Positives—export growth; rising concerns mainly from material price hike We present key industrial data in our monthly China Industrials Chartbook. The positives for December 2025/January 2026 include resilient construction machinery/HDT sales, mild automation orders and a pick up in shipbuilding orders, largely in line with 2026 full-year guidance (GCC takeaways) from various management. We note some progress in new fields. Negatives include soft infrastructure FAI, rising raw material prices pressuring in ...

Flash | 26 Jan 2026 03:14:32 ET │ 10 pages Ningbo Deye Technology (605117.SS) Potential Beneficiary of the "Warm Homes Plan" in the UK CITI'S TAKE Deye's share price rallied today, 26 Jan, boosted by news about the "Warm Homes Plan" released by the UK gov't. According to the plan, the UK gov't has budgeted £15bn to help up to 5m families to cut energy bills through the installation of solar panels, batteries and heat pumps. It aims to add solar systems for up to 3m new households by 2030E. We estimate the p ...

Core Insights - BayWa r.e. has secured financing for the Jacumba Valley Ranch (JVR) Energy Park, a solar-plus-storage project in San Diego County, California, with total funding commitments of approximately $416 million [1] - The JVR facility will feature 90 MWac/127 MWdc of solar capacity and 70 MWac/280 MWh of battery storage, expected to commence commercial operations in 2026 [1] - The project is considered one of Southern California's significant renewable energy infrastructure investments and will supply power through San Diego Community Power [1] Financial and Investment Details - The financing includes a construction-to-term loan facility led by Société Générale and preferred equity investments from Wafra Inc. and Acadia Infrastructure Capital, L.P. [1] - Wafra's investment aims to provide creative capital solutions for large-scale power projects [1] - The project has a signed tax credit transfer agreement with a large, unnamed corporate buyer [1] Economic and Community Impact - Construction of the JVR Energy Park is expected to create over 350 union construction jobs and long-term operational roles [1] - BayWa r.e. has committed $4 million in direct investment to the Jacumba Valley area, guided by local community input [1] - The project includes a fire protection agreement designating land for a new fire station and a 435-acre biological open space easement, avoiding sensitive habitats [1]

Core Insights - Canadian Solar Inc. (CSIQ) has received a Development Consent Order for the Tillbridge solar and battery energy storage project in Lincolnshire, England, marking a significant milestone in its UK growth strategy [1][9] - The project will integrate 800 MW of solar PV with a 500 MW/1,000 MWh battery energy storage system, expected to generate approximately 857.6 GWh of clean electricity annually, enough to power nearly 300,000 UK homes [2][9] - The facility is projected to avoid over 15 million tons of CO2 emissions over its lifetime, contributing to both national and local energy supply and environmental benefits [3][9] Benefits of the Project - The Tillbridge project will enhance the UK's supply of reliable, low-carbon energy while providing community and environmental improvements [3] - Once operational, it will rank among the largest hybrid solar-plus-storage facilities in the UK [3] Market Context - The energy storage market in Europe is expected to grow at a CAGR of 18% from 2025 to 2030, which aligns with Canadian Solar's strategy to expand its presence in the region [4] - Other companies, such as Fluence Energy, SolarEdge Technologies, and Enphase Energy, are also increasing their footprint in Europe to capitalize on the growing battery storage market [6][10] Competitive Landscape - Fluence Energy plans to develop Europe's largest battery energy storage system, a 1 GW/4 GWh project in Germany, with a projected revenue increase of 51.3% for fiscal 2026 [7] - SolarEdge Technologies is well-positioned in Europe, particularly in Germany, with a projected revenue increase of 25.4% for 2025 [8] - Enphase Energy is expanding its European presence with new product launches, expecting a revenue rise of 9.4% for 2025 [10] Stock Performance - Canadian Solar shares have increased by 134.2% over the past six months, outperforming the industry growth of 48.2% [11]

Core Insights - Recurrent Energy has received a Development Consent Order for the Tillbridge solar and battery energy storage project in Lincolnshire, England, which is a significant step in its UK growth strategy [2][6] Project Overview - The Tillbridge project will integrate 800 MW of solar photovoltaic (PV) capacity with 500 MW / 1,000 MWh of battery energy storage [2][3] - Once operational, it is expected to be one of the largest hybrid solar and storage facilities in the UK [3] Environmental Impact - The facility is projected to generate approximately 857.6 GWh of clean electricity annually, sufficient to power nearly 300,000 UK homes [4] - Over its lifetime, the project will prevent more than 15 million tonnes of CO2 emissions [4] - It is anticipated to provide a minimum of 64.44% net biodiversity gain for local habitats and improve green infrastructure connectivity [5] Economic Benefits - The project is expected to create around 1,250 jobs during the construction phase [4] - It aims to enhance local recreational trails and provide community benefits [5] Company Background - Recurrent Energy, a subsidiary of Canadian Solar Inc., is a leading global developer of solar and energy storage assets, with a global pipeline of approximately 23 GWp of solar power and 73 GWh of energy storage capacity as of September 30, 2025 [7] - The company has successfully developed, built, and connected 12 GWp of solar projects and over 5 GWh of energy storage projects across six continents [7]

