Sunrun stock tumbles in wake of SEC investigation

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Sunrun stock reached its lowest point since May 2016 at the close of trade yesterday, falling 8.8% at US$4.75 per share. Source: Sunrun

Shares of residential solar company Sunrun fell nearly 10% in trading yesterday after news broke of the investigation by the US Securities and Exchange Commission (SEC) on whether the company adequately disclosed how many customers had cancelled contracts.

The stock of the San Francisco-based firm dropped 8.8% down to US$4.75 at the close of trading in New York; the lowest it had fallen in more than 11 months.

The SEC has already issued a subpoena to Sunrun and interviewed past and current employees. The Commission is “also looking into SolarCity” according to a filing.  

While some solar companies have disclosed that increasing numbers of customers have cancelled contracts, they have not given specific numbers or many details.

Contract cancellations are a potential indicator of how well these companies are faring.

Sunrun emailed a statement to Bloomberg saying that the solar install figures it discloses account for cancelled contracts.

“We only provide guidance on installations and not on bookings and we have been within 1% of our annual guidance to investors in both 2015 and 2016 when we have been public,” Edward Fenster, Sunrun’s chairman, said in the statement.

According to Bloomberg, Sunrun installed 282MW of solar last year, only 3MW shy of its forecast install figures.

The news comes as SolarCity parent company Tesla reported a 25% drop in solar install figures for Q1 2017. Tesla also recently announced it is abandoning the door-to-door sales strategy used by SolarCity and many others in the industry.

Overall, the residential solar industry has taken some rap for high-pressure sales strategies and the investigation could reveal that Sunrun’s greater problem is it is pushing customers away with strong-armed tactics.

If the investigation reveals material information about cancellations of solar system contracts that is not currently being disclosed by companies, it could be a real concern for investors. 

Law firms Pomerantz and Rosen are investigating the potential securities claims on behalf of Sunrun shareholders.

6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.

Read Next

July 27, 2021
Canadian Solar has closed a BRL500 million (US$100 million) financing facility to develop a Brazilian solar portfolio claimed to be the country’s largest, while also giving it the option to hold built solar assets for longer.
July 27, 2021
A round-up of the latest news from the US solar market, featuring Vision Solar’s commitment to hire “hundreds” of sales staff as part of a two-state expansion, Recurrent Energy’s sale of two major assets in Texas and news of 8minute Solar Energy strengthening its legal team.
July 27, 2021
Tesla reported retrofit solar installations of 85MW in Q2 2021, cementing its recovery from a worst-ever performance in the corresponding period last year.
July 26, 2021
The pace of climate action in the US is “wholly unacceptable”, according to the director of the US Department of Energy’s (DOE) Loan Programme Office
July 26, 2021
Meyer Burger is considering its legal options after long-time heterojunction tandem solar cell manufacturing partner Oxford PV ended its collaboration agreement unexpectedly.
July 22, 2021
US Senate majority leader Chuck Schumer has failed in a bid to fast-track the US’ US$1.2 trillion infrastructure investment bill through the Senate. But there remains hope that further progress could be made as early as next Monday, when some Republican senators believe the bill will be fit to proceed.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021