Verizon Communications ( VZ ) has announced its plans to spend nearly $40 million to build 10.2 megawatts (MW) of new solar energy systems covering eight cell sites in five U.S. states. The company has tied up with SunPower Corp. ( SPWR ) for the installation of these solar systems.
We believe this action will not only allow Verizon to conserve energy and resources but also increase cost efficiency by minimizing operational expenses.
Following in the footsteps of Apple Inc. ( AAPL ), eBay ( EBAY ) and Google, Verizon's latest expansion plans include the installation of alternative energy sources at its cell sites to cut carbon emissions footprint considerably by 2020. The plan remains part of the company's "on-site green energy program" launched last year.
According to reports, Verizon has already invested $100 million in this project and looks forward to attain a 25MW system upon its completion. This will enable the company to power more than 8,500 homes per year and eliminate 22,000 metric tons of carbon.
With this latest strategy in place, Verizon is expected to be among the top U.S. companies in terms of the number of solar system installations and solar-energy generating capacity. In 2013, Verizon surpassed its goal of deploying 10MW target using both solar-power systems and fuel cells.
Further, going by market reports, the latest solar energy expansion plans will enable the company to emerge as the numero uno in the telecom industry in terms of adopting solar power.
Verizon currently has a Zacks Rank #3 (Hold).