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Finance

Understanding SolarCity’s Business Strategy

The downstream solar (TAN) business is all about capturing market share. Because solar lease contracts and PPAs (power purchase agreements) last typically for 20 years, a company with higher market share in the mature stage will make more money than a company with less market share. Moreover, operating expenses decrease as the company reaches the mature stage, thereby increasing margins.

Continual and consistent business expansion is crucial for downstream solar companies like SolarCity (SCTY), Sunrun (RUN), Vivint Solar (VSLR), Sungevity, and SolarPower (SPWR). SolarCity intends to expand its presence through strategic partnerships with homebuilders and industry leaders. For instance, SolarCity’s agreements with Home Depot (HD), Best Buy (BBY), and Honda have helped it expand its foothold in multiple markets.

View more information: https://marketrealist.com/2016/04/understanding-solarcitys-business-strategy/

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See also  https://marketrealist.com/t/hxscf/

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