Guinness Sustainable Energy Fund on Xinyi Solar Holdings
Thesis
The fund owns Xinyi Solar as a key supplier into the solar manufacturing value chain. The company is described as the world's largest supplier of the glass used in solar modules, giving it leveraged exposure to continued global solar installations. The managers expect solar to remain one of the dominant sources of new power capacity as costs stay competitive and electricity demand grows.
“Xinyi Solar is the world’s largest supplier of the glass used in solar cell modules”
Key risks
- Solar manufacturing oversupply can pressure pricing
- Trade and tariff changes can alter solar supply-chain economics