NextEra Energy Unit Finishes Installing 500,000 Solar Panels

Florida Power and Light Company (“FPL”), an affiliate of NextEra Energy, Inc. (NYSE:NEE) , announced that it has completed the installation of 500,000 solar panels as part of its ambitious plan to add 1 million solar panels by 2016 end.

Details of the Announcement

The panels were installed in three new solar power facilities with a cumulative generating capacity of 223.5 megawatts (“MW”), which are located in Manatee, DeSoto and Charlotte counties. FPL currently has 110 MW of large-scale solar power in service, apart from numerous other smaller installations.

FPL is capitalizing on its ability to make bulk purchase of solar panels and passing on the cost benefits to its customers in the form of affordable clean energy. Note that FPL’s residential bills are the lowest in the state and 30% below the national average. The subsidiary is also making efforts to enhance the reliability of its electric grid and to lower fuel consumption and carbon emissions, while reducing costs for its customers.

In fact, NextEra Energy’s management believes that FPL is the forerunner of affordable solar power in Florida.

Investment in Clean Energy

With respect to clean energy, NextEra Energy’s investment in renewables over the last few years has been compelling. In the second quarter, FPL secured site certification for its natural gas power plant, which is part of the subsidiary’s ongoing investment in clean power generation as it phases out coal-fired plants. In addition, the construction of three cost-effective solar plants, aimed to triple the company’s use of clean energy, is also underway.

Moreover, NextEra Energy Resources expects to bring on line nearly 2,800–5,400 MW of new renewable projects over the 2017–2018 timeframe.

U.S. Industry Outlook

Increasing awareness of the drawbacks of fossil fuels, primarily coal, is spurring the demand for renewable sources of power generation, particularly solar. Per a U.S. Energy Information Administration report (EIA), total renewables used in the electric power sector of the U.S. are expected to increase 9.5% in 2016 and 5.8% in 2017.

Moreover, consumption of renewable energy, other than hydropower, is forecasted to grow 11.8% in 2016 and 11.1% in 2017. Solar energy will constitute 1% of the total U.S. utility-scale generation in 2017, indicating immense room for growth. Solar companies are thus benefitting significantly from the boom.

Zacks Rank and Key Picks

NextEra Energy carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same space include Spark Energy, Inc. (NASDAQ:SPKE) , DTE Energy Company (NYSE:DTE) and Korea Electric Power Corp. (NYSE:KEP) . While Spark Energy and Korea Electric Power sport a Zacks Rank #1 (Strong Buy), DTE Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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