Zacks_Analysts' Blog : SunPower Launches Solar Panels - Analyst Blog

A Silicon Valley-based manufacturer of high-efficiency solar cells, SunPower Corporation (SPWRA) has launched the SunPower E18 & E19 AC Solar Panel series, integrating industry-leading AC micro inverters with its high-efficiency solar panels.

SunPower AC solar panels are integrated with the industry-leading SolarBridge Pantheon micro inverter that reduces installation time, complexity and overall cost of the system.

The AC panels have SunPower's 22.4% efficient patented Maxeon cell technology. The all-back contact Maxeon solar cell captures significantly more sunlight and conducts more electrical current than conventional solar cells. It has the world record for efficiency among commercially available, mass-produced solar cells.

The E18 & E19 AC solar panels offer increased flexibility to its residential customers, as panels with micro inverters can be easily installed on most homes, including those with complex rooftops or shading from trees, chimneys and other obstructions. Power generated by the rooftop solar system is optimized at the individual solar panel level, and delivers a greater overall energy yield. It is also easily monitored to ensure that maximum power is being produced.

SunPower’s customer base is spread across North America, Europe, the Middle East, Asia and Australia. The company is proactive in entering new markets. It is one of the most forward-integrated solar companies, focused on moving up the value chain. Going forward, we are bullish on the company due to its diversified channel strategy with a strong presence in the residential and commercial market, along with its status as a conversion efficiency leader.

However, its present premium valuation is unwarranted in light of higher cost structures vis-à-vis its peers, as well as an oversupply glut of solar panels in the market, subsidy roll back risk in Europe and rising competition. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

Headquartered in San Jose, California, SunPower Corporation designs, manufactures and delivers the highest efficiency, highest reliability solar panels and systems. It is the market share leader in the U.S. residential market. The company’s semiconductor-based solar cells and solar panels, which convert sunlight into electricity, are manufactured using proprietary processes and technologies. The company mainly competes with Suntech Power Holdings Co. Ltd. (STP).