SunPower Corporation (SPWRA) is now entrusted with 90% of the supply of electricity consumed by San Juan Water District’s water treatment plant, booster pump station and administration buildings.
This supply of electricity from a newly completed, high efficiency solar power system will help San Juan Water District to save approximately $12 million in energy costs over the 25-year life of the system.
The solar power system is designed and built on approximately four acres of District-owned land by SunPower. The company installed the most efficient SunPower solar panels on a SunPower T0 Tracker system. The T0 Tracker is a ground-mounted system that rotates the panels to follow the sun during the day and increases the capability to capture energy by up to 25% over conventional fixed-tilt systems. It also significantly reduces land use requirements.
Savings are dependent upon the cost of power from PG&E Corporation (PCG) throughout the life of the project. Approximately 40% of the construction cost of the project will be offset by a California Solar Initiative rebate from PG&E Corporation, and the balance of 60% will be recovered through energy cost savings in the first nine years of operation.
Per the U.S. Environmental Protection Agency, the system will offset the production of more than 1.5 million pounds of carbon dioxide emissions each year, which is equivalent to removing 3,525 cars from California’s highways over the next 25 years.
This project will allow San Juan Water District to minimize the long-term impacts on ratepayers from rising energy costs. San Juan Water District is a community services district that provides drinking water to more than 265,000 people in portions of Sacramento and Placer counties. In addition to serving retail customers in Granite Bay, east Roseville, and the northeast portion of Sacramento County, the district also wholesales water to Citrus Heights and Fair Oaks Water Districts, Orange Vale Water Company and the city of Folsom and periodically to Sacramento Suburban Water District.
We are bullish about SunPower’s diversified channel strategy with a strong presence in the residential and commercial market, along with its status as a conversion efficiency leader for the mass market. Opportunities for the vertically-integrated solar manufacturer appear solid given the very high growth potential in the alternative energy industry.
SunPower also has a steadfast focus on spreading out its revenue stream across the solar value chain from cells to systems installation. The company presently retains a short-term Zacks #3 Rank (Hold). We have a long-term Outperform recommendation on the stock.
Based in San Jose, California, SunPower designs, manufactures and delivers high efficiency, high reliability solar panels and systems. Residential, business, government and utility customers rely on the company’s guaranteed performance to provide maximum return on investment throughout the life of the solar system.
