Group Project

Case: CANADIAN SOLAR

Presented by: Kavita Rawat Abhinav Rampal Mahi

Presented to: Professor Patrick Ellwood

Course: Global Research & Analysis (SEC 103)

Centennial College, Progress.

Date: 4th August 2013

Global Facts Matter Inc. 941 Progress Avenue Toronto, Canada M1G 3T8 March 23, 2012 Mr. Shawn (Xiaohua) Qu Chairman, President & CEO, Canadian Solar Inc. 545 Speed vale Avenue West Guelph, Ontario N1K 1E6 Dear Mr. Qu: We are pleased to have the chance to present our research report before you. designing a research for your unique business is not only exciting but also placed importance given the fact that sustainable variety of energy systems are becoming the need of the time. With this proposal we would like to present that our corporation will carry out detail research for the scope of photovoltaic goods industry using its well-equipped expertise. With this research we will be able to offer you with descriptive analysis with highest reliability and reasoning for your company to obtain momentum with recent expansion plans. We would appreciate any feedback or recommendation that you may provide. Generously reach us at researchers@gfminc.ca or +1 416-647-3856. Thank you for your time. Regards,

R. H. Raj
R. H. Raj Director of Global Facts Matter Inc. Email: researchers@gfminc.ca Tel: (+1) 416-647-3856

Table of Contents
Executive Summary........................................................................................................... Introduction...................................................................................................................... Background...................................................................................................................... Business Opportunity........................................................................................................ Research Objectives......................................................................................................... Methodology................................................................................................................... Data Analysis..................................................................................................................... Data Interpretation............................................................................................................. 3 3 4 4 5 6 6 7

Business Implications......................................................................................................... 8 Conclusion........................................................................................................................ References.......................................................................................................................... Credits............................................................................................................................... Appendix............................................................................................................................ Appendix I.............................................................................................................. Appendix II............................................................................................................ Appendix III.......................................................................................................... 8 10 11 13 13 14 15

Executive Summary

With the increase in demand of the solar product globally, its production is also increasing. Most of the nations use these products for sustainable growth, as it is an alternative form of energy. This report provides an analysis and assessment of how Canadian Solar can exploit more countries to trade its product. By performing additional analysis for Canadian Solar, the findings were that the Philippines and Netherlands both are a very wise decision for Canada solar utility to trade residential solar energy sections and photovoltaic or pv items. But the best between both of them would be and which we suggest is the Netherlands. The Netherlands government is assisting the trade between the two nations by reducing the taxation for energy products such as energy tax, sales taxation, and excise tax and on VAT too. The nation is already moving a lot towards electricity and even people are more thoughtful about the environment. They use bike for travel instead of vehicles and also car-pooling is becoming famous among the citizens of this nation. We have performed additional analysis to pay attention to our primary objective, i.e. to manipulate new markets to trade residential solar energy sections and photovoltaic or pv items. After performing this analysis we found that there is more home based company present in the Netherlands. Our technique will be to make a analysis design collecting primary as well as additional information. By using the research and decoding the information, the results were that Netherlands has been building a powerful position in the areas of solar energy heating and PV solar energy panel technology. To further explain our points and to pay attention to the demand of the nation we have surrounded various maps and blueprints in the appendix.

Introduction

Canadian solar energy is a organization that provides solar energy sections, solar energy segments, solar energy systems and other solar energy items. They provide top quality items to large companies worldwide. They conform to all the top quality requirements that are set for electricity items i.e. IEC, TUV, UL and ISO:TS16949. (Canadian Solar, 2013). Also, it runs its company in nine nations with an effective prospectus to create in other nations as well with an effective financial support.

Philippines and Netherlands both are a very wise decision for Canada solar utility to trade residential solar energy sections and photovoltaic or pv items. Malaysia has a very attractive location i.e. above the equator so the nation has several months of summer. The ideal locations in Malaysia are the northern aspect that produces 4.5 to 5.0 kWh/m2/day and also the southern aspect which produces 5.0 to 5.5 kWh/m2/day. (Industry Studies Department, 2012) It also applied Investment strategies Main concerns Plan (IPP) in 2009 to apply more energy projects in the nation.

Another nation is Netherlands, in this sun provides a huge resource for alternative energy source. Presently, solar energy central heating boilers heat domestic water in around 15,000 houses and they are planning to increase this number to 400,000 by 2014. (Zanten, 2013) So, Neatherland is the best recommended nation to which the Canada Solar should trade, as there is still requirement of investment to create analysis and development in Photovoltaic solar energy panel technology (PV) and they are motivating investments in residential solar energy sections and tissues. Moreover the Netherland government is giving reduction up to 36 percent of the allinclusive costs that is spent in ecological helpful resources. Also, the advantage of investing in ecological helpful resources is that the capital spent in green funds is free from personal income tax. (Taxes and rewards for Renewable energy, 2011). To show how the Canada Solar can advantage by dispatching its items to this nation, we have made use of many research and performed additional analysis. Background Canada is a major manufacturer of solar power in the world. It is dispatching residential solar power sections and other relevant solar power panel technology items to various nations such as Chinese suppliers, USA, Japan, etc. While Canadas collective amount of international solar power PV potential dropped from 0.5% in 2000 to 0.2% in 2008, it increased to 0.7% by the end of 2011. (Young, 2012) The growth of the Canada industry from 2008 to the end of 2011 is predicted to continue to speed up. So, there are many marketing possibilities present there in Canadian market from which Canada Solar can get benefits by providing its items. In order to perform our analysis about dispatching residential solar power sections and techniques in Netherland and Philippines, we will use reliable sources such as NEB i.e. Nationwide Power Panel of Canada. From this we will get to know that how much is the provide and requirement of solar power panel technology in Canada and other nations. It will also help us in doing our analysis about the charges and other business guidelines in other nations to which Canada Solar may export. Other sources would be EDC i.e. Export Development Canada that would offer us with useful information regarding the imports and exports and also various guidelines existing in Canada for dispatching Solar sections, solar power techniques etc. in international nations.

