Chinese solar-panel maker Canadian Solar (NASDAQ:CSIQ) today announced plans to open a manufacturing plant in Ontario, Canada. According to the company press release, the facility will be capable of producing 200 megawatts (mWs) of solar modules each year and is expected to create 500 local manufacturing jobs. Investors responded positively, initially driving shares up about nine percent in early trading.
Since establishing a feed-in tariff (FIT) earlier in the year, the government of Ontario has witnessed increased interest in solar and other forms of renewable energy. In brief terms, a FIT pays owners a premium price for the electricity generated by their solar energy system, making it financially attractive to install solar panels. Canadian Solar’s move may be understood as an effort to take advantage of future growth in the Ontario solar market:
Canadian Solar’s manufacturing facility is expected to help drive Ontario’s emerging solar industry, which is growing rapidly as a result of the provincial government’s recently launched feed-in-tariff (FIT) program. “Our new facility will help expand “green” skilled jobs and investment in Ontario as well as the rest of Canada,” said Dr. Shawn Qu, Chairman and CEO of Canadian Solar Inc. “Additionally, with this facility, our leading-edge photovoltaic technology will be manufactured and readily available in Ontario for those who are ready to take advantage of the FIT programs.”
The Canadian Solar announcement comes after Suntech Power Holdings, China’s largest solar-panel maker, announced plans to open a production facility near Phoenix, Arizona.
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