So, what exactly is involved in calculating solar panels cost in Pauma Valley? 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.
Pauma Valley 3 Undervalued Solar Leaders
SunPower Corporation (NASDAQ:SPWR) is a global solar energy solutions provider. It operates in the specialized semiconductor industry and was incorporated in 1985. It is headquartered in San Jose, California and has offices in North America, Europe, Africa and Asia. The company's operating activities include designing, manufacturing and supplying solar panels and solar systems to a wide range of clients. SunPower's customers range from residential to utility customers, including businesses and the government. The company also offers different products related to solar systems that include inverters and control chargers. SunPower Corporation reports its revenues based on geographical segmentation. The company generates about 70% of its revenue from America, 20% from EMEA (Europe) and 10% from APAC (Asia Pacific). The revenues from Europe and Asia have been decreasing over the years partly because of the growing American demand and partly because of the recent economic conditions of Europe. NRG Solar is a significant customer of the company, being responsible for 35% of the revenue generated from America or in aggregate terms 24.5% of the entire revenue. SunPower is backed by Total S. A., the fifth largest publicly-traded energy company in the world. Total has a controlling interest in the company and holds around 66% shares of SunPower.
SunPower Corporation is listed on NASDAQ and is currently trading around $30. 2013 proved to be a good year for the company as far as market performance is concerned. Shares of the company appreciated consistently during the year. In the first week of January, shares were trading at around $6 but now they are touching $30. The solar industry has been facing difficulty in the past two years but now it seems that the market is regaining confidence in the solar industry.
EPS of the company also improved during 2013 which caused the share price to increase. Revenues have also been improving over time and SunPower has posted a CAGR (compound annual growth rate) of 4.95% since December 2011. These growing financial figures were responsible for the positive trend of the share price.
It appears that the solar industry is starting to recover. The recent years have been rough, especially for American solar businesses because of the dumping exercises carried out by China. The subsidizing of solar companies by the government of China enabled them to sell below their production costs. This forced the American companies to cut prices and suffer losses. Oversupply in the industry was also a major factor in the reduction of prices and diminished earnings. The sales of Chinese solar firms in Europe are capped now due to limitations imposed by the European Union. Once the US and Europe have settled the Chinese solar panel issue, profits in the industry will begin to grow. Furthermore, China has banned the construction of any further solar panel factories. All these developments enhanced the investor's confidence in the solar industry which in turn is reflected in the market performance of the American solar companies. "We're at a point now where demand starts to be driven by cold, hard economics rather than by subsidies and that is a game changer," says Jason Channell of Citigroup.
The solar industry is poised for future growth. According to IEA, renewable electricity will surpass output from natural gas and double the generation from nuclear plants by 2016; becoming the second most important source of energy after coal. It is worth noting that the growth of renewable energy has always been underestimated in projections. For instance, in 2003, IEA predicted that non-hydro renewable energy would represent 4% of the global generation by 2030 but the industry reached that figure in 2003. According to BNEF, renewable energy will account for around 69-74% of new capacity added by 2030. Estimates by HIS predict the global PV (photovoltaic) market to grow by 17% in 2014. All of this points toward the fact that the solar industry will grow in the future.
BNEF also projects a 20% increase in PV installations by 2017. The emerging markets are USA, China and Japan, accounting for 52% of the solar demand in 2013 compared to 13% in 2008. Overall, the industry is set for growth but the question is, on whose expense? China and the US are the two main competitors in this industry. The relative strategies and actions of their governments could affect the companies based in both countries.
Global Production Leader
China is the largest supplier of PV modules. It plans to add 10 GW of solar capacity to the system each year until 2015, aiming for 35GW by 2015. The current capacity is 5GW. Chinese companies like Trina Solar, Yingli Solar and Hanergy have low production costs and are offered subsidies by the government. Therefore, they manage to compete on very low costs, rendering the US based suppliers unprofitable.
