Here’s why ASX solar stock MPower Group (ASX:MPR) gained 30% this morning
Nick Sundich, August 10, 2023
It hasn’t been as good a time to be an ASX solar stock as you might imagine. Despite the growth in renewable energy, companies in the renewable energy space have missed out because they tend to be small-cap companies with a more limited market share.
But MPower (ASX:MPR) has gained 30% this morning after making a handsome profit on a solar farm in North Queensland.
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This ASX solar stock made a good return
The Lakeland Solar Project was picked up by MPower barely 12 months ago and it has just been flipped. It consists of a 10.8MWac solar farm and an associated 1.4MWac/5.3MWh lithium-ion battery storage facility.
Thanks to operational efficiencies made at the project, it generated 18GWh of clean energy and $1.7m in revenue during the 12 months of ownership.
MPower has now sold the project for $12.7m, resulting in a $6.1m profit that will be recognised in its FY23 results.
A good time for shareholders
This news has capped off a big few months for the company. It secured a strategic partnership with clean energy infrastructure provider Evergen, secured a $10m project funding facility.
Nonetheless, it is a risky penny stock capped at $7.7m. There are less riskier stocks out there to profit from the growth in renewable energy technologies.
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