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SolarCity Corporation's Best Moves in 2015

The year 2015 hasn't been a great one for SolarCity Corp as residential solar installations fell short of expectations and sales costs exploded upwards. But as the company moves into 2016, it's starting to position itself as a stronger organization despite the short-term weakness investors have seen.

One of the best moves the company has made is something that's had little to no impact on the bottom line thus far, but could in the future -- and that's getting into community solar in a big way.

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Source: GTM Research .

Even if SolarCity captures 10%-20% of that market, it could be a significant (and growing) chunk of the 1,250 MW the company plans to install in 2016.

Another business model would help SolarCity

Part of SolarCity's challenge this year is that investors have begun to question the value of its power purchase agreement/lease that counts on homeowners paying bills consistently for 20 years or more. The company is trying to diversify to into new markets and counterparties, targeting commercial customers heavily with new products, and now adding community solar farms to the model. That diversification could be a benefit to the company long term.

Plus, community solar could help the company reduce sales costs per watt and increase growth. Considering those were two challenges it struggled with in 2015, this was a big announcement for SolarCity.

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The article SolarCity Corporation's Best Moves in 2015 originally appeared on Fool.com.

Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of and recommends SolarCity. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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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.

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