Generac Wins $200M Grant From DOE for Solar Program

Generac Holdings Inc. GNRC recently announced that it has been granted a hefty sum of up to $200 million, spanning over five years, by the U.S. Department of Energy ("DOE"). This grant belongs to the $1 billion Puerto Rico Energy Resilience Fund (PR-ERF).

Through the PR-ERF's Programa Acceso Solar (Solar Access Program), Generac will fuel the installation of residential solar and battery storage systems for underdeveloped Puerto Rican households, with installations commencing in August 2024.

By collaborating with its local project affiliates in Puerto Rico, the company aims to elevate the conditions in low-income areas suffering from frequent and extended power disruptions by supplying clean and resilient energy solutions. The program will also empower households with residents who have energy-dependent disabilities.

Furthermore, the initiative is likely to generate potential job opportunities in the clean energy field and simultaneously foster Puerto Rico's vision of achieving a 100% renewable energy target by 2050.

To support the program, Generac will tie up with multiple companies like PathStone. It is a nonprofit organization that has been rendering humanitarian services and developing the workforce in Puerto Rico for more than two decades now. Alongside the Interstate Renewable Energy Council, PathStone will coordinate additional local community efforts to serve as liaisons between Solar Ambassadors, installers and eligible recipients.

FR-BLDM, a leading local contractor with deep expertise in government program management, will lead installations in association with other local, small, family-owned businesses in Puerto Rico. Juapi Energy, a PWRcell installer that serves as a Generac Service Dealer in Puerto Rico, will provide service support to residents and execute installations.

Also, Palmetto, a renowned climate technology company expediting the adoption of clean energy, will extend three of its commercial software applications— a fintech platform, installation partner portal and asset management services — to empower homeowners' shift to solar and storage in Puerto Rico.

These partnerships will not only enhance the program's efficiency but also develop workforce and training sessions to provide jobs for residents in underprivileged communities across Puerto Rico.

Waukesha, WI-based Generac is one of the leading manufacturers of backup and prime power generation systems for residential and business applications, as well as energy monitoring and management devices and services, along with other power products.

The company is continuously working to solidify its foothold in the Power Generation industry. Recently, it expanded its energy management solutions portfolio with the addition of a cutting-edge electric vehicle charger. The level 2 charger (available in two formats, the 40A Plus and 48A Plus models) is built with Wi-Fi and Bluetooth connectivity for an enhanced user experience, having charging speeds eight times faster than an L1 charger.

At present, GNRC sports a Zacks Rank #1 (Strong Buy). The stock has gained 7.6% in the past year compared with the industry's growth of 1.8%.

Image Source: Zacks Investment Research

Stocks to Consider

NVIDIA Corporation, sporting a Zacks Rank #1 at present, delivered a trailing four-quarter earnings surprise of 18.43%, on average. In the last reported quarter, it delivered an earnings surprise of 11.48%.

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company's focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.

Motorola Solutions Inc. MSI provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Motorola carries a Zacks Rank #2 (Buy) at present.

It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.

Silicon Motion Technology Corporation SIMO, carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.

SIMO is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers and other customers.

To read this article on Zacks.com click here.