Sunrun CEO Mary Powell Warns Solar Fee Risks Pushing Californians Off Power Grid

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Sunrun($NASDAQ:RUN) CEO Mary Powell has warned that a potential monthly charge to connect rooftop solar systems to California’s power grid is “a perilous path” that risks causing more residents to want to leave the state. In an interview Monday, Powell told Bloomberg she hopes to see a “step-change improvement” in California’s rooftop incentive plan. Powell’s comments come as Sunrun shares have fallen 5.8% in Tuesday’s trading. According to Bloomberg, the potential solar fee could make it more expensive for Californians to use solar power, which could in turn lead more people to want to leave the state.

Powell said she is hopeful that California will make some changes to its incentive plan in order to make it more accessible for people who want to use solar power. She added that Sunrun is committed to working with the state to find a solution that works for everyone.

Market Price

On Tuesday, Sunrun CEO Mary Powell warned that a proposed fee on solar customers in California could have a significant impact on the state’s ability to meet its renewable energy goals. This, she said, could price many people out of the market for solar power and push them back onto the grid. Powell urged the commission to consider the potential impacts of the fee before making a decision, and said that Sunrun is committed to working with the state to ensure that its renewable energy goals are met.

VI Analysis

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However, the VI app’s star chart for SUNRUN INC indicates that it has a low health score of 2/10, due to its cashflows and debt. This means that it is less likely to safely ride out any crisis without the risk of bankruptcy. SUNRUN INC is classified as a “cheetah” company, which means that it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. High growth companies are deemed more volatile as they attempt to grow faster. In terms of its key strengths and weaknesses, SUNRUN INC is strong in growth but weak in asset, dividend, and profitability.

Summary

The fee, which is set to go into effect in January, will charge solar customers an additional $6 to $10 per month. Powell said that the fee could price some people out of the market, and that it could have a “chilling effect” on the solar industry. The stock price of Sunrun moved down the same day that Powell made her comments.