Can PPL's Solar Share Program Drive Both Growth & Customer Loyalty?

PPL Corporation PPL gains from the Solar Share program by increasing grid reliability and customer satisfaction through its subsidiaries Kentucky Utilities ("KU") and Louisville Gas & Electric Company ("LG&E"). In line with PPL's broader plan to achieve net-zero carbon emissions by 2050 and cut emissions by 70% within 2035 and 80% within 2040 (from 2010 levels), the Solar Share program serves as an excellent example of the company's clean energy initiatives and reaffirms its efforts to decarbonize.

Customers, including individuals and businesses, can sign up for local solar energy subscriptions through the program and obtain bill credits without having to deal with the difficulty of setting up their own solar systems. This customer-focused product can increase customer satisfaction and loyalty by providing a practical and affordable option for customers to support renewable energy.

By providing such initiatives, PPL strengthens its reputation and attracts environmentally conscious consumers. The Solar Share program is a voluntary program that allows customers to subscribe capacity in the Solar Share facility. It helps LG&E and KU establish a regular revenue stream because it is subscription-based, which increases PPL's top line.

To support a Solar Share program, LG&E and KU were given permission to build a 4 megawatt (MW) Solar Share plant. After the subscription window ends, construction starts in 500-kilowatt (kW) phases. As of Dec. 31, 2022, five 500-kW phases of construction were finished. As of Dec. 31, 2024, LG&E and KU were still promoting the initiative and accepting subscriptions for the sixth 500-kW phase.

Utilities Benefit From Solar Share Programs

Utilities are leveraging solar share programs to generate new and recurring revenues while reducing costs through improved load management. 

NextEra Energy's NEE unit, Florida Power & Light Company’s (“FPL”) SolarTogether program, enables customers to participate in large-scale solar energy without installing panels on their own property. FPL has approval to expand the program by 1,788 MW between 2022 and 2025, bringing the program’s total solar capacity to 3,278 MW.

Duke Energy DUK had 10 new solar facilities totaling 749 MW (2024-end) under its voluntary solar program in Florida, where customers pay per-kW subscription fees and receive bill credits to support cost-effective solar growth.

PPL’s Earnings Estimates

The Zacks Consensus Estimate for 2025 and 2026 EPS indicates an increase of 7.69% and 8.42%, respectively, year over year.

PPL Stock Trading at a Premium

PPL is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 18.56X compared with the industry average of 14.3X.

PPL Stock Price Performance

In the past year, the company’s shares have risen 10.9% compared with the industry’s 6.3% growth.

PPL’s Zacks Rank

PPL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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This article originally published on Zacks Investment Research (zacks.com).

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