News Article | November 3, 2015
For investors in yieldco stocks, it’s been a quick and wild ride. Two years ago, yield companies like TerraForm Power Inc. and NRG Yield Inc. were the newest, hottest thing for energy investors -- a way to make steady returns off the booming clean energy sector. Share values soared after they were spun off by parent companies eager to cash in. Today, those same parent entities have put as much as $26 billion worth of sales to their affiliates on hold after the market value cratered. “Yieldcos are stranded right now,” said Ben Kallo, an analyst with Robert W. Baird & Co. in San Francisco. Given the drop in their values, yieldcos effectively have lost their sense of purpose, which was to use their shares to buy new plants. “The best course of action is to wait it out,” he said. A yieldco is a holding company for power plants that uses proceeds from selling electricity to pay dividends. Developers keen for new financing options sold their plants to the yieldcos and spun them off to investors seeking returns in a low interest rate environment. The swift change in fortunes came as the Federal Reserve prepares to raise interest rates, reducing the attractiveness of yieldco returns, and amid a broader selloff in commodities this year. For SunEdison Inc. and NRG Energy Inc., the drop in yieldco values has meant the removal of a willing -- and related -- buyer for power projects, sales that would fund future growth for the parent company. SunEdison offers up a cautionary tale for investors. The world’s biggest renewable energy developer said last month it doesn’t expect to sell any projects to its two yieldco units through 2016 after they slumped in value. The first, TerraForm Power, has plunged 56 percent from its $42.15 April peak and slipped 21 cents to $18.57 at the close in New York on Tuesday. That’s down from $25 at the time of its initial public offering in July 2014. The second, TerraForm Global Inc., has lost 47 percent since its trading debut in July and gained 9 cents to $8 Tuesday. Given the losses, Chief Executive Officer Ahmad Chatila has said SunEdison will look to unload assets to third-party buyers or hold them. At least 12,873 megawatts of projects by developers in North America such as NRG Energy Inc. and SunEdison were targeted by the companies’ yieldcos, according to data compiled by Bloomberg. Utility-scale assets had an average acquisition price of about $2.8 million a megawatt for solar and $2 million for wind at the end of 2014, according to BNEF. Using that estimate, the facilities that were targeted for sale to yieldcos are worth at least $26 billion. “It’s bad timing because demand for renewable energy is stronger than ever,” said Jay Jacobs, an analyst at Global X Management Co. in New York, which manages the only exchange-traded fund dedicated to yield companies. “When the market goes down, it can hurt the pipeline of new projects.” NRG Energy, the largest U.S. independent power producer, said in September that it’s not a good time to sell shares of its yield investment vehicle -- NRG Yield -- and the company can avoid going down this route until 2019 at least. Utility owners seeking to increase their clean energy holdings such as Southern Co. and Consolidated Edison Inc. will likely compete with private equity investors to snap up renewable projects, said Jay Rhame, who helps manage $2.5 billion including utility funds at Reaves Asset Management in Jersey City, New Jersey. Canadian Solar Inc., the third-largest panel maker, said last month it’s considering a private yieldco to take some of its operating power plant assets, since the public market is now shut. “If the market doesn’t come back, we’ll choose other ways to finance our projects,” CEO Shawn Qu said in an interview in Beijing. Parents of the yield companies hope they will be able to issue shares again to finance power plants at some point in the future. For the time being, they’re in a holding pattern. “Yieldcos were created to be financing vehicles and if they are not able to finance projects, then they are not really serving their purpose," said Rhame.
