SolarCity Corporation (NASDAQ:SCTY)
SolarCity is having an incredible day in the market today, and for good reason. Yesterday, the company announced yet another reason to be bullish on their stock. SCTY is now offering services to homeowners in Western Pennsylvania. Today, we'll talk about the news that was released, how the market is reacting to the news, and what we can expect to see from SCTY moving forward. So, let's get right to it...
SCTY Offers Solar Services To Homeowners In Western PA For The First Time
For the first time in history, homeowners in Western Pennsylvania will be able to take advantage of SolarCity's solar services. The company announced yesterday that it is making it possible for a large amount of the region's million plus residents to install solar on their homes. Perhaps more importantly, SCTY is making this possible with absolutely no upfront cost to the consumer and the ability to pay less than they would normally pay for electricity from utility companies. The new system will allow consumers to pay as little as $30 per month including design, financing, insurance, installation, monitoring and a high performance guarantee!
Yesterday, SCTY started to take its first orders for the newly available service. It also announced that it is expecting to begin installing the solar services for customers during the summer and it will take care of these customers on a first come, first serve basis.
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time there is positive news with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when there is negative news associated with a publicly-traded company, we can expect to see declines. Naturally, the news that was released with regard to SCTY was overwhelmingly positive. After all, the company will be adding a long list of new customers to its client database. So naturally, we're seeing incredible gains in the value of the stock. Currently (11:46), SCTY is trading at $29.30 per share after a gain of $1.02 per share or 3.60% thus far today.
What We Can Expect To See From SCTY Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from SCTY. Given that the company's services will cost less than standard electricity from utility companies, I'd imagine that we are going to see an overwhelmingly high demand from the Pennsylvania area that is being served. However, that's not the only reason I'm bullish on the stock.
You see, for a long time, the biggest problem at SolarCity had to do with debt. The company was taking out massive amounts of debt in order to make solar services affordable for consumers. While this worked to build the company, SCTY had to find another way to make it possible for residential customers to afford its services. So, it created securities for the funding of blocks of residential solar projects. Taking the risk out of their hands and making it possible for growth to continue. All in all, this is the majority of the reason I'm bullish on the stock, as this business model will allow the company to grow to new heights.