The deal marks the first time BayWa r.e. enters into a distribution agreement with a Chinese module manufacturer, according to a company statement. The deal has been described by the companies as a ‘win-win’ for both.
BayWa r.e. has signed module distribution deal with Longi Solar, the world’s largest vertically integrated monocrystalline PV producers. Reportedly, it is the first deal of its kind for the German based project developer and distributer.
The global deal will see BayWa distribute Longi modules through its channels in key markets. It sees BayWa become one of a small number of certified Longi distributors.
“Thanks to the broad network of BayWa r.e. we will certainly increase our market share in the global PV market and improve our products even further,” said Gerald Patrick Müller, Vice President Sales Europe at Longi Solar Technology, in a statement.
Speaking to pv magazine Frank Jessel, Director of the Business Entity Solar Trade at BayWa r.e., explained that this does not mean that BayWa r.e. will stock only Longi modules. The terms of the agreement is indefinite at this stage, and BayWa has entered similar agreements previously regarding specific inverter suppliers.
“The agreement allows all of our subsidiaries to purchase Longi’s modules at the same good conditions.” However, Jessel refused to specify what the ‘good’ conditions are or at which price BayWa r.e. will be purchasing Longi modules. Furthermore, there is no specific minimum purchase volume. “However, as is usual with such agreements we have jointly agreed to common goals.”
The supply agreement between Longi and BayWa does also not extend to the German company’s project business. Such a decision would be the prerogative of BayWa r.e. Solar Projects GmbH.
BayWa r.e. is active across Europe, some African countries, like Algeria, Morocco, Kenya, and Botswana, North America, and Mexico, as well as Japan, Southeast Asia, and Australia. The list of markets in which BayWa is active features some of 2019’s biggest and most promising solar end markets.
“We are excited to significantly enlarge our quality portfolio by adding the products of Longi Solar Technology,” comments Frank Jessel. “The partnership is a win-win situation. On the one hand, we profit from Longi’s huge experience and reputation in the field of PV technology. On the other, we can provide our know-how and connections to the global market for renewable energy.”
Source PV Magazine