3 Reasons SunPower Corporation (SPWR) Is Leading the Charge in Solar

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Research and development
To stay ahead in solar, you have to keep improving your products and cut costs, all at the same time. SunPower does both by investing in R&D, something few other solar manufacturers do.

In 2012, SunPower spent $63 million in R&D, cutting costs 25%, rolling out third-generation Maxeon solar cells and a 21% efficient panel, and moving forward with the C7 Tracker, which could improve the company’s offerings in the utility space.

As the industry’s competition improves, this will continue to be a key differentiator for SunPower. When you start with better panels, and you have the R&D to improve from there, it is very difficult for competitors to catch up.

Foolish bottom line
Solar is exploding right now, and SunPower is leading the way. I don’t think the momentum stops here considering the strong balance sheet, improving income statement, high efficiency, and focus on developing new products.

The article 3 Reasons SunPower Is Leading the Charge in Solar originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of SunPower. Travis Hoium personally owns shares of SunPower and has the following options: Long Jan 2015 $7 Calls on SunPower, Long Jan 2015 $5 Calls on SunPower, and Long Jan 2015 $15 Calls on SunPower. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned.

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