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Sunrun Enters Florida's Solar Market, Offers Rooftop Panels
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Solar energy provider, Sunrun Inc. (RUN - Free Report) , has recently entered the market of Florida by promising to offer solar power at more affordable rates to residents of the state.
For installation of rooftop solar panels at their house, consumers can either own their system outright with Sunrun BrightBuy, or finance their system purchase with Sunrun Bright Advantage, using a loan arranged by Sunrun.
Apart from providing cheap clean energy options, this initiative is also anticipated to boost employment across Orlando and Tampa.
A Brief Note on Florida’s Solar Market
The state of Florida’s physical and geographic conditions is third best in the country for solar power generation, consequently making it ideal for expansion of solar power. Yet the state does not have a renewable energy portfolio standard and does not allow power purchase agreement, which drive utility investment in other states.
Nevertheless, realizing the strong potential for rooftop solar in Florida, residents of the state voted in favor of cleaner energy choices in Nov 2016 and legislators responded by passing Senate Bill 90 (SB 90). The SB 90 in turn offered a tax rebate for those investing in renewable energy sources. No doubt, this legislature has offered ample opportunities for solar energy providers like Sunrun to grow in the ‘Sunshine State’s solar market.
How Will this Help Sunrun?
The U.S. is on path to replace an estimated 70% of grid infrastructure that is nearing the end of its useful life. While Utilities are spending billions of dollars to add capacity to grids – the actual electricity demand remains flat.
Rooftop solar is believed to be one of the best opportunities to create a low cost, reliable modern infrastructure, leading to lower utility expenditures. It is estimated that a typical home solar system would save approximately $750 in future annual infrastructure costs which is in addition to the benefits of clean energy that the system generates.
Following Florida’s legislature’s announcement, the subsidiary of Tesla Inc. (TSLA - Free Report) - SolarCity entered the solar market of Florida in December, by launching residential solar services in the state. This initiative was to make most of the opportunity. Vivint Solar, Inc. followed suit by entering the market in March this year, by expanding availability of its affordable solar energy systems into Orlando. However, we believe the solar market in this state is still in a nascent stage and Sunrun’s move is evidence of its intent to capitalize on the yet to be unearthed opportunity.
Considering the fact, that Sunrun is a well known company in residential solar energy systems across multiple states like Arizona, California, Delaware, Colorado, Connecticut, Hawaii, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Oregon, Pennsylvania and South Carolina, its latest entry in Florida will further boost growth.
Price Movement
In the last six months, Sunrun has outperformed the Zacks categorized Solar industry. The company’s shares increased 19.9%, while the industry gained 10.6%.
The outperformance can be attributed to the company's growth strategy to develop relationships with third parties. It has been resourceful in establishing strategic relationships with market players across a variety of industries, including large retailers, to generate new customers. The company has also undertaken several steps to introduce new products to penetrate new markets and to expand footprint across states in the U.S.
SolarEdge Technologies reported a positive earnings surprise 39.13% in first-quarter 2017. Its 2017 estimates have risen by 14.43% to $1.11 per share in the last 60 days.
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Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
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Sunrun Enters Florida's Solar Market, Offers Rooftop Panels
Solar energy provider, Sunrun Inc. (RUN - Free Report) , has recently entered the market of Florida by promising to offer solar power at more affordable rates to residents of the state.
For installation of rooftop solar panels at their house, consumers can either own their system outright with Sunrun BrightBuy, or finance their system purchase with Sunrun Bright Advantage, using a loan arranged by Sunrun.
Apart from providing cheap clean energy options, this initiative is also anticipated to boost employment across Orlando and Tampa.
A Brief Note on Florida’s Solar Market
The state of Florida’s physical and geographic conditions is third best in the country for solar power generation, consequently making it ideal for expansion of solar power. Yet the state does not have a renewable energy portfolio standard and does not allow power purchase agreement, which drive utility investment in other states.
Nevertheless, realizing the strong potential for rooftop solar in Florida, residents of the state voted in favor of cleaner energy choices in Nov 2016 and legislators responded by passing Senate Bill 90 (SB 90). The SB 90 in turn offered a tax rebate for those investing in renewable energy sources. No doubt, this legislature has offered ample opportunities for solar energy providers like Sunrun to grow in the ‘Sunshine State’s solar market.
How Will this Help Sunrun?
The U.S. is on path to replace an estimated 70% of grid infrastructure that is nearing the end of its useful life. While Utilities are spending billions of dollars to add capacity to grids – the actual electricity demand remains flat.
Rooftop solar is believed to be one of the best opportunities to create a low cost, reliable modern infrastructure, leading to lower utility expenditures. It is estimated that a typical home solar system would save approximately $750 in future annual infrastructure costs which is in addition to the benefits of clean energy that the system generates.
Following Florida’s legislature’s announcement, the subsidiary of Tesla Inc. (TSLA - Free Report) - SolarCity entered the solar market of Florida in December, by launching residential solar services in the state. This initiative was to make most of the opportunity. Vivint Solar, Inc. followed suit by entering the market in March this year, by expanding availability of its affordable solar energy systems into Orlando. However, we believe the solar market in this state is still in a nascent stage and Sunrun’s move is evidence of its intent to capitalize on the yet to be unearthed opportunity.
Considering the fact, that Sunrun is a well known company in residential solar energy systems across multiple states like Arizona, California, Delaware, Colorado, Connecticut, Hawaii, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Oregon, Pennsylvania and South Carolina, its latest entry in Florida will further boost growth.
Price Movement
In the last six months, Sunrun has outperformed the Zacks categorized Solar industry. The company’s shares increased 19.9%, while the industry gained 10.6%.
The outperformance can be attributed to the company's growth strategy to develop relationships with third parties. It has been resourceful in establishing strategic relationships with market players across a variety of industries, including large retailers, to generate new customers. The company has also undertaken several steps to introduce new products to penetrate new markets and to expand footprint across states in the U.S.
Stock to Consider
Sunrun currently carries a Zacks Rank #3 (Hold).
A better-ranked player from the Solar space include SolarEdge Technologies, Inc. (SEDG - Free Report) . It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SolarEdge Technologies reported a positive earnings surprise 39.13% in first-quarter 2017. Its 2017 estimates have risen by 14.43% to $1.11 per share in the last 60 days.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
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