Developer SPI Solar has agreed a deal to buy a major Chinese rooftop mounting manufacturer as it looks to grab a bigger share of the country’s distributed generation (DG) market.
The company will pay RMB330 million (US$54 million) in an all-share deal for Shanghai All-Zip Roofing System Group.
All-Zip Roofing is a manufacturer, holds several patents and has contributed to national PV roofing standards in China.
“We are pleased to announce this framework agreement with All-Zip Roofing,” said Xiaofeng Peng, chairman, SPI.
“We aim to leverage our high-quality, low-cost development services and All-Zip Roofing’s leading position in the roofing business to become the leading DG business in China. All-Zip Roofing’s dominance in Eastern China, one of the fastest growing markets for DG, will increase our access to an especially promising market,” he added.
China set a quota of 14GW of solar deployment in 2014 with the aim for 8GW to be provided through DG projects. The slow first half of the year – although expected – was even less productive than anticipated and created anxiety among officials. They later announced a reduction in red tape in an attempt to catalyse the DG market.
SPI Solar will complete the acquisition via its subsidiary, Xinwei Solar Power Engineering.