The excess production and oversupply of solar panels by Chinese manufacturers reduced the price margins in the industry. This oversupply has been adversely affecting the global solar industry for the past few years. The capping of Chinese solar panels by the EU and the restriction of the Chinese government on the establishment of new solar panel installations has helped in improving the conditions of the industry globally. This, however, presents a problem for the American solar companies because the Chinese suppliers are likely to converge upon the attractive US market. This development could pose a serious hindrance to the growth of US based companies. China still produces the cheapest cells and the efficiency of the cells is also competitive. American companies need to find a way to produce cost effective cells to counter China's competitive advantage. To encourage competition, The U.S. Commerce Department set anti-dumping duties ranging from 18.32% to 249.96% on solar-energy cells imported from China in 2012. This provides a level playing field as far as the American market is concerned. In Europe, the market is equally competitive for both US and Chinese firms because China's sales have been capped. In Asia, as expected, Chinese companies have a clear advantage over their American counterparts.
Residential Leasing Program
SunPower's leasing program is a competitive advantage for the company, as it allows the consumers to install their energy systems without paying all charges upfront. Consumers can save up to 10% or 15% on their electricity bill and be eco-friendly at the same time. SunPower is trying to bridge the gap further by lowering the costs of the system and improving the efficiency. It is aiming to enhance efficiency by 10% and reduce panel costs by 35% in 2015. The residential lease program has attracted 16,200 customers since 2012. "Our residential lease business remains strong, with demand outstripping our financial capacity in the first quarter," said Tom Werner, SunPower's CEO, during a call with analysts to discuss quarterly earnings. The company has been fuelling its finance requirements from Citi, Credit Suisse and recently from US Bancorp. These leases are a competitive advantage for SunPower because they help in reducing the overall energy costs of the consumer.
Maxeon cells that are being manufactured by SunPower are the most efficient cells to date. They are 24% efficient. Provided the company manages to reduce the production cost of the cell, they would be every one's first choice.
SunPower's Oasis C7 is a solar photovoltaic tracking system that concentrates the sun's power seven times to achieve the lowest levelized cost of electricity (LCOE) for utility-scale solar power plants.
The leading technologies offered by SunPower are its differentiated strength and can help the company to grow.
Research and Development
SunPower is involved in research with King Abdullah University and the French Laboratory of Interfaces of Physics and Thin Films. Total S. A. is also working in solar R&D which could also benefit SunPower. Total is working in collaboration with:
LAAS: (Laboratory for Systems Analysis and Architecture - Toulouse, France) to enhance the efficiency of photovoltaic modules using a systemic approach.
IMEC: (Interuniversity Micro Electronics Center - Louvain, Belgium) to decrease the amount of silicon needed for cells and improve their efficiency
LPICM: (Interface and Thin Film Physics Laboratory - Saclay, France), a joint research facility of the French National Center for Scientific Research (CNRS) and the Ecole Polytechnique's engineering school with a combined team working on crystalline silicon thin film technology.
SunPower's exposure to extensive R&D is reflected in its technologically advanced products.
P/E ratio of the company stands at 26.8x and PEG ratio at 0.76x. This indicates that the company's growth would be higher than what market is paying for a dollar of earnings. In simple terms, the market perception is not in line with future growth and we can say that the price is not perfectly correlated to the anticipated growth. Industry growth estimates are 17.09% but the street expects SunPower to grow by a staggering 30%.
With growth estimated at 30% for the next 5 years the multiplier to value the company should be higher than its P/E. That is why we are taking a relatively higher multiplier of 35x.
The mean price target is $35.7, using an average multiplier of 30x which is also above the current price. However, we will use a higher multiplier of 35x and a target price of $42. These estimates give us a 25% upside on SunPower.
SunPower Corp. is well-positioned in the solar industry. It has highly advanced and differentiated products, which, despite their high costs are capable of competing with the low cost and less efficient solar modules. With its intense exposure to R&D, we believe that the company will be able to compete on the cost basis in the near future. It has the potential to become the leader in the solar industry. With the anti-dumping legislation enacted in the US, cap on China's sales in the EU and plans to initiate global leasing, SunPower has an opportunity to penetrate these markets. The top quality cells, Maxeon, enable the company to compete with other American counterparts like First Solar. As far as Asia is concerned, the market will continue to be influenced by China until the solar giants of America can develop a cost effective solution.
