NextEra Energy (NYSE:NEE) announced that its unit, NextEra Energy Resources has started the operation of a 74.9-megawatt (MW) solar energy generating facility in South Carolina. The Shaw Creek Solar Energy Center will generate cost-effective, clean energy for customers in South Carolina.
The facility is spread across 560 acres and features more than 270,000 photovoltaic solar panels that track the movement of the sun and convert energy into electricity.
Focus on Solar Energy
Through Energy Resources, NextEra is spreading and expanding renewable energy generation capacity. The company is expected to add 3,800-7,300 MW of solar power assets to its generation portfolio during the 2019-2022 time frame.
During the third quarter, Energy Resources added 747 MW of solar generation assets to its renewable backlog. Total renewable backlog at the end of the third quarter, including other renewable sources, was 12,300 MW.
Increase in domestic usage, and rising shipment of solar modules and panels are likely to have a positive impact on the performance of solar stocks. Plummeting prices of solar modules and panels, along with solar investment tax credit have been boosting growth in the solar space.
How is Solar Placed in Generation Mix?
Solar energy production is expanding in a rapid pace in a few U.S. states despite strong competition from natural gas and other clean sources of energy, which might weigh on its results.
The Solar Energy Industries Association industry group provided a roadmap to increase solar power contribution to 20% of U.S. power generation by 2030 from just 2% in 2018. According to the latest “U.S. Solar Market Insight Report” from Wood Mackenzie and SEIA, the contracted pipeline increased to a record 37.9 gigawatts, touching the highest in the history of U.S. utility solar photovoltaics.
U.S utilities like Dominion Energy (NYSE:D) , Exelon (NASDAQ:EXC) and Duke Energy (NYSE:D) , among others, are investing in solar energy and gradually increasing solar power capacity in their generation portfolio.
Zacks Rank
NextEra Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Movement
Shares of NextEra Energy have gained 32% compared with the industry’s growth of 11% in the past 12 months.
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NextEra Energy, Inc. (NEE): Free Stock Analysis Report
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