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SunEdison’s Business Model and How It Works

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Oct. 9 2017, Published 12:45 p.m. ET

Revenue generation model

SunEdison (SUNEQ), a solar panel manufacturing business, has the following three operating segments:

  1. Renewable Energy Development
  2. TerraForm Power (TERP)
  3. TerraForm Global (GLBL)
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Renewable Energy Development segment

The Renewable Energy Development segment provides integrated renewable energy (PBW) services that include design, installation, and overseeing operations of clean energy projects. It also includes the financing and maintenance of these projects. Since filing for bankruptcy, SunEdison has struggled to file financials such as a 10-K or 10-Q on time. So the operations of the solar energy part of the business aren’t clear.

TerraForm Power

TerraForm Power (TERP) owns and operates clean energy producing assets. The yieldco sells electricity to utilities, commercial, and residential customers in the United States, Canada, Chile, and the United Kingdom.

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TerraForm Global

TerraForm Global (GLBL) owns and operates clean energy generation assets in emerging markets. It sells electricity to utilities and commercial customers based in Asia, the Middle East, Latin America, and Africa. Terraform Power and TerraForm Global are both SunEdison’s yieldcos. In the next part, we’ll see what a yieldco is.

Key customers and the global market 

SunEdison’s customer base is very diverse when it comes to global reach and user types. Key solar energy customers in the United States are mostly utilities, retail chains, real estate property management firms, and federal, state, and municipal governments.

The company has a presence in Europe, Latin America, the Middle East, and Asia, which includes Brazil, Chile, Italy, Turkey, China, and Japan. Current customers of the semiconductor materials business include International Business Machines (IBM) and Intel (INTC).

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