SunPower (NASDAQ:SPWR) Soars on Buffett Deal
Modern Energy Roundup - January 3, 2013
It was announced yesterday that Warren Buffett's Berkshire Hathaway bought two solar projects from SunPower Corporation (NASDAQ:SPWR) in a deal said to be worth about $2.5 billion.
This is great news for this particular domestic solar company. As CEO Tom Werner noted, the stamp of approval from a Buffett utility combined with expected cash flow from the projects will make SunPower more bankable and more credit worthy.
Of course SunPower continues to deal with very tight margins in a very competitive space. And although the Buffett deal is a feather in its cap, SunPower is still a bit risky for me. That being said, I wish nothing but success for SunPower. At the time of this writing, SPWR is up about 34%.
We recently learned that the state of Hawaii is about to see a 50 percent reduction in the state's solar tax credit.
Although I don't tend to be a fan of subsidies, in Hawaii, this is really a matter of economic security.
Bottom line: With nearly all of Hawaii's power coming from diesel generators, this is just an accident waiting to happen. And if you destroy the beaches, you destroy the economy. It's that simple.
Hawaii is a treasure among treasures, and lawmakers should be doing everything possible to rapidly decrease the island's reliance on imported oil. The climate is absolutely perfect for solar, wind and geothermal, as none of this needs to be shipped in. The islands are blessed with an abundance of these resources on a daily basis.
As a result of severe flooding during Superstorm Sandy, high-end extended range electric car manufacturer Fisker Automotive lost 340 vehicles, estimated to be worth about $33 million.
The company followed up with its insurer, but word is, that insurer, XL Insurance, has denied Fisker's claim.
This is just one more headache in a long line of headaches for the automaker.
Fisker is now suing XL over the claim.
I'm not sure how this will all pan out, but certainly $33 million worth of damage to a startup electric car maker is nothing to sneeze at. You can read more here.