A decision by the two largest U.S. solar manufacturers to form a joint venture to own and operate their power plants offers the companies more long-term cash and a low-risk opportunity for investors.
First Solar Inc. and SunPower Corp. are jumping on the yieldco train, an increasingly popular business model that lets renewable-energy companies generate money over the long term by keeping their power plants instead of selling them.
The move is a significant shift for the companies, which have previously sold most of their projects to power producers. The venture will be backed by decades-long contracts to sell electricity and may be worth as much as $2.8 billion.
The above is an excerpt of Top U.S. Solar Makers Plan Venture to Own Low-Risk Power Plants by Christopher Martin and Ehren Goossens for Bloomberg. Image Credit: oregondot via Flickr.