Interest in renewable energy sources has soared immensely and continues to rise with each passing day. Two key forces are behind this surge: Increased awareness and urgency to address climate change, and falling costs of generation using renewables. Among renewable sources, solar energy looks most promising, due to its more predictable generation pattern. Solar's share in electricity generation is expected to rise from roughly 3% currently to more than 20% by 2050. SunPower (NASDAQ: SPWR) is one stock poised to benefit from these trends. Let's see why.
In its long history of operations, SunPower has tried its hands at almost every aspect of solar business. It now feels that the best way to increase its profitability is to focus on just the technology and marketing side of the business. In August, SunPower completed the separation of Maxeon (NASDAQ: MAXN), which manufactures solar panels. SunPower will continue sourcing the panels from Maxeon. SunPower now focuses on technology innovation, marketing, and the emerging solar products and services markets. This focused approach will allow SunPower to leverage its strength in these segments.
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