In order to generate renewable energy in the state of Colorado, Wal-Mart Stores Inc. (WMT) has announced 6 more solar projects in partnership with SolarCity, which installs, owns and maintains solar power systems for Walmart. This marks the installation of 100th solar power panel in US by the company.
Once the solar projects are completed, these six solar panels of Walmart are expected to generate nearly three million kilowatt hours of renewable energy per year, and avoid spreading more than 5 million pounds of carbon dioxide into the air. Colorado expects to produce 30% of its electricity from renewable sources by 2020.
Walmart also partnered SolarCity in September 2011 to install solar-power panels in more than 60 stores in California, creating solar power for 75% of its stores. SolarCity has installed solar power panels at Walmart stores in California, Arizona and Colorado.
We believe that Walmart has got a good opportunity to expand and accelerate its solar power initiative program. Besides creating jobs and protecting the environment, these solar projects have also reduced costs for local businesses by lowering power bills.
Walmart is using new renewable technologies to achieve its goal of supplying 100% renewable energy. We thus remain confident that Walmart will continue to grow its solar energy program in the US and around the world.
We currently have a Neutral recommendation on Walmart, which faces stiff competition from Target Corp. (TGT) and Costco Wholesale Corporation (COST). The stock has a near- term recommendation with a Zacks #3 Rank (a short-term ‘Hold’ rating).
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