Solar panel manufacturer Yingli Green Energy Holding Company Limited YGE or “Yingli Solar” received a contract to supply 40 megawatts (MW) of solar panels to Sybac Solar, a major global solar integrator in Honduras. The highly efficient solar panels will be utilized by Sybac Solar to develop two power plants, namely, the Pacific Solar project, located in Nacaome and the La Manzanilla y Las Lajas project, located in Choluteca. Thanks to the contract, shares of Yingli Solar gained 3.05% to close at $1.35 yesterday.

The company had earlier supplied solar panels to Sybac for the latter’s 24 MW Pavana Solar Park, also in Honduras.  The current agreement is therefore an extension of the existing business relationship between the two parties.

As for the 50 MW Pacific Solar project, Yingli Solar will supply 25 MW of panels for the first phase. The project will be developed by EM-Power Corporacion, a Guatemala-based Central American renewable energy company.  The first phase is expected to begin operations in Aug 2015 while the second phase is expected to come online in 2016.

Yingli Solar is also delivering 15 MW of solar panels for the first tranches of the La Manzanilla y Las Lajas project, which was developed by Energys de Honduras S.A. de C.V.

Both these projects will utilize high quality multicrystalline YGE 72 Cell Series panels. On completion, the projects will together utilize nearly 256,000 Yingli Solar panels. These panels are ideal for large scale solar farms due to their high efficiency and low installation costs.

Usage of renewable energy is increasing across the globe. Solar panel and module manufacturers from China are receiving a slew contracts to meet new project requirements. Solar module producer JinkoSolar Holding Co., Ltd. JKS has recently entered into a supply agreement with Vivint Solar VSLR, a leading provider of distributed solar energy to residential customers in the U.S.   

Yingli Solar currently has a Zacks Rank #4 (Sell). A better-ranked stock in the same space is SolarEdge Technologies, Inc. SEDG, currently carrying a Zacks Rank #2 (Buy).

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