How SolarCity Corp (SCTY) Can Transform Things?
Over the years, SolarCity Corp (NASDAQ:SCTY) has transformed things for people who think of having solar panels. The company has made a large impact in changing the mindset of the people about solar energy. Some five or more years ago, solar power panel were highly costly and that prevented homeowners from opting for it. The cost for the solar panel has ranged between $30,000 and $50,000 or even higher to save energy bill over a period of time.
Number Of Customers
At the end of the second quarter, SolarCity Corp (NASDAQ:SCTY) has 262,495 customers. That was possible by adding customers every month. Also, the company’s intention seemed to have been clear. That was to provide solar panels at an affordable means so that more and more people prefer the solar energy.
Elon Musk is the Chairman of the company and is the CEO of Tesla Motors Inc (NASDAQ:TSLA). There appeared to some near similarities. For instance, SolarCity is adding approximately 12,000 customers a month in the United States. On the other hand, Tesla is selling inching towards selling 12,000 vehicles per quarter. In the second quarter, it sold about 11,500 vehicles. Both report losses on a GAAP basis as they continue to reinvest. The energy firm is adding 500 positions every month and already employs 12,000 people.
Perfected A Combination Of Function
The energy company has focused on installing solar panels on the residences’ roof tops. It was not the inventor of the solar panel. However, it placed together to form a perfect combination of disciplines, as well as functions. That is vertical integration, economies of scale, efficient assembly apart from innovative financing techniques. These factors play a vital role in making big adoption rate a reality one. Now, SolarCity Corp (NASDAQ:SCTY) seeks to find ways to extend its market presence.
As a result, the energy firm established a solar lease tactics enabling people to put solar panels on their residence roof without any money and start realizing savings immediately. A research organization, GTM Research, pointed out that solar lease arrangement represented 72% of the new installed solar capacity last year for residential purposes. Of this, 34% belonged to the SolarCity, which is a market leader.
It is natural that people were attracted by the capacity to save money on energy without spending. However, establishing these systems is a capital-intensive business. Therefore, a developer will face the same kind of problem that any individual faces. That is to put up upfront cash while revenue will not materialize for months or even years. The payment will be in the form of power of lease power deals or tax credits.
SolarCity Corp (NASDAQ:SCTY) afound out a way to make the retail business something like a wholesale one. For that, it made a series of deals to fix solar panels on big clusters of military housing.
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