Investors
Following the Money in #Solar: Sector Closeup; (OTCQB: $SING) (NYSE:
$VSLR) (NASDAQ: $SUNW) (NASDAQ: $SPWR)
Point
Roberts, WA and Delta, BC - June 25, 2019 (Investorideas.com Newswire) Investorideas.com, a leading
investor news resource covering solar stocks releases a sector snapshot
reporting on the continued growth in solar installations in both residential
and commercial zones as more businesses and consumers realize the benefits of
solar and as it becomes more readily available and affordable for both.
SolarPower.com recently reported “In the
first three months of the year, the U.S. installed 2.7 gigawatts of solar PV,
making it the most solar ever installed in the first quarter of a year. With
the strong first quarter, Wood Mackenzie Power & Renewables forecasts 25%
growth in 2019 compared to 2018, and it expects more than 13 GWDC of
installations this year, as reported in its new U.S. Solar Market Insight
Report.”
“The first quarter data and projections for the rest of the
year are promising for the solar industry,” said Abigail Ross Hopper, President
and CEO of the Solar Energy Industries Association. “However, if we are to make
the kind of progress we need, to make the 2020’s The Solar Decade, we will need
to make substantial policy and market advances.”
A new survey, conducted by CITE
Research on behalf of Vivint Solar Inc.
(NYSE: VSLR), revealed 70% of American adults said they would support a
nationwide mandate requiring solar panels to be installed on all newly built
homes. The survey also revealed significant others and environmental experts
are the most influential when deciding to install residential solar for the
good of the environment, while politicians are the least influential by far.
"California was the first
state to pass a solar panel mandate on new homes and it goes into effect in
2020. We've seen that state often lead the way in establishing environmental
practices nationwide," said David Bywater, CEO of Vivint Solar, which has
installed solar energy systems on more than 160,000 US homes. "We believe
more states will make strides to adopt residential solar requirements, and it's
great to see the vast majority of American adults support this, even at a
nationwide mandate level. With nearly a million new single-family homes built
annually, if all of them took advantage of solar energy, it would be equivalent
to driving 12 billion fewer miles a year or consuming 12 million fewer barrels
of oil.”
Among those who support a
nationwide solar mandate, 32% said they strongly support it and 38% said they
somewhat support it, while approximately 16% said they somewhat oppose it and
14% said they strongly oppose it. While there was no significant difference in
attitudes between men and women, opinions varied based on region, age group,
and homeowner and relationship status varied.
As residential solar is currently
optional for existing homeowners, survey takers were also asked who would most
influence their decision to install solar panels on their home for the good of
the environment. Spouses/significant others proved the most powerful force,
with 58% of survey takers claiming they would be influenced by them (36% a
great deal of influence, and 22% some influence). Environmental experts were
the next most influential, with 57% saying they would be influenced by their
opinion (28% a great deal of influence, 29% some influence).
Politicians are the least
influential, with just 19% of people saying a political figure would influence
their opinion to go solar for the environmental benefits (6% a great deal of
influence, 13% some influence). And while politicians don't rank highly
overall, data shows the older you get, the less likely you are to be influenced
by them. Among survey takers, the percentage who say politicians have no
influence: 46% for those aged 25-34; 49% age 35-44; 59% age 45-54; 64% age
55-64, and 73% of those aged 65+. Comparatively, 29% of those 25-44 claimed
politicians would have some or a great deal of influence, while only 7% of
those 65+ stated the same.
Direct
Solar, a wholly owned subsidiary of Singlepoint Inc. (OTC: SING) announced that the company is developing a commercial solar lending
solution. The solution will serve customers that own and/or manage commercial
properties. This is a massive market opportunity that the commercial space is
looking for.
Direct Solar will be one of the first companies to offer
this type of lending solution and is expected to launch in the next four to six
weeks.
“Currently there are a lot of
residential lending solutions as well as large scale lending for solar farms
and high megawatt projects. We have yet to find a solution that will finance
projects in the small to medium commercial space. Our financing solution will
provide these customers with quick funding turn around and require no personal
guarantees. We believe there is enough projects for us to turn $100 Million
dollars in lending over the next 9-12 months,” states Pablo Diaz, Founder &
CEO of Direct Solar.
Offering this new financing
solution will provide Direct Solar with addition revenue and cash flow, as the
company will be receiving commissions on each project that is funded as well as
commission on the installation.
“This is a massive opportunity to
fill a huge gap in the market. There has not been a solution we’ve found like
ours simply because the current model means you are either a lender or
installer. Direct Solar being one of the only solar brokers in the market means
we can work with the customer to find the right installer and the right lender.
