With the recent news that Kosmos will be buying into SolarCity, and the acquisition of SolarCity’s electric vehicle division, there’s a lot of buzz surrounding what the company’s going to look like going forward.
Kosmos Energy has been on the lookout for a big player in renewable energy for some time, and it’s no surprise that it’s now looking at SolarCity.
According to a recent article in Bloomberg, “Kosmo Energy is in advanced talks with SolarCity to buy SolarCity Corp. for about $16.7 billion, the company said Tuesday.
The deal is expected to close in the second half of 2019.”
Bloomberg writes that the deal will include SolarCity owning “a majority stake in a solar project in Arizona that could generate about 20 percent of the companys total output by 2020, Bloomberg said.
“Kosms deal with Solar City will help us continue to deliver solar, wind and other clean energy solutions that are safe and cost effective.””
Bloomberg says that the new ownership group will focus on “a variety of technologies” including “storage and electric vehicle charging infrastructure” that can be used by “energy producers, consumers and businesses.” “
Kosms deal with Solar City will help us continue to deliver solar, wind and other clean energy solutions that are safe and cost effective.”
Bloomberg says that the new ownership group will focus on “a variety of technologies” including “storage and electric vehicle charging infrastructure” that can be used by “energy producers, consumers and businesses.”
“We believe this transaction will further accelerate SolarCity as a leader in solar and wind power,” SolarCity Chairman Lyndon Rive said in a press release.
“It will allow SolarCity the opportunity to become a global leader in renewables.”
SolarCity is expected, according to the company, to continue its expansion efforts in 2018 with the purchase of the energy storage company Advanced Energy Storage Solutions, Inc., which is expected “to create a new, differentiated company focused on energy storage and renewable energy.”
The news comes as SolarCity has been hit with a wave of controversy recently, with the company recently announcing that it had purchased its shares in General Electric Co. for $19.3 billion.
SolarCity said the deal was worth $9.6 billion, which is less than the price of the stock.
On Tuesday, Bloomberg reported that Kosms deal could create a huge financial windfall for SolarCity if it goes through.
The company said that the purchase would allow Kosmos “to invest in its core business and drive growth” through the sale of its energy storage business.
The company’s stock has risen nearly 50 percent since the deal went public, rising from $4.30 on Jan. 31 to $11.00 on Tuesday.
Bloomberg reports that “a person familiar with the matter” said the new deal will create an “economic windfall” for SolarChasers investors.
While the purchase will create a lot more cash for Solar City, Bloomberg writes that this could also result in a “loss for the stock.”
According the report, The deal could lead Kosmos’ future to be “more focused on long-term value and sustainable growth than it is on short-term gains.”
For now, Solar City stock is up more than 70 percent since Bloomberg first reported the news.
As part of the deal, SolarChaser will receive $20 million in cash in the form of SolarEdge cash, according Bloomberg.
SolarEdge is SolarCitys most important energy storage product.
For years, SolarEdge has been one of the most talked about energy storage technologies in the world.
In 2017, SolarPower bought SolarEdge and it is now a subsidiary of SolarReserve, which will continue to produce SolarEdge.
Currently, SolarReserves shares are up more like 7 percent since SolarPower’s acquisition.
A solar energy storage system, also known as a PV module, is a battery with the ability to capture and store energy.
With SolarReservises purchase, SolarTech is now in a position to become one of two major players in the solar energy industry.
Although SolarTech will still produce the SolarEdge energy storage systems, Solar Tech will be able to continue to sell its solar energy modules directly to customers.
SolarTech will be using the $16 billion in cash from the acquisition to acquire Advanced Energy Systems, which was spun off from SolarReserving.
Advanced Energy Systems was spun out of SolarTech in 2015 and has since gone through several changes.
Prior to the spinoff, Advanced Energy Services was a solar power installation company that had been producing solar energy for more than 15 years.
At one point, Advanced Techs revenue totaled about $30 million per year, but in the early years, it made money on solar power installations, according the SolarTech website.
However, as the company has changed and grew, it has increasingly relied on the sale and leasing