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California’s photo voltaic proposal may reduce residential market in half – WoodMac (NYSEARCA:TAN)

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California’s residential photo voltaic market could be cut in half by 2024 if state regulators proceed with a proposal that will reduce incentives and add charges for rooftop methods, in line with a new analysis from Wood Mackenzie.

The proposed modifications to California’s web power metering tariffs, released last month, would greater than double the payback intervals for house photo voltaic to greater than 10 years, which the Wooden Mackenzie report says would make residential clients much less prone to spend money on photo voltaic methods and installers much less motivated to promote them.

“Our evaluation for the 2 largest utilities, PG&E (NYSE:PCG) and Southern California Edison (NYSE:EIX), reveals payback intervals for typical residential photo voltaic tasks constructed this 12 months will enhance from 5-6 years underneath present web metering to 14-15 years, relying on the utility,” report co-author Bryan White mentioned.

Photo voltaic advocates have held rallies and launched a brand new advert marketing campaign to oppose the proposed reforms, whereas California’s prime investor-owned utilities together with PG&E and SoCal Edison have been lobbying in assist of the modifications.

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As photo voltaic shares have been burned by a variety of issues together with California’s potential subsidy reduce for householders’ photo voltaic methods, the Invesco Photo voltaic ETF suffered $417M of outflows in December, the worst month in its 14-year history.

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