Core Insights - Enlight Renewable Energy has secured a tax equity partnership with Wells Fargo for its Quail Ranch project in New Mexico, marking its fifth such partnership in the U.S. and bringing the total value of its U.S. tax equity arrangements to nearly $1 billion [1][5]. Project Overview - The Quail Ranch project consists of 128 MW of solar generation capacity and 400 MWh of energy storage, with a total investment of $275 million. It is expected to achieve commercial operation by the end of 2025 [3][4]. - Once operational, the project is projected to generate approximately $24 million in annual revenues and an EBITDA of around $17 million in its first full operating year [3]. Financial Details - Under the agreement, Wells Fargo will provide tax equity financing, including an initial contribution of $131 million, which is expected to rise to nearly $150 million over the first 10 years of operation [2][5]. - The financing will enable the project to benefit from production tax credits (PTC) for the solar component and investment tax credits (ITC) for the storage component, along with qualifying for a 10% Energy Community Adder under the Inflation Reduction Act [5]. Strategic Importance - The project is supported by a 20-year busbar power purchase agreement (PPA) with Public Service Company of New Mexico (PNM), ensuring stable, long-term revenues [4]. - The partnership with Wells Fargo is seen as a significant step in scaling Enlight's U.S. platform and reflects the strength of the project and the robustness of its portfolio strategy [6].

Summary of Sungrow Power Supply Co. (300274.SZ) Earnings Call Company Overview - **Company**: Sungrow Power Supply Co. (300274.SZ) - **Industry**: Clean Energy & Technology, specifically focusing on solar inverters and energy storage systems (ESS) Key Financial Results - **3Q25 Results**: - Revenue: Rmb22,869 million (+21% YoY) - Gross Profit: Rmb8,202 million (+47% YoY) - EBIT: Rmb5,023 million (+62% YoY) - Net Income: Rmb4,147 million (+57% YoY) - Gross Profit Margin (GPM): 36% (+6pp YoY) - Operating Profit Margin (OPM): 22% (+6pp YoY) - Net Profit Margin (NPM): 18% (+4pp YoY) - Compared to Goldman Sachs Estimates (GSe): Revenue -5%, Gross Profit +12%, EBIT +12%, Net Income +8% [1][20][21] Growth Drivers - **Energy Storage Systems (ESS)**: - Sales increased by 105% YoY in 1-3Q25, reaching Rmb28,800 million - 3Q25 sales were Rmb10,997 million (+78% YoY) - Total shipment reached 29GWh in 1-3Q25, with 83% from overseas markets [2][19] - **Solar Inverters**: - Sales increased by 6% YoY in 1-3Q25, totaling Rmb23,400 million - 3Q25 sales were Rmb8,073 million (+3% YoY) despite a significant decline in domestic solar installations [18] Market Outlook - **2026E Global ESS Installation Growth**: Expected to grow by 40%-50% driven by: - Higher renewable energy mix - Diversifying revenue mechanisms - Rising demand for grid stability and data center power [19] - **US Market Uncertainties**: - Ongoing uncertainties for ESS projects starting after January 1, 2026, due to One Big Beautiful Bill Act (OBBBA) restrictions - Management anticipates US ESS shipments of 13GWh in 2025E and 17GWh in 2026E [19] Strategic Initiatives - **AIDC Power Products**: - R&D on AI data center power products, including solid-state transformers and high-voltage direct current systems - Initial product launch and small-scale delivery targeted for 2026E, but no significant financial contribution expected in the near term [17] - **Supply Chain Optimization**: - Addressing OBBBA restrictions and ensuring supply chain efficiency for ESS projects [19] Financial Projections - **Revised Net Income Forecasts**: - 2025E-30E net income forecasts raised by 6% on average - 12-month target price adjusted to Rmb162.3 from Rmb148.9, reflecting solid global ESS outlook and GPM improvement [20][24] Risks and Challenges - **Domestic Solar Demand**: - Anticipated 0% to -20% growth in inverter and solar EPC sales in 2026E due to headwinds in the Chinese market [20] - **Regulatory Risks**: - Trade conflicts and OBBBA restrictions may impact long-term ESS business, which constitutes 32% of total sales [24] Conclusion - **Investment Rating**: Neutral - **Key Factors**: The balance of risks and rewards at the current stock price, with ongoing monitoring of global trade policies and company strategies to mitigate tariff impacts [24]

