Chula Vista Solar Calculator

So, what exactly is involved in calculating solar panels cost in Chula Vista? When thinking about solar power very few people know the way the cost of solar panel systems is actually measured. Or even, for that matter, do we automatically grasp the connection relating to the cost of solar power and the value of solar power. We all know that gasoline prices are in dollars per gallon. We likewise are all aware of approximately how far we’ll be able to drive after spending 40 bucks for a tank of gas. In contrast to a tank of gas, the value of which can be consumed pretty much instantly, solar panels deliver their value across a period of time.

How Much Does It Cost To Install A Solar Panel

Chula Vista 3 Undervalued Solar Leaders

Recent Macro News

Source: Wallstreetdaily, SCMP, CNN Money

The last 2 quarters have seen influential countries such as china, India and Saudi Arabia announce heavy commitments to investing in solar infrastructure. The news isn't particularly surprising if you are aware of the hazardous pollution levels in China and India. China, the most populated country in the world, claimed that it will spend over $361 billion on renewable energy development by 2020. According to China's National Development and Reform Commission (NDRC), 40% of that spending will go towards solar and that will result in more than 1000 major solar plants, boosting china's solar capacity by 5 times.

Khalid Al-Falih, the energy minister of Saudi Arabia, announced that the oil capital of the world plans to spend as much as $50 billion on renewable energy. The short-term goal is to generate 10 GW of electricity through solar and wind by 2023. Al-Falih remarks that the long-term goal is to have renewable energy account for 30% of the country's total energy consumption by 2030.

Forbes states that India has installed 5.4 GW in 2016, and the Ministry of New and Renewable Energy estimates 15 GW (estimates to around 22% of global demand in 2017) and 16 GW of solar installation for the next two years. The Indian Government aims to accumulate 100 GW of solar by 2022, a feat which will require around $90 billion in total.

The combined future solar spending by these three countries, as well as the rest of the world, is an enormous pie to split between the big players in industry. In this article, I will use fundamental data to compare First Solar (NASDAQ:FSLR), Canadian Solar (NASDAQ:CSIQ) and JinkoSolar (NYSE:JKS), 3 heavily undervalued solar leaders which are well positioned to meet increasing global demand. All financial figures are expressed in USD via Bloomberg.

Market Cap

Source: Bloomberg

First Solar's $3.94 billion market cap is by far the largest in this group. First Solar is the only company on this list headquartered in the US and has an American management team. Canadian Solar's $855 million market cap is the next highest. Canadian Solar is based in Guelph, Canada, but the management team and production is predominantly Chinese. JinkoSolar's $542 million market is the lowest of the bunch. The company is entirely Chinese from its headquarters to production.

Revenue & Gross Profit & Net income

Source: Bloomberg

Please note that analyst consensus Q4 revenue and net income are used to estimate full-year 2016 revenue for Canadian Solar and JinkoSolar. On a GAAP basis, First Solar reported $2.951 billion in revenue and $704 million in gross profit for 2016. Net income came out to be -$382 million due to a $729 million unusual expense which we believe to be asset write-offs. Canadian Solar is expected to earn $2.871 billion in revenue, $459 million in gross profit and $89 million in net income. JinkoSolar is projected to pull in $3.331 billion in revenue, $647 million gross profit and $125 million in net income. JinkoSolar leads the pack in revenue and net income due to the tremendous demand for solar in China, where JinkoSolar conducts a majority of its business. First Solar boasts the highest gross margin at 24% while Canadian Solar and JinkoSolar have gross margins of 16% and 19%, respectively.

