SunPower Corporation (NASDAQ:SPWR) has helped make the government of the City of Las Vegas the first city administration in the country to run 100% on renewable energy. That follows the turning on of the solar power project in the city dubbed Boulder 1, and with that Las Vegas has become a beacon of energy sustainability.
Making a friend out of Nevada’s scorching sun
What SunPower has done in Las Vegas is that it has enabled the city tap into the sun in Nevada to produce cheap solar energy. In Nevada, solar energy costs 4.6 cents a kilowatt/hour, not only making it one of the cheapest in the country but also nearly as price competitive as fossil fuel.
But the entry of SunPower into Nevada’s energy market appears to be turning tables on the state’s energy utility NV Energy, a subsidiary of Berkshire Hathaway (NYSE:BRK-A).
As the costs of solar panels fall and companies like SunPower showing how Nevada’s sun can be tapped to generate cheap solar electricity, pressure has piled on NV Energy to increase its renewable energy capacity. NV Energy has been investing more in solar energy after the Las Vegas city officials threatened to drop its service.
Las Vegas Casino operators Wynn Resorts (NASDAQ:WYNN) and MGM Resorts (NYSE:MGM) also agreed to pay a total of $103 million to allow them leave the purview of NV Energy. While MGM Resorts is investing in solar power and will buy its energy from solar developers, Wynn Resorts is playing its cards close to its chest, although it appears headed the renewable energy way.
By converting city buildings to 100% renewable energy, Las Vegas is hoping to save $5 million annually on electricity costs.
Efficiency drive at SunPower
Meanwhile, SunPower is pushing toward greater efficiency as the company plans to cut 25% of its workforce. That is in addition to a 15% headcount reduction announced earlier this year. The company has been rattled by falling prices of solar panels.
SunPower stock declined 2.7% to close at $6.84 on Friday, and the stock has declined more than 77% since the beginning of the year.