SolarCity & REC Solar Expand Module Supply Agreement To 220 MW
Elon Musk’s solar system powerhouse SolarCity and the Norwegian solar energy provider REC Group recently announced that they will be expanding upon their earlier supply agreement — all the way up to the rather large figure of 220 MW worth of solar panel through 2015.
The new announcement follows rather closely on the heels of the initial agreement between the two companies, which was reached just back in June.
As per the terms of the new agreement, REC Solar will be providing its high-end Peak Energy solar panels to SolarCity at a set price — from the end of the third quarter of 2014 through Q4 of 2015.
The move follows on the heels of a number of other supply deals made by REC Solar in the US over the last few months. Altogether, the deals total arrangements for the sales of 385 MW worth of the company’s solar panels. The contracts are spread out amongst a wide variety of different commercial, residential, and utility-scale projects.
With these agreements in place, REC Solar will see somewhere around 313 MW of its panels shipped in the US — which is about 26% of the company’s 1.2 GW of expected production in for 2015.
While the numbers involved in the recent deal with SolarCity are on their own quite notable, the real takeaway from this is the potential inherent in such a partnership with SolarCity — given SolarCity’s great potential for explosive growth in the coming years. Keep an eye on this. (Especially if you’re an investor.)
“Our original panel supply contract with SolarCity called for a minimum of 100 MW with an option for up to 240 MW over the course of the year,” stated REC Group senior vice president and managing director of its North American business Arndt E Lutz. “The rapid adoption of the increased volume demonstrates the successful start of the relationship between the two companies.”
Image Credit: REC Solar
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