Fairbanks Ranch Solar Energy

So, what exactly is involved in calculating solar panels cost in Fairbanks Ranch? 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.

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Fairbanks Ranch 3 Undervalued Solar Leaders

Hemera Technologies/AbleStock.com/Getty Images With increasing concern about urgent environmental issues like global warming, many people have turned to local initiatives to reduce their environmental impact. Home energy use, the most local of environmental impacts, has become one focus of environmental advocacy. Although the feasibility of domestic renewable energy systems varies widely depending on local conditions and house architecture, many homes can operate green energy systems, like wind and solar power, to offset all or part of their home energy use. Best of all, these systems are relatively easy to install, with the connection of wind turbines and solar panels to a battery pack requiring only a few simple steps. Things You'll Need Electrical cable Wire cutters Wire strippers 2 Ammeters 2 Charge controllers 2 Fuses Electrical tape Solar Panels Cut lengths of electrical wire to make each of your connections. You will need a total of eight lengths, two for each connection between components (panels, ammeter, charge controller, fuse and battery pack). Cut the lengths to the appropriate distance between each of the components in your home layout, leaving a bit of extra slack in case you have to make changes. Strip the ends of each length of cable with a pair of wire strippers, exposing the interior copper wire in order to make electrical connections. Connect one length of cable to the positive output from your solar panel by wrapping the exposed copper wire around the output. Connect the opposite end of cable to the positive input in your ammeter, a device used to measure electrical current that will be useful for system maintenance. Insulate both connections with electrical tape. Connect a second length of cable to the negative output from your solar panel, with the opposite end connected to the negative input in the ammeter. Insulate the connections with electrical tape. Connect the ammeter to the charge controller by repeating the process, running cables between the appropriate inputs and outputs in the two devices and insulating the connection. Connect the charge controller to the fuse inputs with another two lengths of wire, insulating all of your connections. The fuse will interrupt the current in the case of unexpected power surges and protect your system. Connect the fuse outputs to the appropriate terminals in the battery using the last two lengths of wire. Connect the positive output from the fuse to the positive terminal in the battery and the negative output to the negative terminal in order to close the circuit. Insulate all your connections with electrical tape. Other People Are Reading How to Combine Solar & Wind Power How to Use Solar Panels & Wind Turbines Together Adding a Wind Turbine Cut eight lengths of electrical wire to make all of the necessary connections and strip the ends with a wire stripper. Wind turbines are a popular choice for home renewable energy systems. Connect the outputs from the wind turbine to a separate ammeter in order to monitor the current from the wind turbine without interference from the panels. Make and insulate the connections just as you did with the solar panels. Connect the wind turbine ammeter to a second charge controller, a device that regulates power flows during changes in wind or solar conditions in order to avoid damage to your batteries or wind turbine. Connect your wind turbine charge controller to a second fuse, allowing you to interrupt the flow from either the wind turbine or the solar panels while still accumulating power from the remaining system. Connect the fuse to the battery pack. You can use the same batteries for both systems or separate them if your want to store energy in different voltages. Tips & Warnings Make sure your energy generators (solar panels and wind turbine) are producing energy with the same voltage as your batteries. You can modify the connections in your battery pack with series and parallel circuits to manipulate voltage and accommodate the voltage from your generators. Your generators, however, must be compatible and have the same voltage in order to feed the same battery pack. Consider separating the battery packs from wind and solar energy if they use different voltages. Be sure your solar panels and wind turbine are not generating energy while you make the connections. Always be careful when handling electrical wire, and only touch the interior copper wire when absolutely necessary. Related Searches References Vela Creations: How to Build a Chispito Wind Generator Free Sun Power: Solar Power System Free Sun Power: Solar Energy System Example Wiring Diagram Photo Credit Hemera Technologies/AbleStock.com/Getty Images Jupiterimages/Photos.com/Getty Images Promoted By Zergnet Comments Please enable JavaScript to view the comments powered by Disqus. Resources Battery University: Series and Parallel Battery Configurations Solar Price

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.

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