Rooftop solar companies are getting crushed
Illustration: Aïda Amer/Axios
The struggles in the rooftop solar market have extended to even the most premier U.S. brands, like SunPower.
Why it matters: Despite record growth in home solar in the U.S., the companies that install those panels on rooftops are getting hit by high interest rates and a slowdown in sales.
Driving the news: American solar giant SunPower, which is majority-owned by French energy giant TotalEnergies, on Monday issued a going concern warning and said it breached a credit agreement.
- The company's shares plunged as much as 41% on the news. SunPower stock rose slightly this morning to $4.40.
- Clean energy stocks across the sector, including offshore wind, electric vehicles and hydrogen, have fared worse than the broader market and fossil fuel energy stocks.
- Recent changes in California's net metering rules mean the state is expected to see solar installations slow down.
Big picture: Researchers are predicting a decline in residential home solar installations in the U.S. in 2024 before growth resumes in 2025, according to the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
Yes, but: At the same time, a record 210,000 home solar systems were installed in the third quarter of this year in the U.S.
- Including solar for utility and commercial sectors, solar accounted for close to half of all new electric generating capacity added in the U.S. in the first three quarters of 2023.
