- Verengo Solar: Filed for bankruptcy in November of 2016 and sold assets to Crius Energy for $11 million. Verengo’s headcount reached 1,000 in 2013 and it was one of the top residential solar installers. The company’s troubles may have begun as early as 2014 when it reportedly attempted a sale.
- NRG Home Solar: In May 2014, NRG had acquired Roof Diagnostics, one of the largest residential solar companies in the U.S. at the time with nearly 500 employees. After several restructuring attempts, the company finally shutdown the majority of its solar operations.
- OneRoof Energy: In July 2016, OneRoof announced that it was winding down its solar operations after a change in strategy in May of 2016. The company had announced its “Solar 2.0” strategy in which it moved away from traditional direct sales in favor of a channel strategy.
In March, the company announced the sale of residential solar assets to Greenbacker Residential Solar for $8 million in cash. OneRoof Energy was backed by Black Coral Capital.
- Tesla/SolarCity: The company announced in a Q4 shareholder letter that it will be reducing customer acquisition spend and shifting from leases to purchases (a broader market trend).
- Enphase Energy: Enphase announced a strategic investment in early 2017 and a strategy change. The company’s stock has dropped from $15 in mid-2015 to $1.28 currently.
The International specialized exhibition EXPO 2017 “Future Energy” in Astana will showcase recent developments in the sphere of renewable energy.
Opportunity for Consumers
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” — Warren Buffett
The turmoil in the residential solar market has presented a buying opportunity for consumers, as solar prices (defined as the lower quartile of the distribution curve) declined to approximately $3/watt depending on system sizes. The price decline is a result of an increase in supply in the module market and increasing installer competition, as illustrated by the events listed above. At these prices, solar can make an attractive investment in many states with cash returns exceeding 15 percent in New York, California and Massachusetts. With the S&P reaching record highs, a solar system could be a very attractive investment relative to common stocks in the next 12-18 months.
This article was originally published by Sunvago and was republished with permission.