Overall, the future of SunPower Corp. is bright whether fueled by their differentiated technology or by the backing of Total S A. The target price of the company indicates further price growth. So, our call on the shares of SPWR is a BUY.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.
3 Undervalued Solar Leaders
Science Fair Projects for Kids and High School Students
These 12 sites have hundreds of science fair projects, experiments, and advice to help you create the best science fair project you can. They suggest easy projects for kids and more challenging award-winning science fair projects for high school students. I've used many of them with my daughter and students.
Some of the sites provide ideas. Some give you step-by-step instructions for conducting experiments. Some provide kids advice on creating projects for science fairs. And some have forums where kids can get help when they're stuck. Many of these websites have videos to illustrate their experiments.
Note: Some of these sites have forums, which require registration with an email address. Children under age 13 need parent approval to register and submit questions to these forums.
#1 Science Buddies
Strength: Detailed science projects and advice for kids
I most often recommend Science Buddies to students and parents starting work on a science fair project. This is an award-winning site was created by the Kenneth Lafferty Hess Family Charitable Foundation, and has a wealth of resources.
First is the Project Ideas section where you can browse a list of projects by area of study. Or try the Topic Selection Wizard. You answer a series of questions about your science interests and grade level, then you get a list of projects best suited to your situation.
The projects are very detailed. Each includes the background, questions to consider, a list of required supplies and equipment, and step-by-step instructions for the experimental procedure.
The next helpful resource is an extensive Science Fair Project Guide. Here you'll learn more about how to use the scientific method to build your project, how to write your report, and how to display your work. There is also advice on safety procedures, selecting supplies, and techniques.
Finally, you can go to the Ask an Expert Forum if you need more assistance. Look to see if another student has asked a similar question that answers yours. If you've been unable to resolve your problem with the help of a teacher or parent, this group of volunteer scientists will do their best to help you.
The Science Buddies site is easy to navigate. And and the extent of their resources is incomparable.
#2 Cool Science Projects
Strength: Tips for creating award-winning science fair projects
The folks at Cool-Science-Projects.com will walk you through all the steps of creating a science project. You'll find advice and resources for simpler projects for a homework assignment, as well as advice on creating show-stopper competition projects.
There are lots of ideas here by grade level. A few of the ideas have step-by-step instructions for carrying them out. The site's biggest strength is the section it devotes to advice on creating a winning science fair project.
#3 Steve Spangler's Science Experiments
Strength: Entertaining videos of experiments to spark you own project ideas
Steve Spangler's Science Experiments is a particularly useful website for science teachers and homeschool parents. Steve is a teacher's teacher who is televised weekly in Denver and who has appeared on nationally televised shows, demonstrating experiments and explaining the science behind them. He also conducts teacher training seminars throughout the country.
On this site, you can access his collection of science experiments, recipes and projects. His library of projects is accompanied by videos of how to use materials and equipment to conduct experiments. He also has an online store of supplies and equipment.
Steve's delight in science experiments is entertaining, and he'll get you and your kids excited about their experiments too!
#4 Reeko's Mad Scientist Lab
Strength: Advice for creating a successful science fair project
Reeko is passionate about science. His passion is contagious at Reeko's Mad Scientist Lab. Reeko takes a humorous and engaging approach to getting kids interested in science.
Reeko's focus is science experiments. He does not provide guidance for school science projects. But his experiments are a breeding ground for science project ideas.
This award-winning site has games, puzzles and quizzes. And there is a new forum where you can ask a question if you're having problems with your experiment or science in general.
Videos of experiments with accompanying variation ideas for home experiments
DragonflyTV delves into experiments conducted by kids. The folks at PBS Kids Go! offer up plenty of videos of kids conducting experiments.
