California regulator delays vote to cut rooftop solar subsidies
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California Public Utilities Commission President Alice Reynolds has asked for more time to consider making changes to the controversial proposal that would cut incentives for home solar systems after getting an earful from solar companies, utilities, environmental groups and other interested parties.
Sunrun (NASDAQ:RUN), the largest U.S. solar rooftop installer and considered most vulnerable to California's proposed changes, pared earlier ~10% losses to close -7%.
Other solar stocks including Enphase Energy (NASDAQ:ENPH), SolarEdge Technologies (NASDAQ:SEDG) and First Solar (NASDAQ:FSLR) also trimmed losses but still finished sharply lower.
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The delay "highlights just how politically sensitive this proceeding is and how difficult it is to substantially alter the economics of a cottage industry that has grown to gargantuan proportions," Glenrock Associates utility analyst Paul Patterson told Bloomberg.
California's incentives have helped promote the installation of 1.3M home solar systems in the state, ~45% of the entire U.S. total.
A recent analysis from Wood Mackenzie warned California's residential solar market could be cut in half by 2024 if state regulators enact the proposal.