SunPower Corporation (NASDAQ: SPWR) and First Solar, Inc. (NASDAQ: FSLR) posted throw-away Q1 earnings last week as the two companies prepare for a YieldCo. Following Q1 earnings last week, First Solar fell nearly 9 percent, while SunPower dipped 4 percent.

The YieldCo, called 8point3 Energy Partners, would hold income-generating assets, like long-term contracts, separate from the parent companies. Spinning off these assets into a new company allows SunPower and First Solar to provide a security for the market that generates steady, long-term dividends.

For First Solar and SunPower, 8point3 Energy Partners provides the companies with an opportunity to raise funds to fuel new projects without diluting current shareholders. Previously, Sunedison Inc (NYSE: SUNE) opened a YieldCo called TerraForm Power Inc (NASDAQ: TERP). Since IPO'ing last year, TerraForm gained 21.5 percent and currently offers a yield of 2.7 percent.

This year, First Solar has performed well, gaining 28 percent. SunPower has gained 26 percent. Over the prior 52 weeks, however, the stocks have not done well. First Solar has declined 16 percent and SunPower dipped 4 percent.

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