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Sempra Energy (SRE) Arm's Energy Efficiency Program Progresses
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Sempra Energy’s (SRE - Free Report) subsidiary Southern California Gas Co. (SoCalGas) recently revealed that its Energy Efficient New Homes (EENH) Program has got enrollment from more than 13,400 new single-family residential units and multi-family projects. This should aid SoCalGas in achieving its net-zero greenhouse gas (GHG) emission goal by 2045.
Benefits of the EENH Program
SoCalGas’ EENH Program provides energy efficiency rebates to builders of eligible new residential construction projects in the Southern California region. This in turn promotes the construction of energy-efficient homes at a lower cost, thereby resulting in higher levels of efficiency and utility bill savings for the company’s customers.
In 2020, 25% of new single-family residential (SFR) homes within SoCalGas' service territory enrolled in the EENH program. Following the latest announcement, the program is projected to save an estimated 300,000 net therms with over $450 thousand saved in utility bill savings for future homeowners over the next two years. This will reduce emissions by over 1,500 metric tons of carbon dioxide equivalent (CO2e) annually, which is equal to removing over 300 vehicles off the road for one year.
The increase in residential projects enrollment in the EENH program, as stated in the recent announcement, reflects the growing popularity of SoCalGas’ energy efficiency programs. Since, energy efficiency is one of the many initiatives adopted by the entire Utility sector to achieve a decarbonized environment, such successful energy efficiency programs offered by SoCalGas, like EENH, should attract more customers for Sempra Energy, thereby boosting its future top line.
Utilities’ Adoption of Renewable Energy
To mitigate the deadly effects of climate change, in the United States, utilities are increasingly adopting renewable energy sources to produce electricity. Per the latest forecast made by the U.S. Energy Information Administration (EIA), electricity generation from renewable energy sources is expected to rise from 20% in 2021 to 23% in 2022 and 24% in 2023, primarily driven by projected additions to the wind- and solar-energy-generating capacity.
Apart from Sempra Energy, other utilities have also pledged net-zero carbon emissions to achieve a carbon-free environment.
For instance, Duke Energy (DUK - Free Report) aims to reach its target of net-zero carbon emissions from electric generation by 2050. DUK lowered its carbon emissions by more than 40% from 2005 to 2020.
Duke Energy boasts a long-term earnings growth rate of 5.3%. DUK came up with a four-quarter average earnings surprise of 2.29%.
Likewise, American Electric Power’s (AEP - Free Report) intermediate goal is an 80% reduction from 2000 CO2 emission levels from its generating facilities by 2030. The long-term goal is net-zero CO2 emissions from its generating facilities by 2050. Moreover, its 2022-2026 capital investment forecast includes $9.9 billion in a regulated renewables plan.
American Electric boasts a long-term earnings growth rate of 5.7%. AEP came up with a four-quarter average earnings surprise of 1.61%.
Ameren Corporation (AEE - Free Report) targets to expand its renewables portfolio by adding 3,100 megawatts (MWs) of renewable generation by the end of 2030 and a total of 5,400 MWs of renewable generation by 2040. Apart from investing in renewable projects, Ameren is also closing its coal-fired plants to reduce carbon dioxide emissions and promote green energy.
Ameren boasts a long-term earnings growth rate of 7.5%. AEE came up with a four-quarter average earnings surprise of 6.65%.
Image: Bigstock
Sempra Energy (SRE) Arm's Energy Efficiency Program Progresses
Sempra Energy’s (SRE - Free Report) subsidiary Southern California Gas Co. (SoCalGas) recently revealed that its Energy Efficient New Homes (EENH) Program has got enrollment from more than 13,400 new single-family residential units and multi-family projects. This should aid SoCalGas in achieving its net-zero greenhouse gas (GHG) emission goal by 2045.
Benefits of the EENH Program
SoCalGas’ EENH Program provides energy efficiency rebates to builders of eligible new residential construction projects in the Southern California region. This in turn promotes the construction of energy-efficient homes at a lower cost, thereby resulting in higher levels of efficiency and utility bill savings for the company’s customers.
In 2020, 25% of new single-family residential (SFR) homes within SoCalGas' service territory enrolled in the EENH program. Following the latest announcement, the program is projected to save an estimated 300,000 net therms with over $450 thousand saved in utility bill savings for future homeowners over the next two years. This will reduce emissions by over 1,500 metric tons of carbon dioxide equivalent (CO2e) annually, which is equal to removing over 300 vehicles off the road for one year.
The increase in residential projects enrollment in the EENH program, as stated in the recent announcement, reflects the growing popularity of SoCalGas’ energy efficiency programs. Since, energy efficiency is one of the many initiatives adopted by the entire Utility sector to achieve a decarbonized environment, such successful energy efficiency programs offered by SoCalGas, like EENH, should attract more customers for Sempra Energy, thereby boosting its future top line.
Utilities’ Adoption of Renewable Energy
To mitigate the deadly effects of climate change, in the United States, utilities are increasingly adopting renewable energy sources to produce electricity. Per the latest forecast made by the U.S. Energy Information Administration (EIA), electricity generation from renewable energy sources is expected to rise from 20% in 2021 to 23% in 2022 and 24% in 2023, primarily driven by projected additions to the wind- and solar-energy-generating capacity.
Apart from Sempra Energy, other utilities have also pledged net-zero carbon emissions to achieve a carbon-free environment.
For instance, Duke Energy (DUK - Free Report) aims to reach its target of net-zero carbon emissions from electric generation by 2050. DUK lowered its carbon emissions by more than 40% from 2005 to 2020.
Duke Energy boasts a long-term earnings growth rate of 5.3%. DUK came up with a four-quarter average earnings surprise of 2.29%.
Likewise, American Electric Power’s (AEP - Free Report) intermediate goal is an 80% reduction from 2000 CO2 emission levels from its generating facilities by 2030. The long-term goal is net-zero CO2 emissions from its generating facilities by 2050. Moreover, its 2022-2026 capital investment forecast includes $9.9 billion in a regulated renewables plan.
American Electric boasts a long-term earnings growth rate of 5.7%. AEP came up with a four-quarter average earnings surprise of 1.61%.
Ameren Corporation (AEE - Free Report) targets to expand its renewables portfolio by adding 3,100 megawatts (MWs) of renewable generation by the end of 2030 and a total of 5,400 MWs of renewable generation by 2040. Apart from investing in renewable projects, Ameren is also closing its coal-fired plants to reduce carbon dioxide emissions and promote green energy.
Ameren boasts a long-term earnings growth rate of 7.5%. AEE came up with a four-quarter average earnings surprise of 6.65%.
Price Performance & Zacks Rank
Sempra Energy, a Zacks Rank #3 (Hold) company, has gained 13.6% in the past year compared to the industry’s 20.5% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.