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ET Solar’s Statement Regarding the European Commission’s Letter on ET Solar’s Compliance with MIP Undertaking Agreement

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ET Solar has long been a leading downstream solution provider that sells solar parks to third party investors both in Europe and elsewhere in the world. In these transactions, ET Solar sources solar panels from various suppliers including the ET Solar entity shortlisted under the Minimum Import Price (MIP) agreement between China and the EU on imports of Chinese modules into Europe (the Agreement).

We have recently received a proposal from the European Commission (EC) on a potential withdrawal of the undertaking acceptance for ET Solar under the Agreement. The concerns that the EC has regarding the matter mainly centers on (1) the discrepancies between the module quantities from ET Solar reports and their in-house analysis during certain period; and (2) the practical challenges to estimate the sales price of these modules which are bundled in the turnkey sales price of the entire solar park systems.

We have been very strict and consistent in following the rules under the Agreement and are very confident that we will be able to address the EC’s concerns through clarification and reconciliation efforts in the next weeks.  We believe that our business activities will not be negatively affected by this matter and we will continue to apply very high standards to comply with the agreements that we enter into with regulatory bodies and business partners.

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