamentals.As the euro slipped again in trading, Yingli stock was down 5% and Trina Solar stock down more than 7%, early in trading during Tuesday's pre-market session, though pre-market trading in solar shares can be very light.Trina Solar reported first-quarter earnings of 66 cents per share and revenue of $336.8 million. The Street was looking for earnings of 61 cents and revenue of $330 million.Trina Solar also outperformed on its own gross margin guidance, generating a gross margin level of 30.9% in the first quarter, above its previous estimate of a 26% to 28% gross margin. Lower polysilicon prices were responsible for the gross margin outperformance.Trina Solar also edged out its shipment guidance, delivering approximately 193 megawatts of modules in the first quarter, just above the high end of its previous guidance, which had been 190 MW.The big number in the Trina Solar earning report was the foreign exchange charge, as solar investors continue to worry about solar companies' ability to maintain earnings power in a declining euro environment, compounded by a declining feed-in tariff environment.Trina Solar had a loss in foreign currency exchange of $14.5 million in the first quarter. The forex loss was net of a gain in fair value of foreign currency hedge gains of approximately $13 million. The forex charge equaled a loss of 21 cents per share.Trina said it expected gross margins to fall to the high 20s in the second quarter, based on the current exchange rate between the euro and the dollar.Trina Solar tried to play down the European unrest in its earnings release, with its chairman, Jifan Gao, saying, "With regard to current macroeconomic concerns involving the European markets and the euro, we are still seeing strong demand for our products, and that our shipment flow to customers has not been negatively affected by credit availability or other related factors. We continue to expand and refine our internally-managed currency hedging program, which has been in place since the fourth quarter of 2008."Trina Solar reaffirmed its full-year guidance of 750 MW to 800 MW of module shipments, with between 200 MW to 205 MW of modules shipped in the second quarter. The Chinese solar company indicated that quarter by quarter through the end of the year the shipment level will increase, and in the second half of the year, more shipments will be going to the U.S.Trina also reiterated its plans to further reduce non-polysilicon manufacturing costs to 70 cents before the end of 2010.

Source:www.thestreet.com