Matching these two together is a win-win for everyone involved,” states Brian
Odle, National Finance Director of Direct Solar.
Coming off of a major month (May
15, 2019 – June 15, 2019), Direct Solar closed $1,709,460 in solar installs.
This revenue should generate approximately $803,769 in gross and $361,541 in
net. Additionally, the company added three new major service areas with a
fourth on the way. This has all been residential driven. The addition of the
commercial solar opportunity should dramatically increase the quick growth the
company has already been experiencing.
These numbers put Direct Solar on
the path to profitability from a cashflow standpoint very quickly. Management
from SinglePoint and Direct Solar are very excited to see the continued growth
of the solar business through multiple avenues, including commercial.
“This acquisition puts SinglePoint
on a huge trajectory path. The solar market is on an extreme growth trajectory
and Direct Solar has planted its foot right in the middle of it. Providing
installers and financers with qualified customers, while providing these
customers a streamlined process for purchasing solar,” states Greg Lambrecht,
CEO of SinglePoint.
Sunworks,
Inc. (NASDAQ: SUNW), a provider of solar power solutions for agriculture,
commercial and industrial (ACI), public works and residential markets, recently announced a new 751 kW solar power construction
project for Plumas Mutual Water District, a water company located in Yuba City,
California that distributes water for farming operations.
Sunworks Chief Executive Officer, Chuck Cargile, said,
“Water districts in California are faced with many challenges, including water
shortages, drought and resiliency challenges. Solar can help address these
issues in a cost effective way while also helping to ensure crop production and
yield are maximized.”
Construction of the new $1.3 million, 751kW ground-mount
system project is expected to commence later this year with revenues recognized
in the fourth quarter and into the first half of 2019.
Joe Danna, Director of Plumas Mutual said, “From our first
meeting, it was clear that the Sunworks team had a strong understanding of our
challenges and goals. They designed a system that was tailored to our
requirements and helped us understand how we can maximize our cost, so we can
serve our customers in a more sustainable and resilient way.”
SunPower
Corporation (NASDAQ: SPWR) recently announced that with Hannon Armstrong Sustainable Infrastructure Capital, Inc. and SunStrong Capital Holdings, LLC, it has
secured financing commitments for its residential solar lease program that will
help meet SunPower's expected customer demand into 2020. SunPower has provided
solar lease financing options to customers since 2010. The attractive financing
provisions with this new fund will supplement the solar loan and cash sale
alternatives currently offered by the company.
The new fund is structured as a levered tax equity
partnership with a multi-party forward purchase commitment, allowing generation
of upfront cash margins for residential solar leases. The financing commitments
for this new fund are being provided largely from a repeat group of loan and
equity providers that continue to have strong long-term relationships with
SunPower and Hannon Armstrong.
Bank of
America Merrill Lynch acted as the sole structuring and placement agent for the
cash equity and multi-draw term loan, as well as the sole tax equity investor.
Additional equity capital was provided by SunPower, Hannon Armstrong and their
joint venture SunStrong, which holds equity interests in more than 55,000
residential solar energy systems.
"SunPower's strong suite of acquisition options, and
our technologically superior solar energy solutions, allows us to continue
meeting growing customer demand," said Tom Werner, SunPower CEO and
Chairman of the Board. "Thanks to our financing partners, who share our
clean energy future goals, we're able to ensure funding to meet the needs of
those customers who desire a leasing option."
"This latest fund continues our multi-year
programmatic investment with SunPower, helping to decarbonize the residential
sector using solar, one of the climate solutions essential to mitigating
climate change," said Jeffrey Eckel, Hannon Armstrong President and CEO.
"We are especially pleased with the expansion of SunStrong's role in this
innovative fund as it demonstrates the increased financial capabilities of this
new joint venture with SunPower."
SunPower offers its lease program through its network of
residential solar dealers across the US, new home builders where the company
holds a market-leading position, and direct sales teams. Last year, SunPower's
US residential business saw annual deployment growth of more than 15 percent,
bringing the total number of American homes with SunPower® solar to over
275,000 consumers.
Additionally, the company announced that SunStrong has
acquired a residential lease portfolio from Capital Dynamics. This transaction
adds to SunStrong's existing high-quality asset portfolio with the addition of
more than 41 MW and 5,100 residential systems.
This push for solar shows a similar parallel to the
cannabis industry wherein, regardless of federal policies, which in the case of
solar seem to ignore climate change, the American public as well as American
businesses are demanding cheaper and more accessible energy solutions with a
heavy focus on solar. These early growth numbers paint a very obvious picture
as to where American’s see the future of US energy heading, but we will still
have to wait and see if 2019 is in fact going to continue with this first
quarter trend.
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