Green New Deal Sparks Solar Energy Interest, Companies Exploring Solar Options
NetworkNewsWire Editorial Coverage
NEW YORK, March 4, 2019 Amid talks of global warming and the Green New Deal, solar energy may be a more viable — and profitable — investment than ever before.
- Plenty of resources and significant growth could mean bright future for solar
- SinglePoint acquisition called "phenomenal opportunity" for company to establish industry foothold
- Solar could be main power source of choice in the future, says industry leader
Recognizing a building interest in and support of renewable energy sources such as solar energy, savvy companies are identifying ways to establish a firm foothold in the sector. SinglePoint Inc. (OTC:SING) (SING Profile) just signed an asset purchase agreement with Direct Solar and AI Live Transfers, providing what has been described as the Lending Tree model for solar business. Last month, the AES Corporation (NYSE:AES) joined with Kaua'i Island Utility Cooperative (KIUC) to inaugurate the Lāwa'i Solar and Energy Storage Project, the largest operational solar and storage system in the world. Southern Company's (NYSE:SO) subsidiary Gulf Power has been testing its SHINES project, which installs batteries on the utility's side of homes to control when and how much solar is sent to the grid, saving customers from having to invest in and install their own systems. After acquiring the SolarWorld Americas facility, SunPower (NASDAQ:SPWR) is assembling its high-quality 19-percent efficient solar panels for commercial customers, leveraging U.S.-made automated stringing equipment and a local workforce of about 200. Another acquisition, the $1.6 billion purchase of Sempra Energy, has made Consolidated Edison Inc. (NYSE:ED) the second largest solar energy producer in North America.
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Industry Growth, Public Sentiment Supports Movement
Now seems to be the time for solar energy. According to a report from the Solar Energy Industries Association, the country's solar market capacity increased 13 percent year-on-year in Q1, accounting for 55 percent of all U.S. electricity added during the period — that includes fossil fuels and other forms of renewable energy. The Solar Energy Industries Association reported that, in 2018, a new solar energy project launched every 100 seconds.
In addition, Advanced Energy Now projects that the solar rooftop market will reach $4.14 billion by 2022, growing at a compound annual growth rate of 9.7 percent until then. The public appears to be behind that growth, with more than three-quarters of Americans feeling that their utility provider should invest more heavily in solar energy.
The resources are certainly available. According to the Office of Energy Efficiency and Renewable Energy, the amount of sunlight hitting the Earth every couple of hours could provide the world's energy needs for an entire year. And with the increased focus created by the New Green Deal and other environmentally friendly movements, this could be the year for the sun to shine on solar energy.
New Acquisition Changes Company Future
Recognizing the potential for tremendous development in the solar sector, savvy companies both in and out of the energy space are exploring ways to get involved. SinglePoint Inc. (OTCQB: SING) has seized the day and, with its announced Asset Purchase Agreement with Direct Solar and AI Live Transfers, appears to be making a strong move in the industry.
"This is a phenomenal opportunity for SinglePoint," said SinglePoint president Wil Ralston. "This changes the entire financial fundamentals for the company and enables us to continue to push forward with opportunities to continue increasing shareholder value and the overall value of SinglePoint."
Direct Solar has seen exponential growth recently. In the past year, the company has surpassed $1,500,000 in revenue and has posted approximately 60 percent gross margins. This month alone Direct Solar generated approximately $321,230. Company officials project record revenues for the company throughout the year after the acquisition is finalized.
Escalating Growth Means Huge Potential
At the United States Energy Association's annual State of the Energy Industry forum, SEIA president and CEO Abby Hopper declared the 2020s as "the solar energy decade," stating that solar would be the main power source of choice in the coming years.
Although the comment may sound bold, it may not be far from the truth. Total installed U.S. PV capacity is expected to more than double over the next five years, and by 2023, more than 14 GW of PV capacity will be installed annually. The U.S. Energy Information Administration projects that utility-scale solar's share of total generation in the United States will grow by 10 percent this year alone, and by 17 percent in 2020, joining wind as the fastest-growing sources of electricity over that time period. And some experts say those numbers aren't aggressive enough.