Solar Technology and Implementation
After the release of a new report from the International Energy Agency, it was revealed that when factoring in the risk-reducing financial incentives and policies implemented by governments around the world, solar energy has become the cheapest form of electricity for major companies to build more of. In fact, according to the report, solar energy was between 20%-50% cheaper than the International Energy Agency (IEA) had expected, leading to a more optimistic future outlooks on the industry as a whole. This has led to expectations from the agency for up to 43% more solar energy in 2040 than it had previously projected back in 2018. While the report is extraordinarily optimistic, the actual implementation of solar energy worldwide might be even more positive. For the United States, solar energy has exploded in the last four years. In fact, since 2016, this has led to a nearly 284.5% increase in solar energy production. In states like Kansas, Iowa, and North Dakota, over 50% of the total energy consumed by each is produced from solar and wind energy. Elsewhere in the world, this has been taken even further — on October 12, all of South Australia’s energy demand was covered by solar. The growth in solar energy has resulted in major gains from a variety of different companies.
First Solar Inc.
First Solar Inc. is one of the companies near the forefront of the solar energy sector, with its stock seeing positive movement up to 52.48% higher than it was trading at the beginning of 2020. In its report from Q2, First Solar saw net sales reach an incredible $642 million, which translates to about $0.35 of net income per share. In quarter over quarter revenue comparison, First Solar made a whopping $110 million more. More important than this, however, is the massive increase in power created by the company. First Solar has shipped 11.9 gigawatts worth of solar panels through August 20th, which already surpassed all of 2019’s 11.7 gigawatts worth of solar panels. This means that the rest of the year will create record highs of gigawatts shipped from First Solar. Another major development for First Solar is its recent partnership with General Motors. This partnership includes a 180-megawatt power purchase from First Solar, with the company being responsible for outfitting three different General Motors plants in the midwest.
SolarEdge Technologies has seen incredible growth and expansion over the years. The company has seen its revenue shoot up 639% since 2015. In 2019, that meant SolarEdge earned $1.43 billion, up over $500 million from 2018. In their report from Q2, they generated $331.85 million, up from $325.01 million in 2019, which remains especially impressive considering the economic hardship brought on by the COVID-19 pandemic. Beyond just the numbers, SolarEdge is expanding its revenue sources from just module-level power electronics into fields such as electric vehicle chargers and powertrain components. This should further expand SolarEdge’s already impressive $13.761 billion market cap.
First Solar and SolarEdge are just two of an ever-growing field of solar companies. With the potential for solar power as a main energy source for the world in the coming decades, this growth trend is likely to continue. Expectations for the industry as a whole remain extremely optimistic, especially as more and more companies look to solar to be a major way to reduce carbon emissions and save money in the long term. The technology is making solar energy cheaper to produce, easier to acquire, and more efficient than ever before, with plenty of room to go farther. If solar companies continue to push the limits on all of these factors and demand increases, there will be incalculable amounts of revenue just around the corner.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.