Why Investing in SunPower for the Long Run Is a Good Idea

SunPower (SPWR, Financial) expects its recent investments to accelerate growth should deliver profits in the coming years. It has built exclusive commercial agreement with Sunverge in order to enhance its integrated residential solar and battery storage system. Sunverge owns world-class technology that uniquely leverages the combination of solar power and energy storage in a very prosperous manner that delivers value for both customers and electric utilities.

Also, the continuous ramp of Fab 4 with first silicon should drive its operational results in 2015. It anticipates substantial project completion in the first-half of fiscal 2015. The company connected more than 100 megawatts of its 579 megawatts solar star project in the fourth quarter 2014. The below table reflects its megawatts guidance for the first-quarter by region as well as by sector.

Megawatt Guidance for the first-quarter 2015 by region
Americas 115 to 125 MW
EMEA 35 to 45 MW
APAC 90 to 100 MW
MW Recognized 240 to 270 MW
Megawatt Guidance for the first-quarter by sector
Residential 80 to 90 MW
Commercial 35 to 45 MW
Power Plant 125 to 135 MW
MW Recognized 240 to 270 MW

Smart moves to address demand growth

SunPower sees solar power and energy storage as critical elements for the smart energy in the long run. With this relationship the company would be in a better position to deploy such solutions and be benefited. Also, it should get benefit of an early bird into the technology.

In addition, the company has acquired SolarBridge of late. SolarBridge is predominantly engaged providing unique and high reliable inverter technology. This transaction should assist the company to effectively integrate the development of micro inverter and other associated module level electronics functionality directly with our high efficiency panels.

Additionally, it should enable SunPower to facilitate standardized system in a box product that should result in minimized installed costs. This acquisition will also expand its market channel and improve its system performance in the future.

Moreover, the company has made a strategic investment in Tendril, in Energy Service. This is a management company. This strategic investment should facilitate a cloud based infrastructure and analytics platform for SunPower going forward. SunPower through this investment will be in a better position to deliver personalized energy services to its solar customers across the world.

Conclusion

Apart from these, the company has invested in the software infrastructure. The company expect these investments to enhance its effectiveness in its sales force, provide rich customer experience and better monitoring functionality. The company expects these investments in solar solutions, technology and data coupled with its Customer First approach to deliver significant opportunity to improve its profitability and value for shareholders in the future.