ClearVue Technologies (ASX:CPV): About to make big bucks from solar generating glass

ClearVue Technologies (ASX:CPV) may be one of the best ways for investors to gain exposure to the decarbonisation thematic. This company may not immediately strike out as an obvious candidate in the way that lithium or electric vehicle stocks might, although the more than tripling of this company’s shares in the last 12 months would suggest more investors are paying attention.

ClearVue Technologies (ASX:CPV) share price chart, log scale (Source: TradingView)

Introduction to ClearVue Technologies

ClearVue is a manufacturer of solar-powered glass windows. Its core product is ClearVuePV that is a frame of glass with a layer of micro and nano-particles that reflect the sun’s rays towards embedded solar cells. The solar rays are converted to energy and the system allows up to 70% of the light to pass through, without obstructing the view. ClearVue can operate regardless of climatic conditions and it can do so autonomously.

Since commencing development in 2011, the company has increased the amount of electrical output from the glass, all while shrinking the unit. The latest generation can produce up to 33W peak of electric output per square metre of glass, even in spite of being 48.5% thinner and 40% lighter than the previous generation.

The company is able to manufacture with a low-capital intensity and has a highly scalable licensing model, with potential for multiple revenue sources (including, but not limited to, licensing fees and royalties on sales).

Below is a prototype of what ClearVue’s technology could look like on a 40-storey building. This research was conducted by independent Canadian consultancy Footprint to produce building energy modelling on a high-rise building. It showed sufficient solar could be generated on-site to meet between 50-100% (or more) of the building’s energy demand, subject to the project’s location and site shading consideration.

Source: Company

Substantial progress has been made in the last 18 months

Since early 2023, ClearVue has made substantial progress with its technology. It has demonstrated the commercial potential of its technology and obtained its first distribution agreements as well as commercial orders. Several necessary certifications have been obtained too, ensuring compliance with international building standards and regulations, with several more pending.

The company is eyeing off the US market, which is a substantial opportunity for the company. This is not just because of the size of the market, but because the company’s products could gain from multiple federal tax incentives under the US Inflation Reduction Act, specifically the Investment Tax Credit (ITC) and Energy Efficient Commercial Buildings Deduction (179D). These could potentially cover up to 60% of the cost of CPV products to be deployed into a project, and would make the product favourable to qualified sales leads.

Considerable upside potential exists

Looking more broadly, ClearVue is facing a global market opportunity that was US$23.7bn last year and is expected to grow at a CAGR of 21% to US$89.9bn by 2030 – namely, the Building-Integrated Photovoltaic (BIPV) Market. This growth is expected to be driven be growing demand for renewable energy, energy security awareness, favourable government regulations and global commitments to reduce greenhouse gas emissions.

Our friends at Pitt Street Research have covered the company since initiating coverage in February 2024, and published an update note earlier this week. Pitt Street has valued ClearVue at $1.16 per share in a base case scenario and $1.47 in an optimistic scenario, using a blended DCF-Relative valuation. These figures represent upside of 97% and 149% to the share price as at July 2, 2024.

Over the next 12 months, we believe there is more upside potential to be realised as the company generates revenues from its products and comprehensive business pipeline.

The report from Pitt Street Research is an issuer-sponsored report.

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