News Article | October 22, 2015
SUNworks' Agricultural and Commercial Projects Continue to Grow in Terms of Scope and Size SANTA BARBARA, CA--(Marketwired - October 22, 2015) - Solar3D, Inc. ( : SLTD), a provider of solar power solutions, announced today that its operating subsidiary SUNworks, has secured three large deals resulting in $4 million in sales, demonstrating the Company's expanding footprint and providing a strong indication of what the Company believes will continue to be strong month-over-month growth. Commerce Printing, a full service printing company based in Sacramento, contracted SUNworks for the design and installation of an approximately 644kW Sunpower Roof Mount solar system. The $1.54 million agreement is expected to generate over $4 million in energy cost savings over a 25-year period. DeRuosi Nut is a walnut processing facility located in California's central valley in Escalon. SUNworks will implement a 450kW roof mount Canadian Solar system designed to achieve energy cost savings of more than $2.6 million over a 25-year period. The third announced project is yet another to fall within the Company's exploding agricultural practice area. The partnership with Joe Heidrick Enterprises marks the fourth and fifth systems implemented by SUNworks for Heidrick, a well-known entrepreneur in the Sacramento region. The Company will provide the organization with two solar systems, a 151.2kW roof mount and a 428.4 roof mount and canopy. Both projects will total a contract size of approximately $1.6 million, and generate well over $5 million in energy savings over a 25-year period. "We are pleased that the progress in terms of project and sales volume achieved over the summer has continued into the fall, exemplified by these three deals," said Jim Nelson, CEO of Solar3D. "It is important to note that these three agreements, diverse in both organization type and of the systems to be installed, showcase SUNworks' depth of experience and customized approach to solar solutions. This is a key factor for why we expect to maintain our growth within the agricultural, commercial, and residential sectors, ultimately driving Company revenue and shareholder value," said Mr. Nelson. Solar3D, a leading provider of solar power solutions, is focused on the design, installation and management of solar power systems for commercial, agricultural and residential customers. Through its wholly owned subsidiaries, Solar3D is one of the fastest growing solar systems providers in California delivering 2.5 kilowatt to multi-megawatt commercial systems. Solar3D's technology division is developing a patent-pending 3-dimensional solar cell technology to maximize the conversion of sunlight into electricity. The Solar3D Cell collects sunlight from a wide angle and lets light bounce around in 3-dimensional microstructures on the solar cell surface. The Company's mission is to further the widespread adoption of solar power by deploying affordable, state-of-the-art systems and developing breakthrough new solar technologies. To learn more about Solar3D, visit our website at http://www.Solar3D.com. SUNworks is a commercial and residential wholly owned subsidiary of Solar3D, Inc. ( : SLTD), a leading solar power company and the developer of a proprietary, high efficiency solar cell. SUNworks is focused on the design, installation and management of solar systems for agricultural, commercial, and residential customers. The Company has delivered hundreds of 2.5 kilowatt to 1-megawatt commercial systems and has the capability to deliver systems as large as 25 megawatts. SUNworks serves commercial, agricultural and residential customers throughout California and Nevada. Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These risks include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products, and prospects for sales, failure to commercialize our technology, failure of technology to perform as expected, failure to earn profit or revenue, higher costs than expected, persistent operating losses, ownership dilution, inability to repay debt, failure of acquired businesses to perform as expected, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
News Article | March 4, 2015
A 14-megawatt plant in Miyagi prefecture uses panels supplied by Canadian Solar Inc., the Tokyo-based company said in a statement Wednesday. The other plant with 8 megawatts of capacity was built in Fukushima prefecture using panels made by Kyocera Corp. The two projects will take the company’s total solar capacity in Japan to 84 megawatts, it said.
