SolarCity Corp (SCTY) Increases 2013 Guidance For New Installed Capacity To Over 278 Megawatts
SolarCity Corp (NASDAQ:SCTY) has recently updated their 2013 guidance. In the update, the company said that they are expecting to deploy more than the installed capacity from 278 megawatts to a much higher amount in 2014. The amount rumored is somewhere between 475 megawatts and 525 megawatts.
SolarCity sets up solar power systems on the roofs at a lower upfront cost. SolarCity owns the system and sells the energy produced to the home or business owner at a rate that is better than retail electricity costs from the provider or other providers in the area. What makes this model risky is that it relies on federal subsidies.
The 278 megawatt figure is 11% higher than what SolarCity was expecting as of January this year. In SolarCity’s Q2 earnings results, they reported doing between 70 and 77 megawatts in the third quarter, but they actually did 78 megawatts.
SolarCity had 72,506 energy contracts on-hand as of September 30th (end of Q3), which yields $1.737 billion over their lifetime. At the beginning of the year, SolarCity was trading at around $12 and now it closed at $46.54 today. This company is definitely a stock to watch.
[Source: Earth Techling]