We're winding down a phenomenal year for solar stocks, and there don't appear to be any limits to the industry's potential. The fact that solar power is now competitive with the grid around the world means more countries are installing solar, and as they do, these once struggling companies will improve financially.
The simple fact that banks and investors are lining up to finance solar projects shows how far the industry has come.
SolarCity lines up more financing
Speaking of financing, SolarCity (NASDAQ: SCTY ) lined up another $200 million in financing via a three-year credit facility through Bank of America Merrill Lynch. The money will be used to fuel growth by paying for working capital.
There doesn't appear to be any issues for SolarCity in financing growth, and with a securitization deal already completed this year, the company is on its way to a goal of 1 million solar customers by 2018.
Utility-scale projects continue to drive demand
There were a number of significant project signings this week. Here are the more notable deals.
- Yingli Green Energy (NYSE: YGE ) and a consortium it's working with won a bid to build 233 MW of projects in Algeria. The projects will be completed in 2014, and this win alone will account for about 10% of Yingli's annual module production.
- Canadian Solar (NASDAQ: CSIQ ) signed a supply agreement with Zhenfa New Energy Science & Technology to supply 100 MW of modules for three projects in China. The modules will be shipped over the next two months.
- Trina Solar (NYSE: TSL ) signed supply agreements for 25 MW for the Bangchak Solar Energy Project in Thailand and a 1 MW project in Jordan.
- SunPower (NASDAQ: SPWR ) signed a deal with Ecomax Japan to supply 20 MW of E20/327 solar panels to projects in Japan.
Utility-scale solar projects are still a large percentage of the solar projects built around the world, and winning these projects is a key to manufacturers.
How to play U.S. energy now
The U.S. energy boom is here, and smart investors are getting out in front of it. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.