2023-11-03 16:51:35
After the wind industry, now the solar industry is facing financial difficulties in the US, in a blow to renewable energy
U.S. home solar companies cut their outlooks this week amid a series of challenges that are dragging the sector down. Investors noticed.
Sunrun Inc., SunPower Corp. and SolarEdge Technologies Inc. reported weaker-than-expected third-quarter sales. The main culprits: higher interest rates, an oversupply of equipment and drastically reduced state incentives in California – the most important domestic market.
“This has been a volatile time,” Sunrun CEO Mary Powell said of the results on a conference call.
The comments came shortly after Sunrun revealed that a drop in its share price led the company to charge $1.2 billion to write down the value of its 2020 purchase of rival Vivint Solar.
It’s surprising turbulence for a renewable sector that has generated a wave of enthusiasm for sustainable investing since the election of President Joe Biden. But economic headwinds and declining California roof subsidies have recently overwhelmed the generous incentives provided in the landmark climate law that Biden signed just 14 months ago.
The sell-off is not unique to Sunrun, the largest rooftop solar company in the US. The Invesco Solar ETF, which tracks shares in the sector, has fallen 41% this year.
In response to market turmoil, home solar companies say they are cutting costs, raising prices and selling battery systems at higher margins.
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