In their PV Module & Inverter Bankability 2020 report published on 13th August 2020, BloombergNEF investigated module bankability of products and technologies offered by 49 global solar module manufacturers with a survey among key PV stakeholders. The objective was to assess which module brands used in projects are most likely to obtain non-recourse debt financing from commercial banks. Survey respondents included banks, funds, solar engineering contractors, independent power producers and technical advisors from all around the world.
Basis parameters such as product quality, long term reliability, field deployment performance, and the manufacturer’s financial strength were surveyed. 100% of survey respondents have rated LONGi (and its products and services) as fully bankable. LONGi emerged as a top solar brand in term-loan financed projects. Survey results reflect that projects using LONGi modules have been able to secure long-term debt financing with a greater ease. A key highlight of the report is that bifacial modules (which are the lead products offered by LONGi) has been ranked as highly bankable by all survey respondents, showing that bifacial technology has emerged as a standard in the global solar industry.
LONGi’s bankability in the survey has gone up rapidly from a rating of 67% in 2018 to 100% in 2020, which is not only a result of the company’s improved comprehensive strength, but also reflects the recognition of the LONGi brand by customers all over the world.
LONGi modules are recognized as bankable by 100% of respondents thanks to its strong financial health and track record. Key factors that have contributed to this feat are LONGi’s continuous efforts in advancing technology, improving product quality and efficiency, and its business philosophy of “expanding production only with leading products”, which dictates that each new capacity is matched to new upgrade of product technology.
Highest Altman-Z Score amongst pure play PV manufacturers
BloombergNEF in their BNEF 3Q 2020 Global PV Market Outlook report rated LONGi the most financially secure solar manufacturer with the highest Altman-Z score amongst pure play solar manufacturer. Bankability, as defined by BNEF, refers to the willingness of a bank to provide a term loan to a project that uses a specific module brand. This in part is quantified in terms of Altman-Z score, which measures a manufacturer’s financial stability. The higher the score, the more financially strong a company is and hence, the better the bankability. BNEF 3Q-2020 report rated LONGi an Altman-Z score of 3.27, the highest in the world amongst all solar manufacturing companies.
LONGi has the largest annual capacity of PV module manufacturers meeting BNEF’s Tier 1 Criteria in 3Q-2020
BNEF defines Tier 1 brands as those which have supplied projects backed by at least six commercial banks in the last 2 years. The main criterion is bankability. LONGi is listed in BNEF 3Q 2020 Global PV Market Outlook as a Tier 1 manufacturer with the highest annual capacity of 20,000 MW/ year.
LONGi is not just the largest global module manufacturer, but also the largest wafer manufacturer. BNEF has highlighted LONGi’s successful and forward-looking strategy to mitigate any supply chain risks that are otherwise commonly encountered by several players in the sector. The ongoing polysilicon crunch, though temporary, has been painful for several downstream manufacturers. But LONGi has been successful in securing its raw material supply for a much longer term.
“As one of the leading global PV technology company, we are delighted to be rated as the most bankable module brand with the highest Altman-Z score. This is a recognition of the power generation performance, reliability and advancement of LONGi’s PV modules. It is also a testimony to the outstanding efforts of LONGi team and our customers’ confidence in LONGi’s technology leadership,” said Mr. Dennis She, VP of LONGi Solar. “LONGi is committed to pushing forward the decrease of the LCOE while improving its module bankability in the photovoltaic industry through continuous innovation. We believe that high-quality products will help our customers as well as their investors maximize returns.”
Being the most innovative PV technology company, LONGi has constantly been working towards developing and delivering high efficiency, high reliability and high-quality modules. For instance, it has taken the lead in large-scale application of high-efficiency PERC technology, promoting the industrial application of PERC technology, rapidly improving product efficiency and greatly reducing the levelized cost of energy. Mono-crystalline PERC modules produced by LONGi have ranked first in the global sales for many years.
Meanwhile, the company has established a complete customer service standard for all its customers, fully committing to best-in-class service. While doing so, LONGi has maintained its ability to manage risks and cope with market changes, giving priority to its financial health and operational strength.
Source: LONGi Solar