Paradise Hills Best Solar Companies In

So, what exactly is involved in calculating solar panels cost in Paradise Hills? 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

Paradise HillsĀ 3 Undervalued Solar Leaders

Solar panels are a source of alternative energy and can be constructed at home and mounted on the roof of a house. Depending on the amount of panels that are used, a significant amount of money can be saved on energy bills by using solar energy. When constructing solar panels, the two main choices for the body of the panel are Plexiglas or tempered glass -- it is important to know the specifications of both types of glass to meet the needs of your solar panels. Advantages of Plexiglas Panels Plexiglas panels are made of acrylic material, which means that they can be cut easily with a band saw. Plexiglas allows about 90 percent of light rays to pass through it to the solar cells. Despite allowing this much light through to the solar cells, Plexiglas protects the solar cells very well from wear, ensuring that they last as long as possible. Advantages of Tempered Glass Panels Tempered glass panels are more durable than Plexiglas -- this is important to consider in residential neighborhoods, as a stray ball can hit a solar panel. A crack in a tempered glass panel will not impede the solar cells from working properly. Tempered glass is also easy to cut -- this makes it easier to fit on panels of all shapes. Disadvantages of Plexiglas Panels Plexiglas has a softer outer surface than tempered glass and can crack or scratch easily, leading to solar cells being blocked from receiving solar rays. Plexiglas does not bend easily, which requires that it be supported on the solar panel -- failure to provide proper support can result in the Plexiglas panel cracking. Disadvantages of Tempered Glass Panels The cost of tempered glass is typically higher than that of Plexiglas (tempered glass can cost up to $150 per sheet as of 2011) and does not allow as much light to penetrate to the solar panels, reducing the efficiency of the cells. Although tempered glass sheets are durable, there exists the risk that they may shatter, which could block the solar cells from receiving light. A sheet of shattered tempered glass will also allow moisture into the panel, which will eventually ruin the solar cells. Related Searches References RPlastics: Plexiglas Primer Energy Matters: Solar Panel -- Plate vs. Tempered Glass Promoted By Zergnet Comments Please enable JavaScript to view the comments powered by Disqus. You May Also Like Glass Vs. Plexiglass In general, glass is cheaper to purchase than plexiglass, is more scratch resistant and more easily recycled. Plexiglass, on the other hand,... Acrylic Vs. Plexi Glass Acrylic and Plexiglass are often used interchangeably in product literature concerning sheet plastic. While Plexiglass is made from acrylic, there are subtle... Types of Glass Solar Panels Solar panels come in many forms and are made from multiple components. The glass components of solar collectors vary in form and... Average Cost Of Solar Panels

Batteries At The Big End Of Town: Frequency Regulation And Management Of Solar And Wind Power Generation - LG Chemical Co., Ltd. (OTCMKTS:LGCLF)

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.

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