By Mark JohnsonNovember 16, 2016 9:08PMNEW YORK–(BUSINESS WIRE)–SunPower Inc. today reported financial results that showed it is still the second-largest solar energy provider in the United States, beating out a big rival in the solar market.
Solar is the third largest renewable energy source in the U.S., after wind and geothermal, and is expected to continue to grow at a steady pace as it continues to build its capacity.
The company reported its fourth quarter earnings this morning and showed an overall revenue of $1.4 billion, up 4.3% from a year ago.
Solar’s overall growth rate of 12.5% beat forecasts from some analysts, but the company was disappointed with lower electricity demand and higher cost of capital as it had to continue paying suppliers for its equipment.
“The solar market continues to evolve and is rapidly growing in terms of its market penetration,” SunPower Chief Executive Officer and Co-Founder and Chairman Steve Ballmer said.
“Our business continues to be driven by the adoption of more energy efficient products and the need for more sustainable technologies, as well as a focus on cost-effective installations and energy efficiency improvements.”
Solar accounted for 16.2% of U.A.E. households last year, and it is forecast to reach 16% by 2025.
The average cost of solar is $3.40 per kilowatt-hour.
SunPower currently sells solar power to customers in the state of Hawaii and has a long-term contract with the utility that will run through 2026.
SunPower’s overall revenue is expected rise from $3 billion in 2016 to $6 billion by 2027, and the company said it has been able to cut costs by 50% over the past two years.
SunEnergy Corp. , the second largest solar power provider in North America, said it was also pleased with the financial results and the results of its expansion into solar in the Midwest.
Sun Energy reported a $2.3 billion net loss in the fourth quarter of 2016.
The solar sector in the third quarter of 2017 was up 4% year-over-year and is projected to grow by 5% in 2018.
The solar industry will generate approximately $2 trillion in revenue in 2020, with the potential for an additional $3 trillion by 2028, according to Solar Energy Association data.
Sun Power expects that solar will be the fastest-growing renewable energy market in the country by 2032, with a projected $3-5 trillion in installed capacity.