Sunedison Inc (NYSE:SUNE) the largest global renewable energy development company, today announced that it has started construction on a 4.5 megawatt (MW) DC solar project in Dighton, Mass. for the Brockton Housing Authority. The housing authority, which serves around 7,000 low and very low income residents, signed a 20-year power purchase agreement with SunEdison last year, and anticipates saving more than $14 million on energy costs over the period of the agreement.
SunEdison is collaborating with ISM Solar, a national developer with industry-leading expertise in solar project management, to develop the project. ISM initiated the project and will complete permitting and interconnection and perform site control. SunEdison will supply its high performance solar panels and perform best-in-class construction services, and 24/7 monitoring and maintenance services.
“We’re seeing strong demand for SunEdison’s power purchase agreement solution from entities like the Brockton Housing Authority that stand to save millions of dollars by going solar,” said Tom Leyden, SunEdison’s vice president of partner development. “Working with local development partners like ISM is a great way for SunEdison to stay connected to smaller local markets while maximizing cash efficiency. The result is a project where the customer gets the benefit of local expertise married with the staying power and best-in-class development practices of SunEdison.”
“The customer is the ultimate winner in this collaboration,” stated Greg Lucini, ISM Solar’s chief executive officer. “A seasoned developer like ISM, working in tandem with a world class leader like SunEdison, means that the project will be completed quickly and to the highest quality standards. In addition, the Town of Dighton has been great to work with and will benefit from annual tax payments over the next 20 years.”
The solar power plant will supply Brockton Housing Authority with electricity through a state-wide program called “virtual net metering” which allows customers to enjoy the savings and environmental benefits of solar even if they are unable to install a system on site. The solar system is built in the same region as the customer, and clean energy is delivered over the existing power lines.
The 4.5 MW solar power plant is expected to generate enough clean and reliable electricity each year to offset approximately 50 percent of the housing authority’s electricity usage. Additionally, the project is expected to reduce carbon dioxide emissions by approximately 80 million pounds over the period of the agreement—the equivalent of taking more than 7,500 cars off the road or powering more than 4,900 homes for one year.
Construction is targeted for completion during the first half of 2016. Operation and maintenance of the solar power plant will be performed by SunEdison Services, which provides global asset management, monitoring and reporting services. (Original Source)
Shares of SunEdison are currently trading at $3.79, up $0.22 or 6.16%. SUNE has a 1-year high of $33.45 and a 1-year low of $2.55. The stock’s 50-day moving average is $6.12 and its 200-day moving average is $17.15.
On the ratings front, SunEdison has been the subject of a number of recent research reports. In a report issued on December 1, Credit Suisse analyst Patrick Jobin maintained a Buy rating on SUNE, with a price target of $25, which represents a potential upside of 600.3% from where the stock is currently trading. Separately, on November 30, Deutsche Bank’s Vishal Shah reiterated a Buy rating on the stock and has a price target of $9.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Patrick Jobin and Vishal Shah have a total average return of -10.6% and -19.1% respectively. Jobin has a success rate of 30.0% and is ranked #3406 out of 3642 analysts, while Shah has a success rate of 26.4% and is ranked #3628.
Overall, 2 research analysts have rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and 8 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $12.00 which is 236.1% above where the stock closed yesterday.
SunEdison Inc is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets. The Company is also engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry.