SunPower (NASDAQ:SPWR) announced this week that it is building a 50 MW power plant that will sell power to Xcel Energy (NYSE:XEL), a project that shouldn't be overlooked by investors. SunPower recently announced a YieldCo/HoldCo strategy that has the company building projects on its balance sheet to generate more value for shareholders. Thus far, the plan is to hold this project on the balance sheet to retain value.
Last quarter, SunPower's management predicted that a utility-scale project like this one would generate around $2 of retained value per watt, or about $100 million from this one project alone.
Solar specialist Travis Hoium covers more on this project and what to look for at SunPower in the video below.
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Travis Hoium manages an account the owns shares of SunPower and is personally long both SunPower shares and options. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.