The world is fast shifting to alternative energy and this is spurring demand for solar panels.
E-commerce giant Amazon.com Inc. AMZN is gearing up for its next project associated with renewable energy initiatives. This time, the firm will harness solar energy by installing solar panels on the roof of its fulfillment facilities across the world.
Coming to the price performance, over the past one year, shares of Amazon outperformed the Zacks categorized Electronic Commerce industry. While the industry gained 39.53%, the stock returned 45.91%.
As part of its commitment to advance green power, Amazon has plans of deploying large-scale solar systems on rooftops of more than 15 fulfillment and sortation centers in the U.S. this year. By 2020, around 50 data centers are expected to use solar energy to meet their power needs.
Amazon said that these solar panels could generate up to 80% of the annual energy requirements of a fulfillment center depending on the project, time of year and other factors. The company already has a network of wind and solar farms in Indiana, North Carolina, Ohio and Virginia. Its largest wind farm is in Texas.
Amazon’s senior vice president of Worldwide Operations, Dave Clark, said “As our fulfillment network continues to expand, we want to help generate more renewable energy at both existing and new facilities around the world in partnership with community and business leaders."
Focus on Carbon Neutrality
This initiative by Amazon is the latest in a string of clean energy investments made by U.S. technology giants in recent months. For quite some time, Amazon has been moving away from fossil fuels and focusing more on clean energy. It aims at reducing its carbon footprint and using more renewable energy to power its huge data centers. Moreover, the company can generate healthy returns from these solar and wind investments as there are many associated tax incentives.
Infact many corporate behemoths including Google GOOGL, Facebook FB and Apple AAPL are progressively moving toward alternative energy sources to lower their overall carbon emissions and cut their energy bills substantially.
Also, several countries are increasingly relying on solar power to generate clean energy. Stringent environmental legislations on greenhouse gas emissions have also proved to be a boon for the solar power sector. Moreover, despite high initial investments, low operational costs and no fuel costs make these solar investments attractive.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. Price and Consensus | Amazon.com, Inc. Quote
At present, Amazon has a Zacks Rank #5 (Strong Sell).
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