SunPower Invests $20M in Tendril to Utilize ESM Platform - Analyst Blog

SunPower Corporation ( SPWR ) has invested $20 million in Tendril Networks Inc. and will license its energy services management (ESM) platform software. The primary objective of this investment is to develop smart energy applications, which can serve a wider range of both customers and utilities, by utilizing SunPower's immense solar-based data.

Boulder, CO-based Tendril engages in defining the data-driven ESM for the budding energy space. The firm has the expertise to produce enterprise-class software platform, which can provide the exact understanding of each consumer.

SunPower's strong understanding of the solar industry in collaboration with Tendril's ESM platform will help the energy firms to meet clients' demands through customized services. The development of the advanced ESM platform will increase options, insight and management of energy besides upgrading solar solution marketing strategies via direct channels.

The utilization of Tendril's ESM platform will enable SunPower to know the individual requirement of personalized services based on the customers' lifestyle and financial objectives.

SunPower's systematic investments in expanding its product and service portfolio are appreciable. The company is primarily following an inorganic expansion strategy for expanding its operations. In Nov 2014, SunPower acquired an integrated micro-inverter technology firm SolarBridge Technologies, Inc. This transaction helped the company change direct current generated by a single solar photovoltaic panel into alternating current.

Demand for solar energy in the U.S. is rising gradually given the growing awareness of its advantages and government's focus on renewable sources for energy needs.

Most entities related to the solar business, including solar product manufacturers and utility firms, are expanding their operations to tap the growing solar market. In addition to SunPower, its peers SolarCity Corporation ( SCTY ) and Enphase Energy, Inc. ( ENPH ) are investing significantly to strengthen their product and service offering. A U.S.-based utility NRG Energy, Inc. ( NRG ) is currently expanding its retail solar business.

SunPower maintains a stable cash position with cash and cash equivalents of around $0.92 billion as of Sep 28, 2014. A steady financial profile supports the company's expansion activities and technological upgrades.

SunPower currently has a Zacks Rank #3 (Hold).

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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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