Source: Bloomberg

Cash & Debt

Source: Bloomberg

Looking at the balance sheets of these 3 companies, it's clear why First Solar is trading at a higher earnings multiple compared to its peers. First Solar currently has more than 10x cash on hand than total debt and actually received $5 million in interest income in 2016. Canadian Solar has $481 million cash on hand and a heavy debt load of $2.344 billion. The company is paying an estimated $52 million in interest expense (first 3 quarters annualized). JinkoSolar has $2.663 billion in debt, the highest of the three and dwarfs First Solar's debt of $188 million. JinkoSolar is estimated to pay a substantial $95 million interest payment in 2016 (first 3 quarters annualized). Although Canadian Solar and JinkoSolar are carrying high levels of debt, one must note that Canadian Solar and JinkoSolar have historically financed their projects with debt rather than equity.

Current Price vs. Book Value

Source: Bloomberg

All three solar leaders are currently undervalued relative to their book value. First Solar, with over $2.4 billion in retained earnings, is trading 22% below book value. JinkoSolar has been GAAP profitable for the past 10 quarters and accumulated $339 million in retained earnings during the same period. JinkoSolar is currently trading 28% below book value. Canadian Solar at its current price of $15 is trading just $1 below its book value of $16, but the company has been steadily growing its retained earnings from $47 million in Q4 2014 to $294 million as of Q3 2016.

Analyst Targets

Source: 4-traders

First Solar, with 22 covering analysts, has 5 buy ratings, 4 sell ratings and 13 hold ratings. First Solar is currently trading right around the analyst target of $35.9. Canadian Solar, with 2 buy ratings, 2 sell ratings and 7 hold ratings, is trading slightly below its price target of $15.2. JinkoSolar, with only 7 covering analysts, has 3 buy ratings and 4 hold ratings. The analyst target of $23.2 represents a 36% upside from the stock's current price.

Personal Holding

Although we believe all three stocks have bright futures, we currently hold Canadian Solar only. Although Canadian Solar's P/E is not as low as JinkoSolar's and the company's book value is below both of its peers, we remain enticed by Canadian Solar's diverse project portfolio. Since its inception, 100% of JinkoSolar's revenue came from the People's Republic of China. In 2016, 83% of First Solar's revenue came from the US, 5.4% came from India and 11.7% from various other countries. For the 12 months ending 9/30/2016, Canadian Solar derived 41.7% of its revenue from Asia, 46.8% from America (a good portion of which is from Canada) and 11.5% from Europe + other foreign countries. We believe Canadian Solar's diversified global presence positions the company tremendously to meet the increasing global demand for solar. We will continue to buy on dips and may initiate a position in JinkoSolar in the near future.

Source: Bloomberg

Disclosure: I am/we are long CSIQ.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Solar Price

