SunPower's Future May Ride on Next-Generation Manufacturing Plant
Over the last year, SunPower Corporation (NASDAQ: SPWR) has essentially split its business into two very distinct segments. There's the power plant business that is producing P-Series solar modules in China and Mexico and aims to sell solar modules, racking, design, and other services to developers around the world at prices competitive with commodity producers. SunPower is betting that a little engineering in power plants will make them a little more efficient, creating a sustainable business long-term.
On the distributed solar side (residential and commercial), the company is focusing on its high-efficiency X-Series solar modules and solutions known as Equinox and Helix, which are premium offerings. The company has an advantage in distributed solar because efficiency is valued more highly than utility projects -- where cost is issue number one -- and customers value the company's superior technology. It's this distributed segment that management is keen to expand in the next year, hinting at a new manufacturing plant, and if you look at the numbers the plan makes a lot of sense.
Image source: SunPower.
Source: Fool.com