Renta 4| Solaria (SLR), through a CNMV (National Securities Market Commission) filing, has announced the acquisition of 500MW of photovoltaic modules at a price of €0.09.3 per watt from a Tier 1 manufacturer, which represents a 62% decrease compared to last year’s prices.
Assessment: Positive. After 2 years of inflation, the main materials that make up the photovoltaic parks have resumed the downward trend in costs. The price paid by Solaria for the acquisition of photovoltaic modules is a new historical low, falling below 10 cents per watt for the first time. This reduction in capex will result in higher returns for photovoltaic energy projects, offsetting the increase in financing costs.
Following the excellent performance of Solaria’s share price in previous months, we have downgraded our recommendation from OVERWEIGHT to HOLD, with a P.O. of 18.3 eur/share.
