SolarCity again uneven in Q3 as loans and system sales make their mark

first_imgSolarCity again uneven in Q3 as loans and system sales make their markRepresenting 23% of gross residential megawatts booked in the third quarter, SolarCity loan and cash sales helped drive a 76% revenue increase year-over-year as company exceeds 300,000 solar customers. November 10, 2016 Ian Clover Finance Installations Manufacturing Markets Markets & Policy Share Concerns over the financial viability of SolarCity’s business model have become more vocal in recent months, but today’s third quarter results could well muffle the murmurs of discontent, at least for a short while. The U.S. rooftop solar installer was always a strong advocate for its no-money-down financing scheme, but has listened to its customers’ needs and demands in introducing its new solar loan and cash sales schemes – enabling homeowners to not just lease but also own their rooftop solar systems and thus be eligible for the 30% Federal Investment Tax Credit (ITC). This evolution of the SolarCity business model appears to be paying dividends, with third quarter (Q3) financials revealing positivity across the board. SolarCity’s revenue for Q3 reached $201 million, which represents a 76% increase year-on-year, and the 187 MW of new solar PV installed surpassed the firm’s 170 MW guidance. The firm’s installation breakdown gave a clear indication of its diversification: 147 MW of Q3’s installations were in residential, with the remaining 40 MW in the growing C&I space. Among SolarCity’s residential customers, 10% of the MW installed came via its new loan and cash sales program, which also represented 23% of gross residential MW booked in the quarter. As a result, gross profit increased by 183% year-on-year and the company added its 300,000th customer. Losses for the quarter were $225.3 million, up from $216 million in Q2. SolarCity’s installations are becoming more affordable, too: cost per Watt dipped back below $3.00 to $2.89 (a 5% reduction), with the value of MW deployed under its energy contracts was $3.38 per Watt. This represented a contraction on Q2 2016 when the value of MW deployed was $3.62/W. SolarCity attributes this to a higher mix of lower-priced C&I and East coast residential deployments in its mix. In an investor letter, SolarCity provided further breakdown of what these costs mean: of that $3.38/W figure, $1.78/W was generated upfront, with $1.60/W representing the net present value offered at a 6% discount rate. Installation costs per Watt improved over the quarter by $0.05 to $2.02. Added together, SolarCity’s net present value of customer cash flows (after project financing) stood at $2.2 billion at the end of the quarter across a cumulative installed total of 2.45 GW across the U.S. The company confirmed that it would not be holding a conference earnings call to discuss the financials due to the ongoing $2.6 billion takeover offer from Tesla Motors, on which a shareholder vote is scheduled for November 17. SolarCity said that it is heading into its “potential combination” with Tesla in a strong position, and cited the growing solar loan/system sales mix as a key driver behind its improving GAAP profitability. “Building on this momentum and buoyed by our new solar loan and solar roof products, we expect continued improvement in our installation run rates, cost per Watt and our cash generation in the fourth quarter of 2016 and 2017,” said the investor letter. Guidance for 2016 projects annual installations to top 900 MW, but the company declined to provide any further specific guidance on GAAP for the fourth quarter because of the proposed Tesla acquisition. “The integration of SolarCity’s sales, service, and installation operations with Tesla’s extraordinary product development and manufacturing acumen will create a highly differentiated, integrated sustainable energy company ideally positioned to capture the $1 trillion-plus global marketplace for transportation, energy, sales and energy infrastructure,” concluded the letter, which was co-signed by CEO Lyndon Rive and CFO Radford Small.Popular content Submarine cable to connect 10.5 GW wind-solar complex in Morocco to the UK grid Emiliano Bellini 22 April 2021 pv-magazine.com UK-based Xlinks is planning to build 10.5 GW of wind and solar in Morocco and sell the power generated by the huge plant in the UK. This should be ma… Solar park built on rough wooden structures comes online in France Gwénaëlle Deboutte 26 April 2021 pv-magazine.com French company Céléwatt energized its 250 kW ground-mounted array, built with mounting structures made of raw oak wood.April 26, 2021 Gwénaëlle Debo… The weekend read: PV feed