SolarCity Corp (SCTY) Gains 26% Share In US Residential Solar Market

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SolarCity Corp (NASDAQ:SCTY) has increased its market share in the U.S. residential solar photovoltaic (PV) market to 26%, according to the latest data by GTM Research. It’s more than three times the market share of its nearest rival Vivint Solar Inc. SolarCity had just 16% market share in 2012.

SolarCity set for another year of robust growth

GTM Research Senior VP Shayle Kann said that the company has been steadily growing its market share. It has also made some strategic moves such as the acquisitions of Paramount Solar and Zep Solar. Kann says the company’s 2014 guidance indicates another year of robust growth. Notably, the San Mateo-based company forecasts panel installation of 475-525MW this year.

GTM Research said that the top ten installers account for 52% of the market share. Verengo Solar, which was the biggest residential solar company in 2012, saw its market share decline to just 5% in 2013. It’s now the third largest company based on market share. In total, 792MW of residential panels were installed during 2013. That means, SolarCity Corp (NASDAQ:SCTY) alone installed 206MW. However, the residential solar panel market is much smaller than the utility-scale PV market in the U.S. In 2013, the residential sector made up only 16% of the country’s total newly installed capacity.

SolarCity is an enticing buy at this point

SolarCity Corp (NASDAQ:SCTY) said costs per watt declined 30% in 2013. The falling spot module pricing should also help the company. Shares of the Elon Musk-backed company have plunged from $86.14 on February 27 to around $63.84 today. Raymond James analyst Pavel Molchanov says the decline is a lucrative opportunity to take a new position in the stock. The stock has an enticing near-term catalyst, and its long-term prospects remain strong.

SolarCity Corp (NASDAQ:SCTY) offered $54.4 million in notes in November 2013. With a lower than expected coupon of 4.8%, the securitization impressed the markets. Just the announcement of the securitization had pushed the stock up by 11%. Raymond James says the company will offer at least $100 million in notes this month. With a bigger deal size, the coupon should go lower.  Analysts see it as a lucrative catalyst.

SolarCity Corp (NASDAQ:SCTY) shares were up 1.66% to $63.66 at 12:02 PM EDT.

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