Eric Wesoff from GTM has a great piece this morning about the financial position of Sungevity prior to announcing the merger with Easterly. The 8-K and corresponding presentation have a load of information and the article explains it quite well. What it comes down to is the lack of flow from lead to customer to aggregator (finance platform) and finally to long term owner. Each level of solar development is showing to have too much friction and cost for what the deals can be developed for. Add together the drive to increase volume (which costs money) with the lack of liquidity and you end up with asset rich and cash poor balance sheets. Margins exist, much like the solar unicorn. We shall find him together at Intersolar next week!
- Greentech Media: Sungevity’s Reverse Merger a ‘Great Deal’ Considering Bleak Cash Situation
- Midwest Energy News: Utility-backed group divides Illinois solar advocates
- Rocky Mountain Institute: Could Net-Zero Energy Schools Improve Children’s Education?
- PV-Tech: First Solar ends heterojunction foray – shifts Malaysian plant to CdTe Series 5 assembly
- Forbes: California Outshines Other States In Solar Power
- WFSU: A Solar Report And Its Shades Of Meaning
- Bloomberg: MGM Resorts Beats Toys ‘R’ Us With Biggest Rooftop Solar System
- Utility Dive: California dreaming – Utilities uneasy with regulator’s vision to remake their business model
Opinion
Have a great day!
Yann