The ‘Power’ of Commercial Solar & How XsunX, Inc Will Capitalize

 
NEW YORK - Dec. 3, 2014 - PRLog -- The increasing cost of energy has pushed many commercial building owners to look for alternative sources for power. Throughout the state of California for example, solar system installers say that they have had a “backlog” of work orders recently, according to The Sacremento Bee (http://www.sacbee.com/news/business/article3608349.html).  With states like CA having electricity rates that are 40% above the U.S. average, and residential price increases quadrupling (according to a recent report (http://www.forbes.com/sites/judeclemente/2014/10/27/hey-epa-the-california-model-doesnt-work-and-well-need-more-electricity/) from Forbes.com) the obvious need for alternative energy comes to light. Moreover, Forbes notes that at 100 TWh/year, California imports more electricity than Massachusetts and New Jersey generate combined.  So the opportunity to capitalize on this shortcoming in California and other states’ traditional power production gains more substance as facts like these come to the surface.

One major driver to lead the solar industry boom will be commercial scale installations according to The US Energy Information Administration (EIA). In a recent analysis (http://www.eia.gov/forecasts/steo/archives/aug14.pdf) of the market, the EIA expects that utility-scale solar capacity will increase by 96% between the end of 2013 and the end of 2015; about two-thirds of this new capacity is being built in California.  As far as investment opportunities go, investors are looking toward utility scale installers to deliver potential profit in today's market.

Commercial solar installer XsunX, Inc. (XSNX) has actually identified a niche where it can efficiently generate revenue from projects that the much larger solar companies simply pass on.  The trade-off for these much larger solar installers is based on the overall cost vs profit margin; simply put, smaller projects do not make financial sense based on the massive amounts of overhead that these corporations have on a day-to-day basis. XSNX recently announced (http://finance.yahoo.com/news/xsunx-reports-increased-rev...) some great results from the quarter. Revenues continued to improve growing by 60% in its third period while gross margins remained on target in excess of 30%. Now this time last year, the company was still in its development stages but since focusing on commercial solar sales & installation, XSNX is well on its way to having a milestone year.

In fact, XSNX announced that it had reached over 146kW in solar system delivery for the year so far and the company's addition of new commercial power management (CPM)  technologies to its solar power system designs was the first of two key system upgrades the company is planning. According to XSNX, the next goal is to integrate on-site power storage to decrease building dependency from utilities for incidental building load demands. "Our goal is to provide clients with an economically balanced three part solution delivering on-site power production to off-set 100% of their kilowatt hour needs, the ability to manage every aspect of how they use power to eliminate waste, and the delivery of on-demand stored power to offset costly incidental power hogging equipment loads," stated Mr. Djokovich.

Though XSNX has seen a decline in price over the past few months, it is the most recent 2 weeks that has traders paying more attention to this stock as well as the solar market.  Lately the market has been consolidating as much larger companies such as SunEdison and FirstSolar have pulled back in price.  The current climate has solar investors searching for a bottom and looking for lower entry points.

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