Wal-Mart shops at SunPower, BP Solar and SunEdison

SunPower, BP Solar and SunEdison look to be the big winners in an announcement that Wal-Mart (NYSE: WMT) plans to install solar arrays at 22 stores and distribution centers.

After issuing a RFP in late '06, Wal-Mart today announced a major solar power pilot program with PowerLight (owned by SunPower), SunEdison, and BP Solar.

The contracts have been structured as power purchase agreements, which limit Wal-Mart's capex and maintenance exposure.

PV systems are to be installed at locations in California and Hawaii, creating ~20M kWh of electricity per year, making it one of the largest solar power initiatives to date by a non-utility corporation.

This may be only a small portion of Wal-Mart's total solar installations. In a statement today, the company characterized the move as only "part of a pilot project to determine solar power viability for Wal-Mart."

Beneficiaries are likely to include SunPower and JA Solar, which supplies cells to SunPower's PowerLight subsidiary, and Suntech and Evergreen Solar, which have strong relationships with SunEdison.

According to Jeff Osborne of CIBC World Markets, the total project size is on the order of 10 MW, with PowerLight supplying 4.6MW to 7 California locations. SunEdison is to supply to 8 locations in California and Hawaii, while BP is to supply the remaining 7.

"We see Wal-Mart's support of PV power as a big win for the industry and expect it to lead the way for other large companies to announce similar plans. We are very optimistic about the commercial solar market in the U.S., as the national commercial incentive program is better than residential," said Osborne.

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