The bad performance of Solar Integrated Roofing stock (OTCPINK: SIRC) may in part be explained by a loophole that home builders tried to backdoor California’s solar mandate.
The entire solar mandate was close to falling apart after home builders and other industry insiders attempted to exploit “community solar” into meaning that they didn’t have to build houses with solar as long as an energy company like PG&E using its solar farms to produce the power supplied to the house.
California state officials declined on Wednesday, November 14, 2019, a program that would allow new homes to be built in Sacramento without rooftop solar panels.
Lobbyists for home builders and other groups pushed a proposal that would allow home builders to take credit for electricity produced at existing solar farms, rather than installing solar panels on new single-family homes and low-rise multifamily buildings. You can read the report here in the LA Times.
The good news is that state officials said no for now to the proposal because they see the huge loophole they created by not specifically defining what they meant by “community solar”. The intent of the mandate allowing “community solar” was to facilitate builders of specialty buildings that by design did not have roofs large enough for solar panels.
That was close folks. All our time and investments into California solar just about went down the drain this week. This drama may explain why SIRC stock took a big leg down over the last week.
Let me just make sure I get this straight. President Trump is so bad because the trade war with China is creating business uncertainty which is hurting stocks and the economy. However, these same California Democrats (Nancy Pelosi and Adam Schiff) that accuse Trump of creating business uncertainty are now themselves creating business uncertainty in California by being wishy-washy about their own solar mandate. If they are going to be champions against creating business uncertainty, they should at least be consistent in their cause. Maybe they should focus on reducing business uncertainty in their own state of California before trying to plow the President’s pasture. And where’s Comcast’s CNBC or Turner’s CNN reporting on how Democrats are creating business uncertainty in California? I think we know the answer.