American Electric Power Company Inc (AEP), Duke Energy Corp (DUK), NextEra Energy, Inc. (NEE): Utility Companies Going Solar

However, in 2009, Duke Energy Corp (NYSE:DUK) began building and operating solar projects for commercial business customers in the U.S. Now, through its “Duke Energy Renewables” unit, the company owns 11 large scale “solar farms” in five states. Their goal is to provide solar energy solutions tailored for other utility companies, municipalities and large business customers. This unit is also developing commercial wind energy projects aimed at reducing costs and thereby rates for its customers.

NextEra: Solar power for the ethical investor

NextEra Energy, Inc. (NYSE:NEE) owns Florida’s largest utility. The outfit has had a head start against Duke Energy Corp (NYSE:DUK) and American in the solar energy sector. In fact, NextEra Energy, Inc. (NYSE:NEE) has a separate unit dedicated to developing large wind and solar farms.

The utility’s share price is currently hovering at about $78, a bit lower than the 52 week high of $82.65. But its share price is up by about 15% this year. Some observers argue that there is room for growth in the long term because NextEra Energy, Inc. (NYSE:NEE) is already a leader in using sustainable energy sources.

Finally, the company has been previously rated as one of the best socially responsible energy companies by Forbes Magazine (2011). This is because outfit is the largest generator of renewable energy from wind and solar polar in North America. In sum, NextEra Energy, Inc. (NYSE:NEE) is an attractive investment not only because of potential earnings growth, but also a good play for investors focused on ethical investing.

The Bottom Line

The so-called “all of the above” approach to meet the needs of energy providers and customers is the wave of the future. And investors with a long term view can ride the wave by investing in these and other utility and energy companies that are implementing this energy strategy. To borrow a line from a Beatle’s chestnut, here comes the sun.

The article Utility Companies Going Solar originally appeared on Fool.com and is written by Kyle Colona.

The Motley Fool has no position in any of the stocks mentioned. Kyle is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.