SolarCity Corp (NASDAQ:SCTY) wants to challenge Chinese firms with a mix of cheaper and more efficient modules. Electrek reports that SolarCity is working towards making solar modules with a 20% to 24% conversion efficiency rate at a cheap price of $0.50 per watt. The aim will give SolarCity a big edge in the market as it provides a mix of cheap price and high quality in its products.
SolarCity’s Silevo solar module production plant is still being constructed in Buffalo, New York but the firm has lofty aims for the plant. The plant is on track to become one of the largest solar modules plants in the world when it is online. The firm hopes to reach an output of 1GW (1,000 megawatts) of solar modules per year.
Cheap meets quality
Chinese-produced solar modules are hot in the market because they are cheap– the jury is still out on their quality. However, it appears that any cheapness that Chinese solar modules have over western modules is quickly lost because they are less energy efficient than western ones. In addition, they leave bigger carbon footprint because they are made from coal-fired electric plans.
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Bloomberg reports that flaws found in some Chinese solar panels can make them less efficient. Now, SolarCity (NASDAQ:SCTY) is set to fight Chinese modules with cheaper and better solar modules. Electrek sums up the firm’s ambitious plan saying, “20% efficiency would be great, but the company aims to eventually hit 24% with Silevo’s Triex technology. They think they could reduce the number of panels per installation by 25%. The breakthroughs would allow for 340 watt panels the size of current 250 watt high-efficiency panels.”
Analysts positive about SolarCity
In the light of SolarCity’s great plans and the recent crash in the stock after a panic selling, analysts are urging investors to buy the dip. A little under two weeks ago, the shares of SolarCity had a massive 8.54% crash after Jim Chanos revealed that he was shorting the stock. The stock climbed more than 15% in the week after, when the CEO reassured investors in his response to Chanos’ remarks.
Yet, some people are staying on the sidelines as they await see how the volatility in the shares of the firm will play out. Now, Stephen Byrd an analyst at Morgan Stanley has maintained his bullish thesis on SolarCity and he encourages investor to buy the dip. He says that links” between oil and solar products “is largely overblown in our view.” He has raised SolarCity (NASDAQ:SCTY) from “Equal-Weight” to “Overweight” and he has a $93 price target on the stock.