ReneSola Ltd, a solar module manufacturer, has announced that it has signed a $100 million strategic investment agreement with the Zhongnan Industry, a subsidiary of Zhongnan Holding Group. Both of these companies are headquartered in China.

According to the agreement, Zhongnan Industry will invest $100 million to strengthen ReneSola’s solar module manufacturing supply chain.

Speaking to Mercom, the spokesperson of ReneSola said, “This investment will help ReneSola to strengthen the entire supply chain of PV module manufacturing business in China as well as globally.”

Sky Wang, the CEO of ReneSola, commented on the development, saying, “This strategic partnership with Zhongnan Holding Group will add value to our supply chain and enhance our production capacities while allowing us to focus more on the technological advancement in the solutions we provide to our valuable customers.”

Recently, another Chinese company, LONGi Solar, a manufacturer of high-efficiency mono-crystalline solar cells and modules, announced a framework agreement to acquire solar cell and module manufacturer Ningbo Jiangbei Yize New Technology for 1.78 billion yuan (~₹18.11 billion or $252.8 million). The Shanghai Stock Exchange filing stated that LONGi would acquire the Chinese cell and module maker through a 100% acquisition of its equity through cash.

Mercom Capital Group’s recently released  Q1 2020 Solar Funding and M&A Report revealed that the total corporate funding in the solar sector, which includes venture capital funding, public market, and debt financing has plummeted by 31% at $1.9 billion (~₹143.4 billion) in Q1 2020 as compared $2.8 billion (~₹211.35 billion) raised in Q1 of 2019. The total corporate funding stood at $2.7 billion (~₹203.79 billion) in Q4 2019. The report attributed this downturn in funding activity to lower venture capital, and public market financing as the COVID-19 pandemic has affected people and industries across the globe.