Tomahawk, WI 10/15/2013 (BasicsMedia) – SolarCity Corp (NASDAQ:SCTY) trades in the solar energy industry, where its market cap is pegged at $3.55 billion. By the end of 2012, the company was providing solar energy solutions to customers spread in 14 states in the U.S. It designs, installs, sells and leases solar energy systems both to residential and commercial customers in the U.S. It has succeeded in giving customers an alternative so that they stop their dependency on the electric grid. The company has announced that it intends to improve its installation capacities. How has the stock responded?

 SCTY’s Solar Panel Installations to Grow By 70%

 The first response from the market when SCTY announced that there will be growth in its installations was for the stock to rise by around 24%. Home solar power has gained a lot of currency in the U.S, and this is expected continue up to 2014, when it will be the preferred choice of many homeowners across the nation. SCTY has announced that it expects growth in this sector to be by as much as 70% in 2014. This augurs well for SCTY and other providers in this industry since it means more sales, increased revenue, and improved profits going forward.

 The installation of solar panels is SCTY’s forte and strong point. Based on the current projections and trends, the company expects to install between 475MW and 525MW of solar panels in 2014. This is a massive improvement from the 278MW which the SCTY has installed and will continue to install until the end of 2013. SCTY has been a big beneficiary of the prevailing scenario where solar panel systems are gaining widespread acceptance around the nation. Its business model is quite attractive to homeowners in the U.S.

 SCTY’s Business Models Quite Appealing to Residential Homeowners

 Homeowners can now lease solar panels through SCTY’s business model, and this has been quite attractive to most of them. Homeowners find the lease option one they are most comfortable with since it helps them eliminate the need for incurring huge costs related to making permanent installations. They are now rushing to get these products from SCTY since they understand that it helps them reduce their power bills. SCTY’s impending growth is all due to the response of the market especially among residential homes which love the lease option.

 SCTY has not been a publicly traded company for long. It only went public in December 2012 but already appears to be doing well. It is outperforming even its own projections as seen by the 78MW worth of solar panel installations it undertook in September 2013 compared to its own e estimates of between 70MW and 77MW for the same period. This is the reason why it is saying that the growth of installations will be massive in 2014. This has helped shore up investor confidence where SCTY is concerned, a trend that will continue into 2014.

 SCTY still has great potential. If it continues to perform the way it has done in 2013, next year will be amazing for the stock. I think that this is a stock with tremendous potential and value going forward. Its short term and long term outlook is quite good.

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