SolarCity closes higher after CA solar bill signed

Gov. Jerry Brown has signed a bill allowing for California solar power producers to engage in unlimited net metering (the dialing back of electricity meters to account for power provided to the grid). Before, net metering was limited to 5% of a utility's peak load.

The bill also guarantees that customers buying panels before July '17 will be able to sell power at favorable rates for the lifetime of their panels.

Needham's Y. Edwin Mok considers the bill a positive for SolarCity (SCTY +1.4%), which closed higher on a rough day for tech. Mok points out the bill eliminates net metering risk in the largest rooftop solar market in the U.S., and paves the way for other states to enact similar bills. However, he reiterates a Hold on the company due to its valuation.

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Comments (2)
  • Val Halla
    , contributor
    Comments (305) | Send Message
    positive? this is a home run. if other States follow suit you could see people dropping the grid like a bad habit. since the battery problem is now a solution oil prices are now free to rise ten fold. entergy had a great day today...i recommend buying it.
    8 Oct 2013, 09:59 PM Reply Like
  • King Rat
    , contributor
    Comments (1904) | Send Message
    There are two problems that will arise to your scenario that politicians will be slow to react to until too late.
    #1 is picking up of the tab
    #2 is when enough people do that, the utilities will slap on new miscellaneous fees


    I have some friends who moved to CA last year and got a Prius even though they hardly drive. They were shocked that their registration fee was 4x their neighbors' registration for ICE vehicle. Don't be shocked next year when there is a new "grid dialing diagnostics fee" charged to solar panel owners to the tune of $40/month.
    9 Oct 2013, 02:52 AM Reply Like
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