Markets

Another SunPower Project at Nellis Base - Analyst Blog

SunPower Corp. ( SPWR ) has entered into an agreement with NV Energy, a unit of Berkshire Hathaway Inc. ( BRK.B ), to construct a 19 megawatt (MW) solar photovoltaic (PV) power project at Nellis Air Force Base in southern Nevada. This new project will bring more clean energy to Nevada's military base.

Per the contract, SunPower will construct a SunPower Oasis Power Plant system at the military facility. This cost-effective solar system is designed to maximize the utilization of land. The project would lower carbon dioxide emission by about 27,000 tons per annum. The company will start the construction of the plant in 2015 subject to approval from the Nevada's Public Utilities Commission.

This agreement marks the second one of its kind between these two companies. Earlier, SunPower and NV Energy had constructed a 14-MW solar power project at the base in 2007.

Increased focus in the U.S. on green energy sees more and more power being produced from solar cells. The high conversion rates of solar panels, developed by solar companies like SunPower and First Solar, Inc. ( FSLR ), play a vital role in the U.S. solar industry.

In the first quarter of 2014, SunPower's bottom line comfortably surpassed the Zacks Consensus Estimate by 21.87%. For 2014, the company projects earnings per share in the range of $1.10 to $1.40.

The U.S. Energy Information Administration ("EIA") projects that solar energy will be the fastest growing source of renewable generation, increasing by 7.5% per year from 2012 through 2040.The increase in solar energy usage is expected to boost the top line of SunPower. In addition, the newly revised import duties on solar panels and products from China will bode well for the U.S. solar companies.

SunPower, a subsidiary of TOTAL S.A. ( TOT ), presently has a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report

SUNPOWER CORP-A (SPWR): Free Stock Analysis Report

TOTAL FINA SA (TOT): Free Stock Analysis Report

FIRST SOLAR INC (FSLR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SPWR TOT FSLR

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More