SunEdison (NYSE:SUNE) Shines With its Renewable Energy Engagament
The Solar industry has undergone several significant changes in the fiscal 2014. There have been remarkable ups and a few downs, in view of the interest this market attracts due to efforts to have lesser reliance of electrics.
Consumers opting for solar installation are projected to undergo a hike, with the demand reaching up 35% to 50gigawatts. This energy level is expected to provide power to 8.2 million homes. However, this doesn’t seem to have an entire positive effect on the price of solar stocks. Trina Solar (NYSE:TSL) and Canadian Solar (NASDAQ:CSIQ) have gone down 25% and 7%, respectively. The stock prices for both SunPower (NASDAQ:SPWR) and SolarCity (NASDAQ:SCTY) have remained flat for the fiscal year.
One company that seems to have been undergoing good performance is SunEdison (NYSE:SUNE), which has gone on to become the top renewable energy developers in the current fiscal year. The stock prices for the company have seen ascend of 75%. The company has been up to a lot during the year; the$2.4 million acquisition of First Wind, the 5 gigawatt agreement signed in India, and an agreement to establish 1.7 gigawatts of projects in China.
The company sees to have expanded by many folds as compared to its peers in a rather newer market. With the launch of YieldCo, SunEdison (NYSE:SUNE) seems to have revived the chances of long-term capital value of solar energy.
SunEdison (NYSE:SUNE) is more seen as a finance and construction company, rather than a solar energy manufacturer, as it has contracted other companies for the provision of sola apparatus, such as wafers and polysiliscon. It then goes on to manufacture the solar modules.
The stock figures are quite evident of the fact that this strategy seems to have played in the company’s favour. The combined low in the solar panel as well as finance prices is what has generated maximum yield for SunEdison (NYSE:SUNE). The market has also heavily engaged with companies that own renewable energy technology or YieldCos, which allow dividend payments to investors.
SunEdison (NYSE:SUNE) was the quickest to launch YieldCo with the formation of TerraForm Power (NASDAQ:TERP) to work on the renewable energy ventures.
The solar industry is being projected to undergo a 35% growth, with companies generating impressive yield figures. This is expected to expand over the decade even more on global front, as soon as the energy is able to satisfy the grid parity condition. However, the market still lags behind when compared with the trends in the oil market.
Even though the decline in oil prices has little to do with the solar energy industry, the market seems to correlate all energy sources. This seems to have had an effect on the recent lows.
The installation growth for SunCity is 84% at 326 megawatts till Q3 of this fiscal year. Vivint Solar (NYSE:VSLR) has gone up 165% to 106 megawatts.
2015 seems like a promising year for this market and the highs and lows of the fiscal 2014 seem to have matured both the developers as well as manufacturers.