We are also talking to KPMG website as they offer review and other advisory services required for dispatching items from Canada.

Business Opportunity Canada has numerous solar energy panel technology sources, with the most comprehensive sources being found in Ontario, Canada. Canadian solar energy was founded in 2001 in Ontario, Canada, by Shawn Qu, which is one of the world's largest solar energy companies. Its headquarters are in Guelph, Ontario and seven wholly owned manufacturing subsidiaries across China, and operates its solar energy PV business in nine nations across the world with a total of 260,000 sqm of facility space (Canadian Solar, 2012). Their businesses are in Canada, China, Germany, Italy, Japan, Korea, Spain and USA Canadian solar focuses on delivering the finest quality solar energy item at the biggest possible returns to their clients around the world and have their business in Canada, China, Germany, Italy, Japan, Korea, Spain and USA. Canada solar energy mainly produces its sections in China which allows it to obtain strength conduct business globally by achieving economies of scale by producing in bulk resulting into low price. The Netherland is a very vast nation having inhabitants around 16,730,632 is one of the nations in which requirement of solar energy items is improving. Since 2005 the requirement of solar energy PV kept on improving and it went up to 130 Mwp this year from 50.7 Mwp in 2005. Recently, by observing the businesses of solar energy PV items in Netherlands, Canadian solar energy signed an contract with Power Analysis Centre of The Netherland which result in conversion of tissues more efficiently in excess of 20% to as high as 25% after the completion of this contract. (PR Newswire, 2013). The Netherlands federal govt grants financial assistance and discounts and there is as such no hard guidelines from the govt of The Holland. The govt is also supporting the trade between the two nations by reducing the taxation for electricity items such as product sales taxation, energy tax, and excise tax and on VAT too. Manufacture of highefficiency tissues and higher energy segments can reduce manufacturing and installation costs, both of which are critical in making the solar energy PV items more cost-effective for the clients. (KPMG, 2011) The Philippines, basically known as the Republic of the Philippines, is a sovereign state in Southeast Asia in the western Pacific Ocean. The nation with the inhabitants of 88,574,614 people and GDP $189,901,000,000 (Openei,2011) have a great prospective for the company prospect in solar energy industry. The value of solar energy prospective in 2008 was 792,147,408(NREL). The main areas to concentrate in the nation are southeast and northern parts. Moreover, the nation also offers various financial assistance and discounts on taxation on imports and exports. They provide feed in tariff and quotas for electricity standards.

Research Objectives: 1 To examine how Canadian Solar can use the businesses of dispatching photovoltaic segments and solar energy techniques in the new untapped marketplaces of Netherlands and Philippines.

2. Identify which of the two prospective marketplaces will be more successful and/or successful in the short run and long run basis. 3. Recognize the effect of early entry into the recently found industry and minimize industry barriers for residential solar energy sections produced by Canadian Solar. 4. To determine and evolve to the guidelines regarding distributing PV segments and PV techniques from Canada into prospective industry of Netherlands and Philippines.

5. To justify that the new industry has a prospective requirement for photovoltaic or pv segments and photovoltaic or pv techniques so that Canadian Solar can be successful in that industry. 6. To recognize the technological, economic and political scenarios of the recently found international industry to maximize penetration into these nations.

Methodology For the collection of this report we have used Secondary sources. Main means have been kept to last resort owing to money constraints. However we have optimized the use of additional sources available to us. Canadian Solars core competency lies in the development of PV segments and i nstallations of PV techniques. However it has a various consumer platform from solar energy project developers, solar energy system integrators and installers, commercial home owners, independent energy producers and utility leaders. Paying attention to the above research goals and the diverse consumer platform of Canadian Solar we have determined that we will be including both additional and primary research methods to be able to extract appropriate details on the prospective industry.

Research Design We have set up our rationale based on detailed information about the target audience that required comprehensive research about opponents, legal guidelines, requirement for the item in concentrate on audience and the details on industry condition. Descriptive research style was the best appropriate strategy at this attempt. Data Collection To obtain an appropriate details we have use all reliable sources such as govt sites, company sites and sites of opponents. For this research the Internal sources which are used forr these studies included advertising and promotion review, accounting and fiscal reviews and few other appropriate sources such as inventory reviews and research and development reviews. Randomized internet surveys within the concentrate on group have helped us to obtain details about client care in both the nations. The quick evolving Social Media Online marketing strategy couldnt be left behind to be able to comprehend the needs of the people and their responses. The constraint of funds and time prevent to conduct the main research and later on if funding is available with ample period of your energy and effort open-ended questionnaires will be used to collect much precise details about the concentrate on audience.

Secondary Data Online readily available services have been the significant resource for additional details selection throughout. The sites that can be useful are mentioned below: The website of Canadian Solar is significant resource to know about companys present and upcoming business activity and enhance the item details.