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Massachusetts Okays 3.2GW Solar Deployment: Stocks to Gain

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Per a recent report released by the Solar Energy Industries Association (SEIA), the Massachusetts Department of Public Utilities (DPU) is set to deploy 3,200 megawatts (MW) of solar capacity. In particular, the DPU has ordered the expansion of its Solar Massachusetts Renewable Target (SMART) program from 1,600 to 3,200 MW of solar capacity.

This expansion finally comes after a long wait, specifically an 18-month purgatory for new commercial and utility-scale solar projects in the State of Massachusetts. This should encourage solar investors to keep an eye on stocks like Sunrun (RUN - Free Report) , SunPower (SPWR - Free Report) and Sunnova Energy (NOVA - Free Report) .

Solar Prospects in Massachusetts

With the entire United States rapidly adopting solar power, Massachusetts remains no exception. Per SEIA’s latest report, the state stands at the 8th position in national ranking, with 3,486.3 MW of solar installed. Currently, solar accounts for 19.4% of the state’s electricity generation.

These data indicate the already well-established market that solar energy enjoys in Massachusetts. SEIA projects to witness the solar installation of 1,657 MW in Massachusetts over the next five years.

The SMART program, established in 2018, has driven significant solar deployment in the state of Massachusetts. The latest expansion will further boost deployment in this state, thereby encouraging solar players.

Stocks to Benefit

We have mentioned some solar companies operating in Massachusetts that stand to benefit from the expansion of the SMART program.

Sunrun: The company develops, owns, manages and sells residential solar energy systems. Its solar lease and purchase plans — with or without a home battery — are available in most of Massachusetts. Sunrun offers solar financing in the form of solar power purchase agreements (PPA).

Sunrun delivered an earnings surprise of 120% in the last-reported quarter. The Zacks Consensus Estimate for 2022 narrowed down to a loss of 29 cents from a loss of 39 cents over the past 90 days. RUN currently carries a Zacks Rank #3 (Hold).

SunPower: The company designs, develops, manufactures, markets and sells high-performance solar electric power technology products, systems and services worldwide. It has a team of experts and local solar installers in Massachusetts. Through a long-term PPA with Green Street, a dealer of SunPower, the Attleboro School District is expected to save nearly $5.5 million in energy costs over the next 25 years.

SunPower came up with an earnings surprise of 113.33% in the last four quarters, on average. The Zacks Consensus Estimate for 2022 earnings has improved 4.4% over the past 60 days. SPWR currently carries a Zacks Rank #3.

Sunnova: The company is a residential solar and energy storage service provider. The company offers home solar panels along with battery storage across the state of Massachusetts. In July 2021, Sunnova Energy International partnered with National Grid and SolarEdge Technologies to utilize its fleet of solar and storage assets in New England, MA, to help improve power quality in National Grid’s service area.

The Zacks Consensus Estimate for Sunnova’s 2022 loss has narrowed over the past 90 days. NOVA currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In-Depth Zacks Research for the Tickers Above

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SunPower Corporation (SPWR) - free report >>

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Sunnova Energy International Inc. (NOVA) - free report >>