Solar profits are a funny metric. Yesterday, Sunrun had its first earnings release post IPO and along with every other solar company, the street will hype about their losses and how it cannot be sustained. On the other hand, the company will be judged by how many MW it added to its balance sheet. So here’s the catch, how is a solar company supposed to add assets to its balance sheet and not pay for them? If the company doesn’t use equity to invest in the assets, they aren’t their assets and will sit on someone else’s balance sheet. I am oversimplifying the complexity of solar project finance but you catch my drift. Stop judging solar companies on EPS, instead look at their assets and the retained earnings those add to the company.
- PV-Magazine: Sunrun shows growth in first quarterly results as a public company
- Renew Economy: Australia tipped to have 50GW of solar capacity by 2040
- Renewable Energy World: The Future of the Internet of Things in Renewable Energy
- CleanTechnica: California’s First Commercial Solar Desalination Plant Offering Shares Through DPO
- Las Vegas Sun: Solar industry pressures Sandoval, while thanking PUC
- Nasdaq: 2020 Could Mark The Tipping Point For U.S. Solar
- KWCH: Westar Energy to make solar energy available to all customers
- Fox: Gov. Baker pressing lawmakers to take action on solar, hydro power bills by end of year
Opinions
Have a great day!
Yann