Why the Bifurcation of an Industry’s Supply and Demand is Bad for Everyone
“Happy families are all alike; every unhappy family is unhappy in its own way,” Leo Tolstoy, Anna Karenina. In the solar industry, strong markets are alike in that they have incentives, subsidies and/or mandates to drive growth and adoption but also a fair amount of political and economic risk and every weak or collapsing market is alike in that it no longer has incentives, subsidies and/or mandates to drive it and its political and/or economic risk has become a reality.
A weak market is the mirror image of a strong one that is, everything is seen in reverse. In solar, a leading market share receives more notice than the low-to-negative margins that go along with it. For example, solar lease etc., company Sunrun is being touted for passing SolarCity in terms of its market share even as it racks — pardon the pun — up losses. The company reported losses from operations of $130.7 million and net losses of $180.9 million for nine months of 2017. True, the company lost less money than it did in 2016, however this should not be spun as a positive.
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