in, certified pv magazine 1 May 2021 pv-magazine.com As more renewable energy capacity is built, commissioned, and connected, grid stability concerns are driving rapid regulatory changes. In the Europea… Enabling aluminum in batteries Mark Hutchins 27 April 2021 pv-magazine.com Scientists in South Korea and the UK demonstrated a new cathode material for an aluminum-ion battery, which achieved impressive results in both speci… The Hydrogen Stream: 20 MW green hydrogen plant in Finland, two Australian projects move forward Sergio Matalucci 20 April 2021 pv-magazine.com Storegga, Shell and Harbour Energy want to set up a 20 MW blue hydrogen production facility in the U.K. Australia’s Origin Energy wants to build a hy… ITRPV: Large formats are here to stay Mark Hutchins 29 April 2021 pv-magazine.com The 2021 edition of the International Technology Roadmap for Photovoltaics (ITRPV) was published today by German engineering association VDMA. The re… iAbout these recommendations Share Ian Clover Ian joined the pv magazine team in 2013 and specializes in power electronics (inverters) and battery storage. Ian also reports on the UK solar market, having worked as a print and web journalist in Britain for various multimedia companies, covering topics ranging from renewable energy and sustainability to real estate, sport and film.More articles from Ian Clover [email protected] Related content Higher performance with bigger modules a ‘no brainer’ Sandra Enkhardt 26 April 2021 pv-magazine.com Jan Bicker, who replaced Steve O’Neil as the CEO of REC on March 1, says that one of his top priorities is the ongoing d… Meyer Burger unveils 400 W heterojunction solar module Emiliano Bellini 28 April 2021 pv-magazine.com The solar module will be available in three versions – white, black, and glass-glass. The products have an output of up … Longi crowned king of solar with 24.5 GW of panels shipped in 2020 Vincent Shaw 22 April 2021 pv-magazine.com With production capacity expanded for solar wafers, cells and modules last year, and set to rise again in 2021, the gian… Optimization algorithm for vertical agrivoltaics Emiliano Bellini 30 April 2021 pv-magazine.com Developed by Swedish scientists, the proposed algorithm is said to calculate a project’s ideal design by combining clima… Auctions will not influence PPA prices in Spain Pilar Sánchez Molina 20 April 2021 pv-magazine.com LevelTen Energy reports each quarter on the prices that wind and solar project developers have offered for power purchas… The weekend read: China’s push for decarbonization Andreas Walstad 24 April 2021 pv-magazine.com The carbon market is finally a reality in China. After 10 years of delays, regional pilot schemes and general uncertaint… iAbout these recommendations Elsewhere on pv magazine… Cracking the case for solid state batteries pv magazine 29 April 2021 pv-magazine-australia.com Scientists in the UK used the latest imaging techniques to visualize and understand the process of dendrite formation an… MIBEL alcanzó nuevamente los precios más bajos de Europa mientras subieron en el resto de mercados eléctricos pv magazine 23 March 2021 pv-magazine.es En la tercera semana de marzo los precios de la mayoría de mercados eléctricos europeos subieron, mientras que MIBEL mar… Tasmanian Labor installs solar at the top of its campaign promises Blake Matich 8 April 2021 pv-magazine-australia.com Tasmania (TAS) is going to the polls on May 1, and the opposition Labor Party has put forth a $20 million plan to fund l… India closing in on 7 GW of rooftop solar pv magazine 13 April 2021 pv-magazine-australia.com India’s cumulative installed capacity of rooftop solar stood at 6,792 MW as of December 31, 2020, with 1,352 MW having b… Spotlight on Australian solar Bella Peacock 21 April 2021 pv-magazine-australia.com Calculating the average sunlight hours data from the Bureau of Meteorology from January toDecember 2020, Darwin was cro… Q&A: EEW’s $500 million Gladstone solar to hydrogen project is just the start Blake Matich 18 March 2021 pv-magazine-australia.com pv magazine Australia: Australia is the testing ground for a lot of different aspects of the future green hydrogen market. Cracking the case for solid state batteries pv magazine 29 April 2021 pv-magazine-australia.com Scientists in the UK used the latest imaging techniques to visualize and understand the process of dendrite formation an… MIBEL alcanzó nuevamente los precios más bajos de Europa mientras subieron en el resto de mercados eléctricos pv magazine 23 March 2021 pv-magazine.es En la tercera semana de marzo los precios de la mayoría de mercados eléctricos europeos subieron, mientras que MIBEL mar… Tasmanian Labor installs