SHANGHAI, Aug. 14, 2018 /PRNewswire/ -- ET Solar and Tunghsu Kangtu Solar ("Kangtu") have signed a strategic partnership agreement to cooperate and build on their advantages. Under the agreement, Kangtu will use its strong capital to support ET Solar's ability to receive large orders and fulfill contracts, and ET Solar will share its sales network with Kangtu, so that both parties can develop overseas markets together and deliver the best products and service to global customers.
Two months after Beijing announced its new policy to eliminate subsidies for most solar projects, the industry participants in China have gone through an unexpected drop in solar installations and are gradually recovering from the short-term disruption by increasing cooperation.
Analysts believe that the halting of installation quotas in 2018 for ground-mounted solar energy projects in China and limiting distributed solar activity to 10 gigawatts are set to have major industry implications given that the country accounted for 54% of global installations in 2017.
The measures will curb demand while adding margin pressure, encourage industry consolidation and drive aggressive export activity. Many Chinese solar module manufacturers have already released their promotion plan to overseas markets, however, two manufacturers have realized there is a better way to handle the present industry situation.
ET Solar - a BNEF Tier 1 company - has focused on the overseas markets since its founding in 2005, and now has a worldwide sales network with high brand reputation and recognition. ET Solar is also one of the few Chinese companies whose modules can offer clients high bankability from banks worldwide.
Kangtu was founded as a module manufacturer by Tunghsu Group - one of the largest corporations in China, has continuously invested in the renewable energy industry over the years.
In June 2018, Smart JADE, a photovoltaic alliance aimed at resolving short-term pressure and achieving coordinated development, was established. ET Solar and Kangtu are both founding members of the alliance. Through this increased overseas market cooperation, the relationship between the two companies will reach new heights
After years of development, China has become the world's largest green energy supplier, and is making great contributions to the global energy transformation. This cooperation between ET Solar and Kangtu will lead the way for the industry during this short-term disruption.