Solar Energy: The Wave of the Future?

Solar energy has been touted as a viable energy source for the future. The need and demand for clean renewable energy has been increasing in recent years. But a New York Times story reports how increasing demand does not mean rising stock prices for solar energy companies.

This is partly the result of industrial policies of foreign nations like China that subsidize solar energy. In short, these subsidies have pushed the price of solar energy panels down worldwide. So the tumble in these prices can squeeze profit margins and push down share prices of solar companies like Solar City (NASDAQ: SCTY), SunPower (NASDAQ: SPWR) and SunEdison (NYSE: SUNE)

Written by Kyle Colona. To read the full article, click here.

Wells Fargo to Invest in Solar Power

Wall Street banks’ attraction towards solar energy seems to continue. On Wednesday, Wells Fargo & Company (WFC – Analyst Report) announced a further investment of more than $100 million of tax equity financing over the next 18 months to SunEdison, Inc. (SUNE – Analyst Report) – a leading solar energy provider.

Wells Fargo plans to invest in distributed generation solar power projects developed by SunEdison. Since 2007, the banking major has financed almost 200 utility-scale solar projects throughout 13 U.S. states and Puerto Rico, for an amount worth $950 million. This has allowed SunEdison to provide clean and cost-effective energy to its customers.

SunEdison designs its projects according to the terms of a power purchase agreement (PPA). Its customers buy the energy produced for a fixed rate as specified in the PPA. Hence, third-party investors are beneficial to SunEdison as they facilitate the company to install solar power equipment without requiring customers to pay upfront costs. Since 2008, SunEdison has garnered approximately $5 billion in project financing for solar power plants.

Written by Zacks Equity Research. To read the full article, click here