Certain solar stocks are falling on Tuesday following suggestions for new utility rules in California.
Three major utility companies in California are proposing new Net Energy Metering rules that would have a negative effect on solar panel companies. This includes monthly customer charges and fees to access the power grid. The rules would also reduce the amount that customers could sell excess energy back to power companies for.
That could be bad news for solar panel companies that operate in the state, such as Sunrun (NASDAQ:RUN), SunPower (NASDAQ:SPWR), and Sunnova Energy (NYSE:NOVA). Morgan Stanley analyst Stephen Byrd highlights as much in a note to investors today.
While those new rules would certainly be bad for solar stocks, it’s unlikely that they will go through. Similar efforts have been made in the past with the California Public Utilities Commission shooting them down. These new rules likely face similar pushback from the agency, reports TheFly.com.
Here’s how today’s news is affecting each of the three solar stocks mentioned above today.
- Sunrun — Shares of RUN stock is down 5% with more than 3 million shares changing hands.
- SunPower — Over 2 million shares of SPWR stock have traded today and the stock is down 6.1%.
- Sunnova Energy — NOVA stock is falling 3.6% with roughly 850,000 shares having traded as of this writing.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.