After hot rally, solar shares turn ice cold

solar array(h/t Raining Sky) After their hot rally at the end of last year, shares of solar energy firms have turned ice cold as concerns about slower growth and regulatory uncertainties plague the group.

SolarCity (SCTY.O) led the sell-off on Tuesday after the company cut its 2016 forecast for solar panel installations late on Monday and posted a larger-than-expected quarterly loss. The stock, down 25 percent at $16.94, was on track for its worst decline in three months and is down 66.8 percent for the year.

Shares of Sunrun (RUN.O) lost 12.1 percent to $6.49 and are down 45 percent for the year. Vivint Solar (VSLR.N), which also announced a first-quarter loss after the bell on Monday, shed 4 percent to $2.38 on Tuesday and is down 75 percent since Dec. 31.

Investors have been worried about the outlook for growth for the solar sector, especially following a pullback in an important Nevada solar support policy and uncertainty about pending regulatory decisions in other states.

Nevada regulators this year announced changes that mean new tariffs that will raise fees solar customers pay to use electric grids. Reimbursements to users are also being cut and investors fear such moves could be repeated in other states.

“For the longer term, solar is still viable, but right now on Wall Street, no one has any confidence in the regulatory environment for the state level,” said Robert Lutts, president and chief investment officer at Cabot Money Management in Salem, Massachusetts.

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Comments (2)

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    David Lewis


    I wonder if any the retirement funds and university holding that divested in fossil fuels went an invested in solar energy. If so, they did their clients a great disservice.

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    Retirement fund managers who put their clients into corporate welfare solar panel companies and others dependant on tax payer charity are fools . Most pension funds assume at least 5 % investment return . When dogs like
    tanking solar companies lose 60 -70 % in a year or head for bankruptcy the geniuses investing the money better be hitting some home runs elsewhere and be very diversified to not put the pension plans in a dangerously unfunded position .

    No wonder the AG’s are pumping “clean energy ” firms . The scary global warming platform relies on $billions of tax payer dollars
    going to these firms .
    No tax payer money = No business . No business , then all the huffing and puffing about scary global warming becomes pointless when one of the legs of the climate hustle stool disappears .
    Pension fund managers can only lose their clients money for so long before they rerun to their jobs as coffee servers .

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