Canadian Solar Inc. (NASDAQ:CSIQ), one of the world’s largest solar power companies, announced that effective June 1, the company has been offering a new upgraded warranty on its polycrystalline photovoltaic modules by guaranteeing a lower first year power output degradation, less than 2.5%. This is in contrast to the industry standard of 3% degradation during the first year.

All Canadian Solar standard modules have a 10-year limited product warranty on material and workmanship.  In addition, the following are the new warranty policies related to power performance:

  • For polycrystalline module products, Canadian Solar guarantees the first year power degradation is no more than 2.5% from its nameplate power. From year 2 to year 25, the actual power decline will be no more than 0.7%. By the end of year 25, the actual power output will be no less than 80.7% of the nameplate power output.
  • For the Diamond double-glass module, Canadian Solar guarantees the first year power degradation is no more than 2.5% from its nameplate power. From year 2 to year 30, the actual annual power decline will be no more than 0.5%.  By the end of year 30, the actual power output will be no less than 83% of the labeled power output.

In the past 15 years, Canadian Solar has invested heavily into solar cell and module technology research and development. This warranty upgrade is based on internal and external PV system performance test results.

The performance warranty for standard monocrystalline cell modules will continue to be 3% degradation for the first year, and 0.7% power loss from year 2 to year 25. With Czochralski-type (CZ) wafer quality improvement, Canadian Solar will be able to roll out a similar enhanced performance warranty for monocrystalline cell modules in the future.

Dr. Guoqiang Xing, Vice President of Technology of Canadian Solar, commented, “As a major module manufacturer, we are proud to offer the industry’s leading warranty on solar panels.  Our ability to provide such a comprehensive and top-notch warranty is a strong indicator of the company’s bankability, success, and product reliability.” (Original Source)

Shares of Canadian Solar closed yesterday at $33.41 . CSIQ has a 1-year high of $41.12 and a 1-year low of $18.68. The stock’s 50-day moving average is $34.98 and its 200-day moving average is $29.52.

On the ratings front, Canadian Solar has been the subject of a number of recent research reports. In a report issued on June 1, FBR analyst Aditya Satghare reiterated a Buy rating on CSIQ, with a price target of $45, which implies an upside of 34.7% from current levels. Separately, on May 19, Roth Capital’s Philip Shen reiterated a Buy rating on the stock and has a price target of $46.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Aditya Satghare and Philip Shen have a total average return of -1.0% and -5.1% respectively. Satghare has a success rate of 64.7% and is ranked #2820 out of 3623 analysts, while Shen has a success rate of 40.4% and is ranked #3473.

Canadian Solar Inc is a solar power company. The Company designs, develops and manufactures solar wafers, cells and solar power products.