JinkoSolar (JKS) ink agreement with memo based in Europe – May 16, 2022

JinkoSolar Holding Co. Ltd. (JKS Free Report) recently signed an agreement with European company Memodo, marking its first-ever European energy storage solution agreement. This, in turn, gives Jinko Solar the opportunity to capitalize on the growing demand for energy independence in Europe.

In addition, the agreement, which includes an all-in-one system, a stackable low-voltage and high-voltage storage system and a single-phase or three-phase hybrid inverter, strengthens JKS’ position in the DA-CH region comprising Germany. , Austria and Switzerland for 2022 and 2023.

Growth Prospects for Jinko Solar in Europe

The increased adoption of renewable energy sources is driving demand for solar energy in Europe, as it is the most cost-effective route to achieving carbon neutrality. This, in turn, presents strong growth potential in the energy storage market, which could be key to Jinko Solar’s growth prospects.

Going forward, according to the Wood Mackenzie report, the European energy storage market is expected to grow 20 times between 2022 and 2031.

With an already established position with solar modules in the European solar market that offers an intriguing and optimistic growth opportunity, especially in the battery storage section, indicates strong prospects for JKS. Thus, the recent collaboration with Memodo gives JinkoSolar a competitive advantage in the European energy storage market.

Peer movements

To reap the benefits of the growth of the European solar market, several solar players are also giving their efforts.

In May 2022,Enphase Energy (ENPH Free Report) announced that Enphase engineers have approved the combination of Enphase IQ batteries with third-party inverters in Belgium and Germany to help meet the growing demand for energy independence in the region. Belgium and Germany remain two key and fast-growing European markets for Enphase products.

The Zacks consensus estimate for Enphase earnings in 2023 has been revised up 5% in the past 60 days. ENPH stock has risen 33.2% over the past year.

In April 2022, ReneSola (FLOOR Free Report) has announced that it has completed the sale of a 24 megawatt (MW) solar-plus-storage project in the UK to Innova. It is one solar and ground storage project among ReneSola Power’s pipeline of 200+MW projects with varying years of planned sales in the UK.

Zacks consensus estimate for ReneSola sales in 2022 indicates a growth rate of 39.5% over the figure reported the previous year. The Zacks consensus estimate for SOL earnings in 2023 suggests a solid growth rate of 103% from the estimated figure for the previous year.

In May 2022,Canadian Solar (CSIQ Free Report) has announced its entry into the UK utility scale energy storage market after signing agreements to provide integrated energy storage systems and engineering, procurement and construction services for four battery storage projects. Pulse Clean Energy owns the four projects over 100 megawatt hours (MWh).

The Zacks consensus estimate for Canadian Solar’s earnings in 2023 has been revised up 30.5% in the past 60 days. Zacks’ consensus estimate for CSIQ sales in 2022 suggests a growth rate of 37.7% over the figure reported the previous year.

Price movement

In one year, shares of JinkoSolar rose 67.5% against a 17.8% decline in the sector.

Image source: Zacks Investment Research

Zacks Rank

JinkoSolar currently carries a Zacks rank #5 (strong sale).

You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Mary I. Bruner