Ways to Save Mother Earth

Solar Panel image by kuhar from Fotolia.com Although it comes with a steep price tag, building your own solar energy system comes with many benefits. Depending on how much installation you do yourself, your payback period can be dramatically reduced. Building your own system requires advanced knowledge of home-improvement techniques, including electrical, circuitry and roofing. This project may take four to five full days of work, depending on how large of a system you are installing. Things You'll Need Pen Paper Solar panel kit Mounts Silicone with caulking gun Power drill Heat gun Charge controller Deep cycle batteries Insulated electrical wire AC inverter Wire strippers Soldering iron Adhesive-lined heat shrink tubing Electrical tape Write down on a sheet of paper the appliances that you are desiring to operate with solar power. Write out the total amp rating of each appliance as well as the number of hours that each appliance will operate throughout the day. Multiply the the amp rating for each appliance by the number of hours you plan to operate it. This number will indicate the total amp hours that you need to provide through your solar power system. Generally, the total amp hours from your appliances should equal no more than 50 percent of the total capacity of your battery bank. For example, if you plan to use your appliances for 200 amp hours on a daily basis, your battery bank should a charge up to 400 amp hours. This will help to determine the number of batteries that you need, however, the amperage on deep cycle batteries vary depending on which product you purchase for your system. Mount the solar panels on the south-facing portion of your roof-top by using a power drill and the mounting kits provided with the solar panels. Solar panels should be angled so that they match the latitude of your location, plus or minus 15 degrees depending on seasonal adjustments for the height of the sun. For example, if you live at a location where the latitudinal coordinate is 30 degrees, the panels should be mounted 30 degrees from horizontal. If your kit includes the ability to change the angle at which the solar panels are mounted, you should add an additional 15 degrees during summer months and subtract 15 degrees in the winter, when the sun's height is lower in the sky for a shorter duration of time. Solder 12 gauge electrical wiring to the two output terminals found on the side of the solar panel. The black 12 gauge wire should continue from the positive terminal of the solar panel and the white wire should connect with the negative terminal. Use the green wire to connect to the solar panel's frame as a way to ground the wire. Expose at least one inch of the copper wire by stripping the sheath of the two wires you are joining together. Twist the two wires being joined together into an "X," wrapping the first wire's end along the length of the second wire until the first wire's end is completely wrapped around the second wire. Repeat the same process for the second wire. Heat the joint by holding the soldering iron beneath the wire joint. Apply the soldering iron and solder to the top part of the joint, adding more of the soldering wire until the joint is completely covered with solder and the exposed wires are no longer visible. Wrap adhesive-lined heat shrink tubing around the newly soldered joint, heating it tubing with a heat gun until it covers the solder. Connect the ends of the extended wiring coming from the solar panels to a charge controller, which has screw-on connections for input wires. The charge controller prevents the deep-cycle batteries from becoming overloaded, thus reducing the maintenance and cost of your solar power system. The charge controller should also be stored adjacent to the batteries. Wire the deep-cycle batteries together so that they form a circuit by using either a parallel or series pattern. Use 8-gauge wire to connect the batteries. To connect the batteries into a series circuit, which doubles the voltage of the system, wire the negative terminal of one battery to the positive terminal of its adjacent battery. Continue this pattern until all terminals are connected. To connect the batteries into a parallel circuit (which doubles the amperage of the system) connect the positive terminal of one battery to the positive terminal of its adjacent battery. Do the same for the negative terminals on your deep-cycle batteries as well. Install the input wires from the AC inverter, which are equipped with screw-on joints to mate with the battery terminals. The inverter will change the Direct Current from the batteries to Alternating Current, which is a usable form of electricity that home appliances utilize. Connect the ends output cables of the charge controller to the deep-cycle battery circuit. The charge controller's output cables, black for negative and red for positive, also screw onto the battery terminals with a screwdriver. Other People Are Reading How to Get 48V out of a 12V Solar System How to Self-Install Solar Electric Plug your appliances into the outlets of your AC inverter and turn the inverter on. Tips & Warnings Currently, the 3-stage charge controller is the industry standard, however, using a Maximum Power Point Tracking controller will provide greater efficiency, especially if you are installing a larger system. Although a solar system is quite complicated to build, thinking of it in terms of "layers" may be helpful. The sun powers the solar cells, which are connected to a charge controller, which connect to the batteries, which connect to an inverter. Related Searches References Solar 4 Power: Solar Power Don Rowe: Power Inverter FAQ Green Living Tips: Solar Power Basics Photo Credit Solar Panel image by kuhar from Fotolia.com Promoted By Zergnet Comments Please enable JavaScript to view the comments powered by Disqus. Resources Aaron Cake: Soldering Electronics Solar 4 Power: Batteries Free Sunpower: FAQ You May Also Like How to Build Solar Panels for Electricity With energy rates on the rise, building your own solar panel is an economical, smart, and rewarding way to produce your own... How to Understand & Install Your Own Solar Electric System The most visible components of a photovoltaic (PV) energy-generation system are the solar panels. You usually don't see the devices that convert... How to Build Your Own Solar Energy You can harness the energy of the sun to use at home through solar panels. Commercially available solar panels are expensive, and... How to Build Cheap Solar Energy Systems You may have been considering solar power for some time but have been putting it off because of the high initial investment....

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