For the trade lawyers, as you read this. What does SunPower buying SolarWorld and Suniva asset sale mean for a global tariff/duty settlement? Does SunPower get to speak for SolarWorld on this issue now?
Not All Bad Deeds Go Punished. SunPower has entered into an agreement to acquire the shares of SolarWorld Americas, Inc. This took most of the solar industry by surprise, myself included, when the news broke before the market opened yesterday. The market has reacted positively with a 11% bump in stock price based on the notion that SunPower has a way to get around 201 tariffs. A few hours before those news broke, the comments about the 201 exclusions came out in which SolarWorld supported SunPower’s request for exclusion which seemed odd given the market segment, residential, that both companies operate in.
Reading Between The Lines. I don’t actually think this is about 201 tariffs. If SunPower were to acquire SolarWorld for 201, why not wait until the exclusion was rejected? I think that SolarWorld was in a bad place and needed a buyer which means that the price was right. At the same time, SunPower needed to add a product that could both be labeled as Made in the USA and cheaper. SunPower installers love the premium product but all of them carry a second product so they don’t lose deals purely based on price. Now, SunPower could offer a two tiered offering into its dealer network, which is as good as it gets. To summarize, SunPower buying SolarWorld is more of a play for residential market share than 201 tariffs.
Future Of Suniva. In the ongoing bankruptcy proceedings for Suniva, SQN has let the court know that they are selling some (or all) of the companies manufacturing equipment. This means that most of the value of the company aside from any intellectual property is leaving the company, if a buyer comes around. The 201 trade case is ending much quicker than it started, we haven’t even gotten to the point where prices can prop up local manufacturing.
The Business Of Solar. The annual solar means business report is out and Target is the big leader, adding 40MW in 2017 and the first to reach 200MW. Congrats to the Target team, many of whom are readers, for showing great corporate leadership. The other takeaway is Walmart putting the brakes on its program or at least taking a hiatus. Would be interesting to hear what caused the slowdown of deployment.
The Charging Infrastructure. Now VW is getting into the race to deploy more charging infrastructure. I question the OEM specific nature of this and why the utilities aren’t out front leading the development. When I go to my local Whole Foods, there is a charging station there that is free for me to use, a benefit for Whole Foods since I stay in the store longer than I otherwise would.
- PV-Tech: SunPower buys SolarWorld Americas
- SolarWakeup: We’re Happy For SolarWorld Employees – But That’s It
- Reuters: Suniva creditor wins U.S. bankruptcy court approval to sell company’s assets
- SolarWakeup: Suniva Being Sold For Parts (Literally), Just Like We Said
- Bloomberg: France’s Oil Major Is Getting Ready for an Electric Future
- The Verge: VW vows to build massive electric car charging network across US
- Desert Sun: The Trump vs. California environmental fight nobody’s talking about
- Greentech Media: Solar Software Is About to Enter a Golden Age of Innovation
Opinion
Have a great day!
Yann