SunPower Corporation (SPWR - Free Report) recently announced that it has reached an agreement with Cabot Corp. (CBT - Free Report) to install a 1.12-megawatt (MW) solar project coupled with 940 kilowatt hours (Kwh) of integrated energy storage system at Cabot's Business and Technology Center in Billerica, MA. The construction of the project is scheduled for summer 2019.
The project will also be supported by the new Solar Massachusetts Renewable Target (SMART) Program, established by Massachusetts Department of Energy Resources (DOER) to encourage development of solar energy in the state.
SunPower’s Solar Potential
Currently, the company aims to leverage its experience in commercial solar-plus-storage and adapt to the residential market, which is expanding rapidly. To this end, the company plans to grow the footprint of its Equinox and Helix complete solutions in its residential and commercial businesses. The company currently has more than 9 megawatts of storage operating or under contract at 28 customer sites and plans to further fortify the scope of its residential solar-plus-storage activities in 2019.
SunPower is proactive in entering new markets like those of England, Greece, France, Israel and Malta. Internationally, the company is gaining traction from the markets such as Mexico and Chile. To this end, in August 2018, SunPower announced two international projects. Per the terms of the deal, the company will supply its high-efficiency solar panels for the Sonnedix 46.6 MW Tono project in Iwate prefecture, Japan. Also, SunPower will supply 4 MW of high-efficiency SunPower E-Series solar panels for a ground-mounted solar power system in Amman, Jordan.
Growing Solar Demand
Per the latest release from the U.S. Energy Information Administration (EIA), solar generation in the United States will rise 26.4% from 212,000-megawatt hour per day (MWh/d) in 2017 to 268,000 MWh/d in 2018 and increase 13.1% to 303,000 MWh/d in 2019. The above projection from EIA indicates a massive addition of solar generation in the electricity production mix.
Such forecasts conclude that there will be higher demand for solar panels and modules including SunPower’s products, thus offering significant growth prospects for global solar players.
To this end, other solar companies are also solidifying foothold in the global solar space like Canadian Solar (CSIQ - Free Report) , which currently has multiple late-stage utility-scale solar power projects under construction. Another company in the same arena, JinkoSolar Holding Co. (JKS - Free Report) , also boasts multiple global solar projects in its pipeline.
Shares of SunPower Corp. have outperformed its industry in the last three months. The stock has declined 5.4% versus the 7.8% decline of its industry.
SunPower Corporation has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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