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).

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