) has installed a 7.5-megawatt high efficiency solar power system
on the Lake Pleasant Water Treatment Plant located in the city of
Phoenix. This water treatment plant has the capacity to generate
15 billion gallons of tap water each year.
This installation will be the largest and will likely meet 70.0%
of the plant's electrical power needs. Solar power system
consists of 22,936 solar panels, which are being used to save
approximately 15 million kilowatt-hours ("kWh") each year. As
compared to the conventional kind of electricity, the use of this
system will save approximately $4.2 million over a span 20 years.
At the Lake Pleasant Water Treatment Plant, a 6-megawatt
ground-mounted solar array will be installed with a SunPower T0
Tracker system. This tracker system will absorb sunlight by more
than 25% in comparison to conventional fixed-tilt systems as it
positions the solar panels well to follow the sun's movement
during the day.
Also, over the next 20 years, the installation of the solar
system on an annual basis will offset the production of more than
9,000 tons of carbon dioxide, which is almost equal to removal of
approximately 35,800 cars from roads.
The installation of the system is not expected to face any
financial hurdles, going forward. Through a solar services
agreement with SunPower, the city of Phoenix will finance the
system. Per the agreement,
Wells Fargo & Company
) will own the system, which is designed, built, operated and
maintained by SunPower. The electricity generated from the
project will be bought by the city of Phoenix at rates that are
competitive with the retail electricity. In order to fulfill the
state's renewable energy standard, the renewable energy credits
associated with the system will be transferred to Arizona Public
This is not the first time that SunPower is working for the city
of Phoenix. SunPower has also placed 5.4-megawatts of power at
Sky Harbor and 100-kilowatt systems at the Phoenix Convention
Center and the Burton Barr Central Library.
Currently, solar projects located at Phoenix are generating 13
megawatts of electricity that is sufficient to power
approximately 2,600 homes on an annual basis. The solar system
produces clean energy for the coming years while enabling
reduction of operational expenses significantly.
SunPower seems to be working well on solar energy projects
worldwide. In December last year, SunPower has extended its
long-standing supply agreement with Toshiba through 2018.
Pursuant to the supply agreement, SunPower would provide over 100
megawatts of its highest efficiency residential solar panels
annually exclusively to Toshiba. Toshiba would offer solar
systems with SunPower's highest efficiency solar modules in the
rapidly growing Japanese residential market.
Again in December, SunPower had made announcement for the
construction of two South African ground-mounted solar power
projects near Douglas, South Africa in the Northern Cape Province
in collaboration with AE-AMD Renewable Energy.
Based in San Jose, California, SunPower designs, manufactures and
delivers the highest efficiency, highest reliability solar panels
and systems available today. SunPower's customer base is spread
across North America, Europe, the Middle East, Asia and
SunPower is proactive in entering new markets. In addition to a
sizeable presence in the US, it is already focusing on improving
market share in France, Germany, Italy, Spain and Japan, while
gaining new market share in the emerging markets like England,
Greece, Israel and Malta. The company presently retains a
short-term Zacks Rank #1 (Strong Buy). We have a long-term
Neutral recommendation on the stock.
SUNPOWER CORP-A (SPWR): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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