News Article | August 19, 2015
Seven years ago, Kerry Adler watched as the disaster at Lehman Brothers Holdings Inc. scuttled his vision of renewable-power riches. Today, he has reassembled assets from the collapsed investment bank, laying the foundation for a green-energy colossus. Adler’s SkyPower Ltd. has lined up deals to build utility-scale solar farms in North America, Asia and Africa worth more than $12 billion — though how the projects will be financed remains a mystery. To date, SkyPower has completed 23 projects totaling 300 megawatts, ranking it just 34th among solar developers worldwide, according to Bloomberg New Energy Finance. But if Adler is successful in fulfilling all of his signed contracts, he will have more renewable power capacity than any operator currently has. SkyPower aims to “kickstart this market in the hope of bringing power to people that really deserve it,” Adler, 50, said by phone from Kenya as he wrapped up his second major deal this year. That was a $2.2 billion pact for 1 gigawatt of solar — about the capacity of a typical nuclear reactor, and massive for renewables — that will take years to build. SkyPower has also begun a joint venture in Mexico, and within two months expects two more deals in the Middle East and Africa, each about as big as the Kenya contract. SkyPower has projects with a total capacity of about 25 gigawatts in the works, and Adler says he can build 7 gigawatts within five years. Even that would make it far larger than the biggest developers of commissioned solar projects: China’s Huanghe Hydropower Development Co Ltd., which has 2 gigawatts, and Arizona-based First Solar Inc., with 1.2 gigawatts, according to Bloomberg data. In terms of projects in the pipeline, only Missouri-based SunEdison Inc. is bigger, with deals representing 53 gigawatts on the table. “The next question is what is your probability rating — how likely is it that those projects will get built,” said Michael Morosi, a solar-industry analyst at Avondale Partners LLC in Nashville, Tennessee. He called SkyPower’s ambitions “a stretch goal.” Adler founded SkyPower in 2003 after a stint as chairman of outsourcing firm Sitel Canada. Lehman bought a majority stake in SkyPower in 2007. Lehman’s collapse the following year choked off credit to SkyPower, which itself sought protection from creditors in 2009. An affidavit Adler filed to an Ontario court said SkyPower was in “dire financial straits,” with C$214 million in debt ($165 million). The SkyPower name and fledgling solar business were sold a few months later to a new majority shareholder, CIM Group, a Los Angeles private equity fund with $20 billion of assets in real estate and infrastructure. Adler was kept on as CEO, and he retains a stake in the business. He declined to reveal his ownership share or provide revenue or profits for the closely held company. With the backing of CIM, SkyPower sold stakes in 16 projects totaling 200 megawatts to panel maker Canadian Solar Inc. for C$185 million. Then it started bidding for bigger deals, and in May 2014 Adler won a $5 billion contract to provide 3 gigawatts of solar to Nigeria. Since then, Adler has wrapped up Kenya and other contracts with a total potential value of $7.2 billion. In Egypt, he has promised to build 3 gigawatts, and in India SkyPower has deals to provide 350 megawatts. SkyPower offered “a very good rate, and we are hopeful that they will fulfil the contract,” said Manu Srivastava, commissioner for clean energy in Madhya Pradesh, one of two Indian states where Adler has deals. Despite Adler’s success in getting contracts, it’s unclear whether he’ll secure financing, said Jenny Chase, solar analyst at Bloomberg New Energy Finance. Many such agreements have scant repercussions for companies that fail to get financial backing and build the promised installations, she said. “Developers go around signing deals with countries and anyone else who might buy power from them,” Chase said. “A lot of those deals won’t come off.” SkyPower says it has worked with “leading bankers to the renewable industry,” though Adler declined to name them. He wouldn’t say whether there are any penalties in his contracts, but he insists SkyPower can line up the financial backing it needs. “We wouldn’t spend the time, money and effort pursuing a market,” Adler said, “if we did not believe that we have the capability to finance the project.” This story has been corrected to show SunEdison's pipeline in gigawatts.
News Article | September 7, 2015
DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/jnhmkz/solar_power) has announced the addition of the "Solar Power Market in China 2015-2019" report to their offering. The solar power market in China to grow at a CAGR of 26.1% during 2015-2019. The report, Solar Power market in China 2015-2019, is based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects in the forecast period. The report also includes the key vendors operating in this market. The increase in the production of solar panels. Low raw material costs and support from the government make China an attractive solar panel manufacturing location, and this has grabbed the attention of several vendors. According to the report, the need for a reduction in environmental impact is one such driving factor in the market. The Chinese Government is also focusing more on the development of solar energy and its growth potential, and several government initiatives have attracted a number of vendors. Further, the report states that the growth of solar power in China could be hampered due to its inefficiency at night. Solar power is only 40-80% reliable, as it cannot generate electricity at night due to the non-availability of sunlight. Solar power market in China has been segmented based on: