Solar power is undergoing significant growth, expected to double every two to three years, driven by an unprecedented surge in demand for new electricity generation, as stated by Nextracker’s CEO, Dan Shugar. Nextracker, a company specializing in systems that enable solar panels to track the sun’s movement, reported a substantial order backlog exceeding $3 billion. Shugar expressed confidence in the unstoppable nature of solar energy, emphasizing its favorable economics for large-scale utility projects both in the U.S. and internationally. Following its latest quarterly report, Nextracker’s stock surged by nearly 25%, surpassing Wall Street’s earnings expectations. Despite challenges faced by the broader solar industry, Nextracker has outperformed, experiencing a 24% increase in stock value this year. The company’s fiscal third-quarter revenue demonstrated a 38% year-over-year growth to $710 million, primarily fueled by escalating demand from major utility-scale customers. Shugar underscored the necessity for nearly 300 gigawatts of new power plants within the next five years and 500 gigawatts over the next decade to meet the growing electricity demand. With solar being faster and more cost-effective than conventional energy sources, it is projected to witness a 26% compound annual growth over the next five years, eventually becoming the predominant source of U.S. electricity generation in a decade. Nextracker has revised its revenue forecast for fiscal 2024, now ranging between $2.43 billion and $2.48 billion, attributing the increase to robust demand. The company has also adjusted its net income guidance for the year, including benefits from tax credits under the Inflation Reduction Act. However, potential challenges such as geopolitical risks and uncertainties related to the 2024 presidential election may impact the solar industry.
