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NextEra Energy-JinkoSolar Ink Deal to Provide Solar Energy

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NextEra Energy, Inc. (NEE - Free Report) has announced an agreement to purchase solar panel from JinkoSolar Holding Co., Ltd. (JKS - Free Report) . Over next four years, JinkoSolar will supply approximately 2,750 megawatts (MW) of high-efficiency solar modules (nearly 7 million solar panels) to NextEra Energy. Productions of the solar panels are expected to commence in the second half of 2018.

JinkoSolar will open its first factory in the United States in Jacksonville, FL. The company will trade through the Port of Jacksonville. The company will construct 400 MW of solar modules annually, which is nearly 1 million solar panels. JinkoSolar will utilize its technology to produce reliable and cost effective solar panels will help NextEra Energy to work effectively on its projects.

Focus on Clean Power Plan

The new government tried to boost coal industry, it didn’t work out according to plans. According to a U.S. Energy Information Administration (“EIA”), the overall emission of carbon dioxide fell 1.7% in 2016 and 0.8% in 2017 due to initiatives undertaken by the utilities. The agreement with JinkoSolar will boost NextEra Energy’s initiatives to provide cleaner energy.

Over the last few years, the U.S. renewable energy industry is experiencing remarkable growth. Per a report by the Scientific American, the EIA estimates wind and solar energy to produce 10% of U.S. electricity by 2020.

Price Performance

Shares of NextEra Energy have gained 27.4% in the last 12 months, against the Zacks Utility Electric-power industry’s decline of 2.2% in the last twelve months.



 

Zacks Rank & Key Picks

NextEra Energy carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the same industry are Energias de Portugal (EDPFY - Free Report) , CenterPoint Energy, Inc. (CNP - Free Report) . These stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Energias de Portugal’s expected EPS growth for next 5 years is 1.5%. The Zacks Consensus Estimate for 2018 moved up 2.81% in the last 60 days.

CenterPoint Energy’s expected EPS growth for next 5 years is 5.88%. The Zacks Consensus Estimate for 2018 moved up 5.44% in the last 60 days.

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