SunEdison Inc (NYSE:SUNE) has struck gold in California this month. The green energy firm announced Tuesday that it has reached a solar power purchase agreement (PPA) with Stockton East Water District in Northern California. This is the second deal based in California in a month.
SunEdison Makes Its Mark in California
The renewable energy company will install 2.2 megawatts high-performance solar panel’s in the district. It’s estimated that by going solar the water district can save around 20 million gallons of water each year and more than $9.5 million energy costs over the next 20 years.
According to a news release, the solar systems are projected to create enough energy to offset roughly half of the electricity used at the facility. This will be able to power 650 California homes per year, while avoiding 50 million pounds of carbon dioxide over two decades.
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Stockton East Water District will not have to face any up-front costs. The firm will install, own and operate each system, but the district will purchase solar energy at lower rates. The energy rates will be much cheaper than what’s offered by their local utility outlet.
The project is expected to be finished this year. SunEdison Services will operate and maintain the solar system and offer 24/7 management, monitoring and reporting services.
Sam Youneszadeh, SunEdison’s regional general manager of its Western U.S. solar business, promoted the energy benefits that entities can save by installing solar power. He added that it has installed solar at more than 1,000 locations in the U.S., which has led to the savings of 20 billion gallons of water.
Scot Moody, Stockton East Water District’s general manager, said the district couldn’t be any happier with SunEdison.
“With no upfront costs and savings starting from day one, we couldn’t be happier with SunEdison,” said Moody in a statement. “We’re expecting to save more than $9.5 million with this project. This is a great example of how we’re looking at new initiatives to save money and be good stewards of the environment.”
Last month, SunEdison announced it was working with 25 California schools on solar PPAs. The firm will be installing its solar parking canopies and create 7.4 MW of solar at each of the school’s parking lots. The five unified school districts could save at least $30 million over the next 20 years.
SunEdison’s Business Troubles in 2016
This could prove to be good news for SunEdison after it was reported the firm could see its Hawaii solar energy firm get tossed aside. After failing to reach an important financial milestone, Hawaii Electric Co. (HECO) wrote in a letter that it could terminate its PPA.
SunEdison has been selling off three solar farms in Hawaii worth around $350 million. It has also recently sold its Japanese division to Bangchak, an oil and gas company, for a reported $82 million.
The purpose of the two deals is to raise enough cash to reduce its $336 million debt bill.
In addition, SunEdison has been slapped with two lawsuits from investors and a hedge fund.
Year-to-date, SunEdison has seen its stock chopped in half to around $2.50 a share. On Tuesday, the firm’s stock was reiterated by Deutsche Bank to “Buy,” and also lowered the price target of SunEdison shares to $6.50, down from its previous forecast of $9.