FLNC - SunPower: Setbacks But Big Friends (And Rooftop Solar Is Interesting)

2024-06-04 14:02:23 ET

Summary

• SunPower’s focus is on US rooftop solar PV which has barely started in the US (except for California).
• I’m influenced by the Australian rooftop solar story, which is pivotal for both personal power production/management as well as for stabilization of grids with high penetration of renewables.
• SunPower is now 65.1% owned by TotalEnergies and Global Infrastructure Partners, meaning really big players are supporting the US rooftop solar business.
• The US rooftop solar environment has experienced a number of recent setbacks (notably in California) and this provides an opportunity for SunPower investors who can cope with risk.

It seems a weird time to be an investor, especially if you're interested in the intersection between climate change and decarbonization of power and transport. Two weeks ago, I wrote about Fluence Energy ( FLNC ), which is emerging as a major player in big battery storage and managing grids with big renewables' penetration. I argued that the future is binary for Fluence - either the decarbonization of power will be successful as part of addressing climate change, or the climate deniers and pro-fossil fuel push will dent the switch to renewables. I still argue that the upcoming presidential election is a key issue, but the possibility of recovery I noted for Fluence seems to be starting to be visible now. A number of my other renewable energy stocks are showing signs of recovery. Here I consider SunPower Corporation ( SPWR ), which is one of the most challenging investor stories over the past year, being down 70.7% year-on-year. I see signs of life....

For further details see: