Apple Inc. (NASDAQ: AAPL), which invested $850 million during the previous year for the 130-megawatt solar farm close to San Francisco, can start selling solar energy into wholesale markets.
On Thursday, federal energy regulators have given the approval to the Cupertino, California-based tech giant, allowing it to begin selling energy at market rates.
According to the US Federal Energy Regulatory Commission, Apple Energy LLC—the subsidiary of the iPhone maker—is allowed to sell energy, capacity, as well as other services required for the maintenance of reliable power. The federal energy regulators approved the application as it determined that Apple did not increase the risk of being able to unfairly boost the energy prices.
The Cupertino, California-based tech giant owns a 20 megawatt generation capacity in Nevada, 130 megawatts of generation capacity in California, and 50 megawatts in Arizona. The energy production in California, which is sufficient to provide power to thousands of homes, will be derived from the partnership of Apple with First Solar at the California Flats solar project located in the southeast Monterey County.
According to the CEO of Apple Inc Mr. Tim Cook, “We know that climate change is real.”
“Our view is that the time for talk has passed, and the time for action is now. We’ve shown that with what we’ve done,” he further added during a conference in 2015.
The recent ruling from the federal energy regulators will be effective starting Saturday.
In addition, the iPhone maker still has another pending application, involving its aim to sell excess energy produced through solar panels located on the roof of its Cupertino campus that is under construction.
Apple Inc is the latest addition to the list of companies that are pumping in money for renewable energy projects in an attempt to address the global warming issue, as well as to reduce electricity expenses. Microsoft Corp, Google, and Amazon.com are investing in solar farms as well as wind turbines in order to power their operations in a more environmentally friendly way.
Bloomberg analyst Kit Konolige said on Thursday, “When you own power production facilities then you would typically want to have authority to sell power.”
“It is indicative of a number of related trends that are lowering demand for power produced by utilities,” the analysts further stated.
As of 5:54 AM GMT -4 on August 5, the AAPL stock is changing hands at $105.87, up by 0.62 percent or 0.65 points. Currently, its market capitalization stands at 577.63 billion, while its dividend yield posts at around 2.15 percent.