The past year has been full of contradictions for renewable energy in the United States. Ever since the Inflation Reduction Act went into effect in 2022, American businesses have invested more than $110 billion in green technology. Renewable energy is currently the cheapest form of power on the planet, and seems likely to remain so as it becomes more common. However, some investors in the U.S. have pulled away from solar and wind technology as inconvenient state laws and overseas competition make it harder for these energy sources to turn a profit.
A Bloomberg report from Nov. 3 provides a salient case study for solar power investments. The article examines three solar power companies: Sunrun Inc., SunPower Corp., and SolarEdge Technologies Inc. All three organizations sell equipment for residential solar power; all three failed to meet their sales goals for Q3 2023; and all three have taken a stock price hit of roughly 10% since then.
The first two companies are based in the U.S., while the third is based in Israel. But all three companies cater to American buyers, particularly in California. Before, the state’s Net Energy Metering (NEM) 3.0 plan offered generous compensation for residents whose home solar panels generated excess power. As of December 2022, the California government has cut those benefits by about 75%, making solar energy a much tougher sell for everyday homeowners.