Edward Fenster, Sunrun’s co-Founder and co-Executive Chairman, Issues Statement Responding to Draft Proposed Changes to California’s Net Energy Metering Program
SAN FRANCISCO, Dec. 13, 2021 (GLOBE NEWSWIRE) -- Fenster says the Proposal “represents California politics at its worst and loses sight of what constituents want -- innovation, control, and fast solutions -- in favor of propping up failed and stodgy incumbents.”
Fenster summarizes, “While we appreciate the CPUC’s efforts to encourage battery adoption, the Proposed Decision is contrary to the state’s objectives of addressing climate change and eliminating frequent blackouts. We believe the solar-customer fixed fees averaging about $700 per year are in violation of the Public Utility Regulatory Policies Act of 1978 (“PURPA”). If adopted, the proposal will cost tens of thousands of jobs, especially among the thousands of solar companies unable to offer battery storage solutions due to supply shortages. The proposal is contrary both to what Californians have clearly said they want and to editorials in all major California newspapers. Finally, the proposed reduction to grandfathering for existing customers is an outrageous violation of trust and undermines the Commission’s stated interest in consumer protection.”
Fenster notes that if the proposed decision is adopted, solar and storage customers will not take service under the new tariff and will instead install self-consuming systems, such as were common for years in Hawaii, thereby avoiding the newly proposed fixed fees. In California, customers would take grid electric service under a tariff that forbids exports and simply dispatch their battery in line with consumption overnight and into the morning. He notes that society loses in such an outcome, which would deprive the grid of evening exports, worsen pollution, and increase the severity of blackouts.
For the full statement, please visit https://investors.sunrun.com/NEM.
Forward Looking Statements
This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements related to: the implications and impacts of the proposed changes to the Net Energy Metering (NEM) regulations issued by the California Public Utility Commission (CPUC) and the implications and impacts resulting from the adoption of those proposed changes; the Company’s leadership team and talent development; the Company’s financial and operating guidance and expectations; the Company’s business plan, trajectory and expectations heading into 2022, market leadership, competitive advantages, operational and financial results and metrics (and the assumptions related to the calculation of such metrics); the Company’s momentum in the company’s business strategies, expectations regarding market share, addressable markets, customer value proposition, market penetration, financing activities, financing capacity, product mix, and ability to manage cash flow and liquidity; the growth of the solar industry; the Company’s ability to manage suppliers, inventory, and workforce; the impacts of COVID-19 on the solar industry and the Company’s operations; supply chains and regulatory impacts affecting supply chains; factors outside of the Company’s control such as macroeconomic trends, public health emergencies, natural disasters, and the impacts of climate change; the legislative and regulatory environment of the solar industry; expectations regarding the Company’s storage and energy services businesses, anticipated emissions reductions due to utilization of the Company’s solar systems; expectations regarding the growth of home electrification, electric vehicles, virtual power plants, and distributed energy resources. These statements are not guarantees of future performance; they reflect the Company’s current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. The risks and uncertainties that could cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements include: the impact of COVID-19 on the Company’s operations; the Company’s continued ability to manage costs and compete effectively; the availability of additional financing on acceptable terms; worldwide economic conditions, including slow or negative growth rates; rising interest rates; changes in policies and regulations, including net metering and interconnection limits or caps and licensing restrictions; the Company’s ability to attract and retain the Company’s solar partners; supply chain risks and associated costs; realizing the anticipated benefits of past or future investments, strategic transactions, or acquisitions, and integrating those acquisitions; the Company’s leadership team and ability to retract and retain key employees; changes in the retail prices of traditional utility generated electricity; the availability of rebates, tax credits and other incentives; the availability of solar panels, batteries, and other components and raw materials; the Company’s business plan and the Company’s ability to effectively manage the Company’s growth and labor constraints; the Company’s ability to meet the covenants in the Company’s investment funds and debt facilities; factors impacting the solar industry generally, and such other risks and uncertainties identified in the reports that we file with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements used herein are based on information available to us as of the date hereof, and we assume no obligation to update publicly these forward-looking statements for any reason, except as required by law.
Citations to industry and market statistics used herein may be found in our Investor Presentation, available via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com.
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Released December 13, 2021