solar at the top of its campaign promises Blake Matich 8 April 2021 pv-magazine-australia.com Tasmania (TAS) is going to the polls on May 1, and the opposition Labor Party has put forth a $20 million plan to fund l… India closing in on 7 GW of rooftop solar pv magazine 13 April 2021 pv-magazine-australia.com India’s cumulative installed capacity of rooftop solar stood at 6,792 MW as of December 31, 2020, with 1,352 MW having b… Spotlight on Australian solar Bella Peacock 21 April 2021 pv-magazine-australia.com Calculating the average sunlight hours data from the Bureau of Meteorology from January toDecember 2020, Darwin was cro… Q&A: EEW’s $500 million Gladstone solar to hydrogen project is just the start Blake Matich 18 March 2021 pv-magazine-australia.com pv magazine Australia: Australia is the testing ground for a lot of different aspects of the future green hydrogen market. Cracking the case for solid state batteries pv magazine 29 April 2021 pv-magazine-australia.com Scientists in the UK used the latest imaging techniques to visualize and understand the process of dendrite formation an… 123456Leave a Reply Cancel replyPlease be mindful of our community standards.Your email address will not be published. Required fields are marked *CommentName * Email * Website Save my name, email, and website in this browser for the next time I comment. By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.Further information on data privacy can be found in our Data Protection Policy.iAbout these recommendationsKeep up to date pv magazine Global offers daily updates of the latest photovoltaics news. We also offer comprehensive global coverage of the most important solar markets worldwide. Select one or more editions for targeted, up to date information delivered straight to your inbox.Email* Select Edition(s)*Hold Ctrl or Cmd to select multiple editions.Tap to select multiple editions.Global (English, daily)Germany (German, daily)U.S. (English, daily)Australia (English, daily)China (Chinese, weekly)India (English, daily)Latin America (Spanish, daily)Brazil (Portuguese, weekly)Mexico (Spanish, daily)Spain (Spanish, daily)France (French, daily)We send newsletters with the approximate frequency outlined for each edition above, with occasional additional notifications about events and webinars. We measure how often our emails are opened, and which links our readers click. To provide a secure and reliable service, we send our email with MailChimp, which means we store email addresses and analytical data on their servers. You can opt out of our newsletters at any time by clicking the unsubscribe link in the footer of every mail. For more information please see our Data Protection Policy. Subscribe to our global magazine SubscribeOur events and webinars Out with the old… A guide to successful inverter replacement , pv-magazine.com Discussion participantsRoberto Arana-Gonzalez, Service Sales Manager EMEA, SungrowFranco Marino, Regional Service Mana… Reducing solar project risk for extreme weather 20 April 2021 pv-magazine.com Discussion participantsDaniel H.S. Chang, VP of Business Development | RETCGreg Beardsworth, Sr. Director of Product M… Insight @ Energy Storage North America 2020 11 November 2020 pv-magazine.com Developed and moderated by pv magazine, the panel sessions address a hot topic within the industry, from multiple angles. iAbout these recommendations pv magazine print The feasibility of India’s auctions Uma Gupta 7 April 2021 pv-magazine.com The offtaker’s creditworthiness, the ease of land acquisition, infrastructure readiness, policy consistency and clarity,… Curtailing corrosion: making mounting structures last pv magazine 7 April 2021 pv-magazine.com Raw material quality is vital for solar power plants, particularly given higher expectations for their lifetimes, as 30+… Strong growth ahead for storage pv magazine 7 April 2021 pv-magazine.com Annual battery storage installations will exceed 10 GW/28 GWh in 2021, following a particularly strong year in 2020, des… Polysilicon from Xinjiang: a balanced view pv magazine 7 April 2021 pv-magazine.com As of March, the United States and Europe were considering sanctions on polysilicon from Xinjiang, China, due to concerns over forced labor. Pushing POE for longer module lifetimes Mark Hutchins 7 April 2021 pv-magazine.com Polyolefin-based films are estimated to represent around 20% of the market for PV module encapsulation materials – a sha… Battery testing builds certainty pv magazine 7 April 2021 pv-magazine.com Owners and operators of energy storage systems, as well as investors, need transparent ways to evaluate battery performance. iAbout these recommendationslast_img read more