ReneSola Power China DG Projects Approved for Incentive Payments

Rhea-AI Summary

ReneSola Ltd (NYSE: SOL) announced that ten of its rooftop projects in China were approved for incentive payments by the Ministry of Finance, expected in 2021. This decision supports China's goal for carbon neutrality by 2060. Additionally, 25 projects completed between August 2017 and May 2018 are eligible for a subsidy catalog. The company has 32 total projects under review, with payments for 10 projects totaling 28 MW confirmed. CEO Yumin Liu emphasized that these payments will enhance cash flow and boost the profitability of ReneSola's operating assets in China.

Positive

• Approval of ten rooftop projects for incentive payments will enhance cash flow.
• Support for China's carbon neutrality goal could lead to further opportunities.
• Potential for 25 projects totaling 49 MW to be included in subsidy catalog.

Negative

• 22 projects totaling 62 MW are still under review, creating uncertainty.

STAMFORD, Conn., Dec. 8, 2020 /PRNewswire/ -- ReneSola Ltd ("ReneSola Power" or the "Company") (www.renesolapower.com) (NYSE: SOL), a leading fully integrated solar project developer, today announced that China's Ministry of Finance recently approved ten of the Company's rooftop projects to receive incentive payments. The Company expects to receive payments in 2021.

In late November 2020, the Ministry of Finance proposed to review a backlog of renewable energy projects and qualify them in batches for subsidy payments. All qualified projects, specifically those that completed all necessary filings in or after 2006, will be registered. This indicates that the 25 projects totaling 49 MW —which ReneSola Power completed between August 2017 and May 2018 —can be incorporated into the Ministry's "subsidy catalog".

In early March 2020, the Ministry of Finance proposed to review renewable energy projects and incorporate them into the "subsidy catalog" in batches for projects that were completed before July 31, 2017 or those that had already obtained FIT price in 2019. ReneSola Power has a total of 32 projects in the first batch of qualified projects. Of the 32 projects, 10 projects totaling 28 MW were approved for payments, while the remaining 22 projects of about 62 MW are currently under review.

Mr. Yumin Liu, Chief Executive Officer of ReneSola Power, commented, "We applaud the recent decision by the Ministry of Finance in China to accept all qualified renewable energy projects for incentive payments. This decision adds support to China's new policy to get to neutral carbon emissions by 2060. These developments are positive for the solar power industry in China and will benefit project developers and other participants in the solar value chain. Importantly, the payments will enable ReneSola Power to generate strong cash flow, and improve the economics of the operating assets we own in China. We are committed to developing solar projects globally and remain optimistic about the growth prospects for the industry."

About ReneSola Power

ReneSola Power (NYSE: SOL) is a leading global solar project developer and operator. The Company focuses on solar power project development, construction management and project financing services. With local professional teams in more than 10 countries around the world, the business is spread across a number of regions where the solar power project markets are growing rapidly, and can sustain that growth due to improved clarity around government policies. The Company's strategy is to pursue high-margin project development opportunities in these profitable and growing markets; specifically, in the U.S. and Europe, where the Company has a market-leading position in several geographies, including Poland, Hungary, Minnesota and New York.

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SOURCE ReneSola Ltd.

FAQ

What recent approval did ReneSola Power receive regarding its projects in China?

ReneSola Power received approval for ten rooftop projects to receive incentive payments from China's Ministry of Finance.

How many projects are currently under review for incentive payments at ReneSola?

ReneSola has 22 projects totaling about 62 MW currently under review for incentive payments.

What is the expected financial impact of the approved projects for ReneSola in 2021?

The incentive payments from the approved projects are expected to generate strong cash flow for ReneSola in 2021.

How does the Chinese government's decision impact ReneSola's business strategy?

The decision supports ReneSola's strategy by enhancing the economics of its operating assets and encouraging further development of solar projects.

What is the total capacity of the projects approved for payments by the Ministry of Finance?

The approved projects have a total capacity of 28 MW.