The solar power service provider
) has outlined expansion plans in California to spread reliable
and efficient solar power to the masses. The company has plans to
open 10 new operation centers by the end of this year. This move
will virtually double the company's footprint in the state.
This expansion will bring solar services to new regions, diminish
installation wait times and contribute to state and local
economies by creating additional jobs. This major provider of
clean energy will have a location within 30 miles of more than
90% of California's population. The company has a workforce of
more than 2,100 in California and is seeking to create at least
260 additional jobs in the Golden State.
SolarCity indicated that this expansion will not only boost local
economies but also help it to cut costs and prove beneficial for
the environment. This will be done by lessening drive times and
increasing installation efficiency.
Despite the slow winding down of the state incentive program for
renewable energy in California, SolarCity's operational expansion
will help customers to access solar power at costs comparable or
even cheaper than the local utilities.
California's renewable energy policy, the Renewables Portfolio
Standard (RPS), implicates that all utilities are required to
source 33% of their retail electricity sales from renewables by
2020. At the same time, the state is also winding down its
incentive program that signals how far solar power has moved
toward the mainstream. Currently, the state generates about 20%
of its electricity from renewable energy, most of which comes
from hydropower. However, the California Public Utilities
Commission expects major power generation to come from solar
power in the future.
Recently, SolarCity reported third quarter results. The company
narrowed its adjusted third-quarter loss to 43 cents per share
from a loss of $2.60 per share in the year-ago quarter. The
adjusted third-quarter loss fared better than the company's
guidance of a loss of 50 cents to 60 cents. The upside was backed
by robust solar panel installations, indicating vigorous demand
and was supported by the company's able execution strategy.
During the third quarter, the company booked new customers of
12,386, representing a major jump of 92.4% from the year-ago
number of 6,437.
Tesla Motors Inc
) founder Elon Musk, the SolarCity stock has rallied almost
279.2% since its first appearance in the stock market. The
company has a market cap of $3.72 billion. Elon Musk owns about
73% of SolarCity's 78 million shares outstanding, while a
relatively small proportion is entitled for the public.
SolarCity presently retains a Zacks Rank #3 (Hold). Other better
ranked stocks include
JinkoSolar Holding Co., Ltd.
First Solar Inc.
), both with a Zacks Rank #2 (Buy).
FIRST SOLAR INC (FSLR): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
SOLARCITY CORP (SCTY): Free Stock Analysis
TESLA MOTORS (TSLA): Free Stock Analysis
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