Plug Power Inc (NASDAQ:PLUG) has joined the alternative energy financing boom, a strategy pioneered by SolarCity Corp (NASDAQ:SCTY). The fuel cell company announced Tuesday that it has signed a deal with M&T Bank to offer financing packages to first-time buyers. The move will help company boost its revenue, said CEO Andy Marsh.
Plug Power now offers all-in-one package
The deal will help the company ease customers’ transition from battery and diesel-powered equipment to hydrogen fuel cell-powered machines. The Latham, New York-based company will offer financing for refueling stations, fuel cells and service agreements in an all-in-one package. The package will be marketed to existing and potential customers under the name GenKey.
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Any Marsh said many customers had approached him seeking financing options. Even Fortune 500 companies were interested in using financing options as they want to balance operating expenses and capital. He said the new financing service will help Plug Power surpass $75 million annual revenue in 2014. Analysts polled by Thomson Reuters expect the company to report $75.9 million revenue in Fy2014, up from $26.6 million last year.
Plug Power forecasts above consensus revenue in 2015
Providing financing options is a popular tool among alternative energy companies to boost demand. Many solar installers including SunPower Corporation (NASDAQ:SPWR) and SunEdison Inc (NYSE:SUNE) offer financing. Cowen & Company analyst Jeffrey Osborne said financing packages will help Plug Power’s clients who can’t afford heavy upfront investment, but are keen to capture the savings.
What’s more, Plug Power CEO Andy Marsh told Albany Business Review that the company is on its way to beat the FY2015 Wall Street revenue guidance. He expects FY2015 revenue to come in at $130 million, above the consensus estimate of $126.37 million. Short sellers seem to be avoiding the stock amid strong growth prospects. According to Nasdaq data, short interest in Plug Power fell 5.9% between August 15 and August 29.
Plug Power shares rose more than 9% on Tuesday, but were down 2.18% to $4.48 at 2:58 PM EDT on Wednesday.