The formation of a yieldco, which the two companies plan to spin off via an IPO in the future, could indicate the health of the solar energy industry, which has suffered in recent months as oil and natural gas prices have plunged. Multiple solar energy stocks, including Canadian Solar, moved higher on Tuesday in the wake of the announcement. Exclusive Report: Jim Cramer's Best Stocks for 2015 First Solar and SunPower had separately made statements in the past about potentially forming yieldcos. First Solar CEO Jim Hughes said in November that the company was not ready to "pursue a listed yield vehicle" at that time. Rival company SunEdison ( SUNE ) spun off its own yieldco, TerraForm Power ( TERP ), which had healthy demand when it went public in July.