California’s Solar Bump

California Puts Solar on the Roof and Up For Grabs; A mandate may not be the guaranteed boon to established companies investors think.

Liam Denning, May 14, 2018 (Bloomberg News)

“…[The debates have begun about whether the new California law requiring rooftop solar on all new houses] is cost-effective versus other climate-friendly measures…They’re valid debates…Large residential solar companies such as Sunrun Inc. look like obvious winners…[Bloomberg New Energy Finance (BNEF)] estimates the mandate could boost residential solar deployment in California in 2020 by 200 to 300 megawatts, or 23 to 34 percent — on top of a market already growing at more than 9 percent…Builders might partner with established residential solar firms…[or a] homebuyer might pay the construction firm for the house and simultaneously contract with the solar partner…Financing could be done either through existing loan or lease products or, if preferable, rolled into the mortgage…This seems to hold out the prospect of all-in unit costs for residential solar falling dramatically…[because] more than two-thirds of the cost of a typical rooftop system in California relates not to equipment but to such things as marketing, permitting and installation…[But new] value propositions are needed…[because distributed solar power is already] pushing more electrons onto a glutted mid-afternoon market…California’s new mandate tees up a huge experiment in brands and services potentially picking up the slack as residential solar’s commodification accelerates…” click here for more

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