Core Insights - Bridge Renewable Energy (BRE) has successfully closed a portfolio financing of $80 million in a delayed draw term loan facility and $5 million in a revolving credit facility, aimed at supporting the development of solar and energy storage projects across nine U.S. states [1][2][3] Financing Details - The financing structure includes a construction-to-term loan, preferred equity bridge loan, and tax credit bridge loan capacity, specifically designed to support a 40 MW portfolio comprising 42 community solar and commercial and industrial solar projects [2][3] - The financing is arranged by Investec Bank, with participation from Amalgamated Bank and Farmer Mac, highlighting the collaborative effort in securing capital for renewable energy projects [1][3] Industry Context - The transaction underscores the challenges faced by distributed solar and energy storage sectors in accessing efficient capital, emphasizing the need for innovative financing solutions to accelerate deployment in the U.S. [3][4] - Energetic Capital's EneRate Credit Cover® policy is utilized to mitigate offtaker credit risk, showcasing the importance of risk management tools in renewable energy financing [3][4] Company Background - Bridge Investment Group, the parent company of BRE, manages approximately $50 billion in assets as of June 30, 2025, and focuses on specialized asset classes, including renewable energy [8] - Investec Bank, a key partner in this financing, operates in multiple regions and is dedicated to creating long-term value for stakeholders, reinforcing its commitment to sustainable investment practices [9]

Core Insights - Cypress Creek Renewables has achieved financial close on the Sundance Solar and Energy Storage hybrid project in Elbert County, Colorado, which includes 75 MWac of solar capacity and a 50 MW/200 MWh battery energy storage system [1][4] - The project aims to provide energy sufficient to power approximately 25,000 homes in Colorado, supporting the state's clean energy objectives [2] Company Commitment - The CEO of Cypress Creek Renewables emphasized the company's long-term commitment to Colorado, highlighting plans for further investments that will create jobs, generate local tax revenue, and provide reliable energy [3] - The project is expected to create up to 250 construction jobs and generate over US$9.5 million in property tax revenue over its 40-year operational life [3] Community Engagement - Cypress Creek has established a community working group in Elbert County to oversee the allocation of US$300,000 in direct community investment, ensuring a positive local impact [3] Financial Aspects - MUFG Bank Ltd. coordinated approximately US$190 million in construction financing for the project, with participation from BNP Paribas, DNB Bank ASA, and Santander [4] - Fifth Third Bank is acting as the tax equity investor for the project [4] Future Outlook - The Sundance Solar and Energy Storage project is projected to commence commercial operations by late 2026, contributing to Colorado's clean energy supply for decades [5]

Core Insights - Enlight Renewable Energy's U.S. subsidiary, Clēnera Holdings, has secured two tax equity partnerships for the Roadrunner Solar and Energy Storage Project in Arizona, with financing from J.P. Morgan Chase Bank, M&T Bank, and First Citizens Bank [1][2][4] Financial Commitments - The total commitments for the project amount to $340 million at commercial operation, expected to rise to nearly $390 million with additional contributions [2] Project Overview - The $621 million Roadrunner project is set to produce test energy and aims for full operation by the end of 2025, projected to generate over $50 million in annual revenue and approximately $40 million in EBITDA [3][4] Tax Incentives and Agreements - The solar unit qualifies for Production Tax Credits, while the storage system will benefit from Investment Tax Credits, and the project is expected to qualify for a 10% Energy Community Adder [4] Strategic Importance - Roadrunner is backed by a 20-year power purchase agreement with Arizona Electric Power Cooperative, and its co-located design enhances grid reliability and flexibility, aligning with the company's U.S. growth strategy [4][5] Industry Impact - M&T Bank's Managing Director highlighted Roadrunner as a significant development for co-located solar and storage in the U.S., emphasizing its role in strengthening grid resilience [5] Global Expansion Strategy - Enlight is accelerating its global growth, recently winning a major tender for a green data center in Israel with an investment plan of up to $1.1 billion, showcasing its strategy of integrating renewable energy with infrastructure projects [6] Future Outlook - The incoming Clēnera CEO noted the rising demand for clean energy in the U.S. and the company's capability to deliver large-scale solutions, with plans to expand its portfolio supported by long-term agreements with investment-grade customers [7]