A Brief Note On The Largest Solar Power Provider

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Introduction: SolarCity was founded in 2006 by brothers Peter and Lyndon Rive and are headquartered in San Mateo, California. Ever since 2007, SolarCity was the leading company for solar energy in California and holds its place as the number one residential installer in 2013 for the United States and also a second place for solar installation for the country. As the largest solar power provider, SolarCity is proud to provide clean energy for schools, homes, government and non-government organizations and businesses. The company serves not only in California, but in 18 other states and Washington DC, having 75 operating centers. SolarCity looks at their customer’s energy usage and provides improvements. As being the number one solar…show more content…
Recently, SolarCity announced their acquisition of ILIOSS, an energy company in Mexico which will give access to the Latin American market for providing solar power and bringing growth and earnings for the company. The company mainly concentrates on commercial and industrial markets for now rather than residential. This 10 million dollar acquisition puts SolarCity with companies such as Sungevity and SunEdison in the international market. Operating Performance: Quantitative Measures - SolarCity’s fiscal year is based on the calendar year. The last day of their fiscal year is Dec 31st. Their business model provides long term revenue streams through customer leases and as such, each SEC filing has the following cautionary statement, “Traditional earnings measures such as operating income, earnings before interest, depreciation, and amortization (EBITDA), and earnings per share (EPS), are not the most effective tools for capturing the full expected lifetime cash flow and return on investment,” (Solarcity.com, 2015). With that being said, exhibit 1-A contains SolarCity’s quarterly financial metrics since they first went public in 2013. Exhibit 1-B compares SolarCity’s 2014 financial performance with competitors and industry averages. Exhibit 1-A: Quarterly Performance Solar City Qtrly Performance Jun '13 Sep '13 Dec '13 Mar '14 Jun '14 Sep '14 Dec '14 Mar '15 Jun '15 Revenue (millions) 37.90 48.60 47.30 63.50 61.30 58.30
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