) has reached an OEM supply agreement with a leading global
provider of energy solutions, REC Group. The news elicited a
positive market reaction with the stock price gaining 4.4%
As part of the deal, SolarCity, the largest solar power provider in
the U.S., will purchase a minimum of 100 megawatt (MW), which can
rise to a maximum of 240 MW, of REC's Peak Energy solar panels over
a 12-month period beginning fourth quarter 2014.
SolarCity has plans to install the panels, which are compatible
with its Zep Solar mounting system, across its 15-state service
territory. REC's solar panels are supported by its linear 25-year
power output guarantee. Notable characteristics of these panels
include enhanced power production capability per square foot, solid
and durable design, simple installation, optimized performance in
all sunlight conditions, with a typical energy payback time of less
than one year.
REC Group is considered as one of the leading producers of wafers,
cells and solar panels for solar applications. This SolarCity-REC
tie-up is a step forward towards boosting North America's rooftop
SolarCity is well supported in its endeavors by a booming U.S.
solar market. The company sees installations climbing to as much as
900 MW to 1 GW by 2015. It also expects a million rooftop solar
customers by 2018.
The company is also hitting upon new and improvised ways to reach
out to potential customers. It has recently teamed up with
) to form one of the first online offers of its kind for solar
systems. SolarCity's eye-catching deal with Groupon is a broad push
for the industry into online customer acquisition. The company has
already been building up its customer database through
The Home Depot, Inc.
) stores since 2010 and select
Best Buy Company, Inc.
) stores from March this year.
SolarCity presently carries a Zacks Rank #4 (Sell).
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