In 2010, solar stocks were among the top picks. However, overcapacity led to declining margins, which eventually led to a sharp pullback in the sector. The sector continues to face challenges but some big names are now betting. In 2014, Warren Buffett invested in the solar energy market and is bullish on the future of clean energy, which includes solar. And now technology giant Apple Inc. (NASDAQ: AAPL) is entering the clean energy market.
According to an article published in The Verge, Apple (NASDAQ: AAPL) has created a subsidiary that will focus on selling excess electricity generated by its solar projects. The company has hundreds of megawatts of solar projects. The subsidiary will be called Apple Energy LLC. The Cupertino, California-based company has already filed a request with the Federal Energy Regulatory Commission to sell electricity on the wholesale market.
Apple seeks to generate 521 megawatts of energy through solar projects across the globe. The company has also invested in other forms of clean energy, including hydroelectric, biogas and geothermal power. The energy is being used to power the company’s data centers. By selling excess, Apple will be in a position to recover some its costs, according to the report from The Verge.
Apple stock was trading toward the close Friday at $98.90 U.S., or 75 cents below Thursday's close, within a 52-week trading range of $89.47 to $132.97 U.S.