Then they provide ideas of variations your children can pick from for their own experiments. Or kids can give the Super Science Spinner a whirl until they find an idea they like. DragonflyTV also offers their 12 steps to science fair success.
#6 The Science Club
Strength: Detailed instructions, videos and illustrations of projects
Science Fair Ideas Exchange provides dozens of ideas for projects and experiments. If you need more than written explanations and illustrations, look here. The site is hosted by Bill Beaty of The Science Club.
Many projects are accompanied by a video that shows the key steps in creating your experiment or device. Projects are categorized as simple, medium and advanced.
Some of the video-taped experiments are hazardous, and should be supervised by an adult or conducted only by science teachers.
The Make It Solar Science Fair Information provides detailed information on carrying out a project using the scientific method and steps illustrated here. For teachers who have a website, Make It Solar provides the code to put the illustration at the right into your site with a link to its science fair info.
You'll also find planning guides, research tips, illustrations of display layouts. The site's focus is solar energy, so they furnish details on how to create several solar energy science projects.
#8 MadSci Network
Strength: Answers to your science experiment and project questions
Created by MadSci Network & Third Sector New England, MadSci Network is a great place to get answers to your science questions. Their extensive questions and answers archive can help you as you build your project.
The MadSci Library provides links to other resources by topic area. Look for answers to common science fair questions at the MadSci FAQ page.
If you can't find an answer in their archives of past questions, submit your own question.
Strength: Kids' comments on how the experiments worked for them
ZOOMsci from by PBS Kids & WGBH has dozens of science activities for children in grades K-8. The emphasis is on having fun with science experiments, as opposed to a rigorous scientific method.
Pick an activity, carry it out, then record your observations and comments on the ZOOMsci site. Personally identifiable information is not collected here.
#10 Scientific Methods at pppst.com
Strength: Lessons to help kids learn the scientific method
Teachers and homeschool parents can make use of the resources for elementary and middle school students at Scientific Methods at pppst.com. There are presentations to use when teaching the scientific method, as well as printable materials.
For kids, there are links numerous resources to help them learn and remember the steps contained in the scientific method.
One of Mr. Donn's greatest strengths is that his material is readable at the upper elementary age level. So adults don't have to do a lot of interpretation.
#11 Hands-on Activities
Strength: Detailed instructions for experiments
At Exploratorium's Hands-on Activities page, you'll find lots of ideas for experiments and science projects. Activities are grouped by topic such as food, living things, or sports science.
Each activity provides a list of needed materials and step-by-step instructions. Illustrations and photos accompany the instructions. A few even have videos.
Note that some of the activities are not true "activities" but rather information on how something, like cycling, works.
If you are making a model of the solar system to scale, you have to take a look at the Build a Solar System activity. There is a scale calculator that uses the diameter of the sun you plan to create to calculate the dimensions for all of the planets and orbit radius of each planet.
#12 Step-by-Step Science Fair Success
Strength: Advice for teachers and schools on organizing a successful science fair
Step-by-Step Science Fair Success is a guide for teachers and schools to use in planning a science fair. Lily Ning, a middle school teacher, discusses:
- Preplanning, sending out letters, and rules for group projects
- Creating guidelines, submission categories, and scientific methodology to be used
- Student tasks in proposing, planning, carrying out, and displaying project results
- Assessment using a rubric and grading sheets for the notebook, paper, and display
- Judging rubric
Directory of Science Project Websites
There are more than 30 science fair project and experiment websites listed in LearningReviews Directory of Science Project Websites. Some of the sites have simple experiments for kids to carry out at home. Others have more sophisticated projects for high school students and science fairs. Kids, parents and teachers write reviews about the sites they like best.
Other Science categories on the site help you to learn more about chemistry, astronomy, biology, etc., as you prepare for your science project.
Get Ready for Your Science Fair with Janice VanCleave
Janice VanCleave is a teacher, scientist and author of award-winning science books for kids. This virtual field trip is hosted on Meet Me at the Corner.org, where you can find more science fair project ideas.