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SunEdison Inc (SUNE) Aims Solar Lights at California School Parking Lots

SunEdison Inc (NYSE:SUNE)
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SunEdison Inc (NYSE:SUNE) is looking to create some positive buzz and it could really use it right now. The company has taken a beating over the last several trading days.  With high hopes for a turn-around, the clean energy company announced it is working with 25 California elementary, middle and high schools on solar power purchase agreements (PPAs). The deal could save these schools more than $30 million over the next 20 years.

SunEdison Finally Gaining Positive News Amid Slump

SunEdison will be installing its signature high-performance solar parking canopies at each of the 25 campuses. The PPAs will see roughy 7.4 MW of solar at each of the parking lots. Motorists will also see benefits as these will offer shade for parked cars while creating solar energy.

SunEdison Inc (NYSE:SUNE)

The schools will not be required to make an up-front payment. The company will install, own and operate every system as the schools purchase the solar power at lower rates. It’ll be cheaper than what their local utilities offer. With this, it’s believed the schools in the five unified school districts – Dixon, Downey, Duarte, Livermore and Newman Crows Landing – will save millions of dollars on energy costs by the year 2036.

Each solar system is projected to produce enough energy to offset about half of all the power used at each school. This is equal to about as much electricity to power nearly 2,000 homes annually in California. The environment will also see a benefit as the solar panels will slash an estimated 136 million pounds of carbon dioxide emissions over this time.

The company states it plans to finish installation in the coming months.

Sam Youneszadeh, SunEdison’s regional general manager of its Western U.S. solar business, says the deal will allow the schools to see immediate and effective energy savings. He also referred to the state’s net metering policy as a valuable option for all schools in the state.

He says this deal will come up with solutions to two common problems: energy costs and shade for cars.

“We’ve helped more than 150 schools become not only more self-sufficient, but also enabled them to free up funds to maintain their buildings and ensure they continue to be safe and positive learning environments.”

Duarte Unified School District Superintendent, Allan Mucerino, said this kind of projects proves how districts can be financially self-sufficient. He added that it teaches students how to be conscious consumers when it comes to energy.

SunEdison’s Bad Start to 2016

Executives at SunEdison are likely wishing that 2016 would already come to an end.

The company hasn’t started off 2016 on a high note. Not only is it facing a couple of lawsuits, the financial health and viability of SunEdison is coming into question.

Year-to-date, the stock is down nearly 50 percent, and many don’t expect it to climb back anytime soon.

One financial analyst said earlier this year that investors should be cautious regarding the company’s 2016. Many are looking at its high debt and immense interest payments.

On Monday, a report was filed that compiled investor and analyst sentiment over the firm’s stock performance, and it wasn’t good. Essentially, the rest of 2016 doesn’t look good at all.

Sell-side analysts surveyed by Zacks Research expect SunEdison to post earnings per share of $-0.37 in its most recent fiscal quarter. Its quarterly results are scheduled to be released on Feb. 16.

Also, bearish and bullish prices peg the stock sit at $2 and $20, respectively, for this year. This is a big difference from just six months ago when it was trading at more than $30 a share.

At the time of this writing, SunEdison shares are trading at $2.74.

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Andrew Moran

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