In this clip from "The High Energy Show" on Motley Fool Live, recorded on May 31, Fool.com contributor Travis Hoium discusses why he thinks SunPower (SPWR) is the best play in the residential solar space right now.
Travis Hoium: We need to have a renewable energy or a residential solar company, I think in this list, and the reason that I would pick SunPower today over companies like SolarEdge, Enphase, and even Sunrun is just valuation. I think all of those companies are. Sunrun is basically a similar business model and it's much more expensive than SunPower. I also think SunPower has more growth opportunity arguably, and then the other two they're component companies. I have a lot more questions about the durability, about making a component that goes into a solar installation. Having as much value and profitability as they have had long term, they've proven that they do have a durable business.
But I just a question, paying a really high multiple for that, so I think SunPower sits in a really powerful position as the company that's doing the installations that basically a technology company providing the quoting, providing financing, providing solar panels, not directly but indirectly. They are also doing a partnership now with First Solar, supposedly to make First Solar high-efficiency solar panels next year. Which I think could be really interesting for both of those companies if they can get it right. And First Solar is not a company that announces these things and then doesn't execute, so I think that right now arguably the best play in the residential solar space specifically.