SunPower, Ecoware sign 130MW deal

San Jose, Calif.-based SunPower (Nasdaq: SPWR) said it has signed an agreement to provide 130 megawatts of panels to Italian solar integrator Ecoware.

Financial terms were not disclosed.

The shipments are expected to start in the first quarter of 2009 and last four years.

Ecoware designs turn-key power plant solutions. The company manufactures dual-axis ground mounted tracker systems, and has designed and installed a number of solar power plants in Italy.

Ecoware now plans to expand its business into Southern and Eastern Europe.

SunPower officials say they see Italy as a strong growth market.

To speed the adoption of renewable technologies, the government recently adopted a feed-in tariff of €0.445 to €0.49 per kilowatt-hour for the first 20 years of systems sized 1 kilowatt to 1 MW. Meanwhile, countries such as Germany and Spain are looking to reduce incentives for solar power.

The potential for Italy to be a leading solar market prompted Nanjing, China-based photovoltaic manufacturer ET Solar to sign a deal last month with Helios Technology to provide 15 MW of modules (see ET Solar to sell modules to Italy).

Meanwhile the declining value of the euro compared to the U.S. dollar is hurting SunPower. Last week, the company reduced its earnings projections for the rest of 2008 and 2009 because of the unfavorable exchange rate (see Dollar's strength hurts SunPower).