), a leading provider of clean energy, has recently announced
that it will provide solar electricity to the town of East
Bridgewater for 25 years in an effort to lower energy costs.
Based in San Mateo, CA, SolarCity has provided the town with
more than 10,000 solar panels which are expected to produce more
than 3 million kilowatt hours of electricity annually. The solar
power project has the capacity to generate 2.45 megawatts (MW)
and is among the largest solar installations in
The clean, renewable electricity generated from the solar
plant will power approximately 350 homes and help them to reduce
their electricity costs and use clean, renewable power. In
return, the town will pay SolarCity a discounted amount as
compared to its local utility rates.
Electricity generated by the solar field will be sent to
National Grid and result in net metering credits. Those credits
will help to reduce the electricity bills of the town. East
Bridgewater is expected to save $2 million as energy costs over
Net metering is a special metering and billing agreement
between utility companies and their customers to facilitate the
connection of small, renewable energy-generating systems to the
power grid. It is generally a consumer-based renewable energy
In recent times, the utilization of solar energy is rising,
primarily due to its clean nature and a growing awareness among
the masses about its benefits. Also, government incentives and
financing options that lower the cost of solar panel installation
have led to an increase in solar business.
In fact, solar power is currently the only viable choice for
residential consumers seeking an environment-friendly power
alternative. Solar power limits the expenses and losses
associated with transmission and distribution from large-scale
electric plants to end users, unlike other renewable resources
such as hydroelectricity and wind power.
Last month, SolarCity announced a definitive agreement to
acquire Paramount Solar to increase its already large customer
base and better compete with other energy producers like
NRG Energy, Inc.
SolarCity is a leading service solar provider with more than
3,300 employees, 68,000 customers and more than 400 MWs deployed.
The company plays to its strength by providing renewable power at
a lower rate than the grid price to residential and commercial
markets in the U.S.
During the recently reported second quarter, the company's
residential MWs deployed increased 144%; cumulative energy
contracts signed and outstanding increased 105% and cumulative
customers increased 97% from the year-ago quarter.
SolarCity carries a Zacks Rank #3 (Hold).
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