Compliance with EU-China trade deal critical issue for PV industry in 2014

Trina Solar expects strong year of growth ahead as UK market stabilises 

Zurich, 7th of November, 2013. Trina Solar Limited (NYSE:TSL) (“Trina Solar” or “the Company”), a global leader in photovoltaic modules, solutions and services, predicts stability and growth for the UK PV market in 2014. As the industry moves out of the uncertain times caused by the EU trade case, the minimum prices established and the reduced number of large PV providers will help return the market to calmer waters, with a renewed emphasis on quality and service. Detailed knowledge of the Undertaking agreement between the EU and China, and its implications for different market players, will, however, be a key factor in any future success stories.

Richard Rushin, UK Sales Manager, spoke at the Envirotech and Clean Energy Summit in London as part of a panel discussion titled Solar Energy: Re-adapting to a post-boom market. Commenting on the UK outlook for 2014, Richard said:

“The market outlook for the UK is one of the best in Europe so I am extremely positive about the opportunities for growth over the next 12 to 18 months.

“The EU-China solar trade agreement has changed the business landscape for solar companies. With a minimum pricing now in place, we are competing on quality and service. But there is also now a vital extra dimension in that both purchasers and manufacturers face stiff penalties if they breach the pricing agreement, something that could inadvertently happen without due care and attention. These penalties mean that purchasers must conduct due diligence on a provider’s back-office compliance team to ensure business security.

“We have already seen a third of Chinese companies previously trading with the EU pull out of the market since the agreement was made, largely due to the increased administrative burden. I expect even more will cease to operate in the European market through 2014.”

The agreement reached between the European Commission and the Chinese Chamber of Commerce over the summer set a minimum price for Chinese manufactured solar panels of 56.28 Euro Cents/W. Failure to meet this minimum price will result in heavy penalties and the application of punitive tariffs of 47.6 per cent.

Rushin continues:

“Getting the calculation wrong on panel pricing carries potentially disastrous results for UK installers and distributors. Choosing a solar PV provider who has the administrative support and detailed understanding of the agreement reached between the two trading regions has rapidly become a priority for UK solar businesses.”

“The big winners of 2014 will be the large solar providers that can guarantee consistent levels of supply, who have the track record and commitment to the UK market and who have really grasped the level of support needed to navigate the EU-China agreement effectively.”

During the Envirotech panel discussion, Richard also highlighted the importance of evolving technology. Innovation will form a key differentiator for the market, with a special focus on reducing BOS cost and improving the output and profitability of PV. Trina Solar has recently introduced Trinasmart to the UK – a performance optimiser integrated into the company’s monocrystalline Honey M module range as well as the utility-scale PC14. It enables the monitoring and control of arrays at a modular level and increases system performance by up to 20 per cent. Trinasmart comes with free real-time online access and the ability to switch off the entire array with a single click in case of emergency. Trinasmart works with all kinds of inverter, does not require extra wiring, and makes it possible to run up to 30 per cent longer module strings.

“Innovations such as Trinasmart, and our longstanding commitment to, and experience in, the UK, will be a powerful combination for the solar industry in 2014,” Rushin concluded.

 

 

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 About Trina Solar Limited

 

Trina Solar Limited (NYSE:TSL) is a global leader in photovoltaic modules, solutions and services. Founded in 1997 as a PV system integrator, Trina Solar today drives smart energy together with installers, distributors, utilities and developers worldwide. The company’s industry-shaping position is based on innovation excellence, superior product quality, vertically integrated capabilities and environmental stewardship. For more information, please visit www.trinasolar.com.

 

 

For further information, please contact:

 

Trina Solar Limited

Brunswick Group

Yvonne Young, Head of Investor Relations

Ilse Schache

Phone: ( 86) 519-8517-6878 (Changzhou)

Phone: (86) 10-6566-2256

Email: ir@trinasolar.com

Email: trina@brunswickgroup.com

 

Commercial enquiries:

 

Trina Solar Europe

Michael Katz

Phone: (49) 89 12284 9260

Email: michael.katz@trinasolar.com