SunPower Corporation (SPWR - Free Report) , a subsidiary of TOTAL S.A. (TOT - Free Report) , has been selected by Santa Rosa Junior College, a CA-based community college for installing a solar and storage project. Per the deal, SunPower will be responsible for design, engineering, and procurement of materials for both solar and storage project. Further, it will be responsible for the operation and maintenance of the installed system.
The project includes the installation of a 1.3 megawatt (MW) SunPower® Helix™ Carport system in the college’s 40-acre Petaluma campus. Also, a total of 2.6 MW SunPower® Helix™ Carport system and SunPower's Garage Top Carport system will be deployed in Santa Rosa’ 100-acre campus.
Additionally, a 1.3 MW energy storage system will be supplied and operated by Stem, Inc and its software system.
The project, expected to be complete in 2018 and will be a addition to 77-kilowatt (KW) SunPower system that has been operating on top of the college’s library back in 2007. This makes the company a preferred choice for future renewable contract from the college.
SunPower Continues to Win Contracts
This installation marks SunPower’s third contract win to supply high efficient solar panels in 2017. In July, the company completed its contract with Oklahoma Gas & Electric Company (OG&E), an electric utility subsidiary of OGE Energy Corp. (OGE - Free Report) under the terms of which it is currently in talks to build a 10 MW solar photovoltaic (PV) power plant in Covington, OK. (Read more: SunPower to Construct 10MW Solar Power Plant in Covington)
In May, it had also initiated the construction of a 28 MW solar photovoltaic system at Vandenberg Air Force Base near Lompoc, CA. (Read more: SunPower to Build 28 MW Air Force Solar Project).
With growing concerns regarding deteriorating climatic changes, many companies worldwide are currently shifting attention to tap the benefits of solar and wind generation. As such solar power is anticipated to become one of the major sources of energy.
The rise in greenhouse gases globally has forced companies to look for eco-friendly energy opportunities. Environmental Impact Assessment (EIA) stated that carbon emission in the United States witnessed a dip of almost 1.7% in 2016 year on year. The generation capacity from the renewable sources is expected to rise significantly over the coming years.
Keeping the current state of affairs in mind, SunPower’s incoming contracts, to build and install cost saving systems and projects will enable it to develop and avail the benefits of more solar projects, power plants and engineering, procurement and construction (EPC) systems. Through these cost savings initiatives and strategies, the company looks well poised to win over additional customers, consequently consolidating position in the market.
In the last six months, SunPower has underperformed the industry. The company’s shares gained 7.4%, against the industry’s gain of 22%.
The underperformance can be attributed to the stiff competition that it is currently facing from solar manufacturers globally.
Zacks Rank & Stock to Consider
SunPower carries a Zacks Rank #2 (Buy).
Investors can consider another top-ranked stock from the same industry like SolarEdge Technologies, Inc. (SEDG - Free Report) that sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SolarEdge posted second-quarter 2017 earnings from continuing operations of 55 cents per share, beating the Zacks Consensus Estimate of 36 cents by 52.78%. The company’s 2017 estimates increased by 42 cents to $1.79 per share in the last 90 days.
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