SunPower invests in California market ahead of NEM 3.0 implementation

Facebook
Twitter
LinkedIn
Reddit
Email
For a third quarter in a row, SunPower increased its customer growth and added 23,700 customers in Q4 2022. Image: SunPower.

Residential solar installer SunPower has invested in its California sales and marketing division to ensure that as many customers can apply for favourable net energy metering (NEM) 2.0 rates.

California’s rooftop solar backlog is expected to increase ahead of the implementation of NEM 3.0 on 14 April as customers who submit an application before the deadline will be able to secure NEM 2.0 rates, while the installations will be realised during 2023.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

As a result of these efforts, the company has seen a significant response in new bookings and backlog, according to Peter Faricy, CEO at SunPower.

“It’s our expectation by the time we get back to the fourth quarter that we’ll resume more normal growth rates and things will be back on track, particularly as California take advantage of both the offer for PV plus solar battery,” said Faricy.

With the passing of the Inflation Reduction Act (IRA), SunPower expects to monetise solar and battery storage benefits through a combination of more robust sales, increased power pricing and qualification for the bonus credits.

To that end, the residential solar installer has added more domestically sourced solar PV modules to its supplies in 2023 and expects to bring additional domestic supplies in 2024 and beyond, added Faricy.

One such supply deal has been recently done with module manufacturer Hanwha Qcells from its facility in Dalton, Georgia, and for which SunPower expects to be able to qualify for the IRA’s 10% domestic content bonus credit.

At the same time, during Q4 2022 SunPower signed a new supply agreement with solar module supplier Maxeon for interdigitated back contact solar panels until 2025.

“Right now, we’re just prepared to talk about our agreement with Maxeon and Qcells, but we have other agreements in the works, and I look forward to sharing more details on that with all of you in the months to come,” said Faricy.

For a third quarter in a row, SunPower increased its customer growth with a record number of new customers in a quarter with 23,700 in Q4 2022, up 39% year-on-year. In the fiscal year of 2022, the company added 83,100 customers and finished above its high-end guidance for 2022.

SunPower also registered an increased revenue in Q4 2022 with US$497 million, up 43% from Q4 2021, while adjusted EBITDA in Q4 2022 was US$36.1 million, up from US$7.7 million in Q4 2021.

The adjusted EBITDA for the full fiscal year of 2022 increased 26% from the previous year and ended at US$95 million. The residential solar installer expects to continue a year-over-year increase in 2023 due to higher pricing power, improved attachment rates for its leasing product SunPower Financial, its storage product SunVault and a continuous effort to reduce customer acquisition costs.

However, the company expects a 500 basis point reduction in its customer growth from new homes in 2023 with an additional 500 basis point reduction in year-over-year customer growth from the transition to NEM 3.0 in California, which includes the impact of installations from NEM 2.0 orders in Q1 2023, according to Guthrie Dundas, interim chief financial officer at SunPower.

SunPower is forecasting for the fiscal year 2023 an adjusted EBITDA of US$125-155 million and an increase of 90,000-110,000 customers.

Conference call transcript from Seeking Alpha.

8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

Premium
May 24, 2024
Quarterly reports from China’s big-five PV module producers highlight the challenges PV manufacturers face in maintaining profitability.
Premium
May 23, 2024
How VPPs could help reduce solar PV curtailment in California, while also helping financially to install a solar array and storage.
May 16, 2024
Residential solar installations in California since the introduction of the NEM 3.0 have been roughly equal to the amount in the prior year.
May 15, 2024
Tigo Energy has published its financial results for the first quarter of 2024, which include revenues of US$9.8 million.
May 15, 2024
Nextracker's backlog has posted the financial results for Q4 2024 and FY 2024, with backlog increasing by more than 50%.
May 14, 2024
The European Commission (EC) has published new recommendations to encourage the faster permitting and installation of new renewable projects.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 29, 2024
11am (EDT) / 5pm (CEST)
Solar Media Events
June 4, 2024
London, UK
Upcoming Webinars
June 11, 2024
3:00 PM (BST) / 4:00 PM (CEST)
Solar Media Events
July 2, 2024
Athens, Greece