Why SunPower Corporation (SPWR) Could Have a Very Bright Future

3. Leasing model economics
As a consumer, the idea of going green and saving money is a true win-win proposition. That’s why SunPower’s Energy Solutions leasing model is a real game changer. A consumer can have a SunPower system installed at no upfront cost, enjoy 20 years of clean energy, and still save money on the utility bill. As you can see from the sample bill below, the savings can be significant:

Source: SunPower Investor Presentation

What’s really intriguing is that today a customer can save between 10%-15% on their electric bill while going green at the same time. While that shows substantial savings, SunPower Corporation (NASDAQ:SPWR) could widen that gap even further in the future as its works to bring down system costs while further improving efficiency. The company’s goal is to improve efficiency by 10% while decreasing panel costs by 35% by 2015. As it accomplishes these goals, the company could improve its value proposition to its customers even further.

Foolish bottom line
SunPower appears to have a very bright future. With a massive addressable market, a breakthrough product and compelling economics, the sky really is the limit. That being said, solar is a tough industry that has been known to burn its share of investors, so I think I’ll watch this one a little while longer.

The article 3 Reasons Why SunPower Could Have a Very Bright Future originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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