Enphase Energy Downsizing: 350 Contractors & Employees Cut

• Enphase Energy Inc. and SunPower Corp. join the list of rooftop solar companies hit by rising borrowing costs and decreased demand. Enphase announced 10% workforce reduction and closure of two factories while SunPower shares drop after a breach in credit agreement. Restructuring and asset impairment charges up to $18 million.

Enphase Energy Inc. announced plans to reduce its workforce by 10% and close two factories in Wisconsin and Romania. This is due to a decrease in demand for rooftop solar products and higher inventory levels in Europe caused by higher borrowing rates. The company expects $16 million to $18 million restructuring and asset impairment charges. SunPower Corp. also experienced a drop in share prices from a breach in credit agreement announced earlier that day. These two companies join a list of rooftop solar companies to struggle in 2019 due to rising borrowing costs.

How is Rooftop Solar Struggling in 2019?

• Increased borrowing costs and restrictive credit conditions have made it difficult for rooftop solar companies to obtain the funding needed to meet their operational and expansion goals.
• Delays in government subsidies and tax credits have also impacted the industry, leading to an increase in financing cost for companies, making it hard to maintain profits.
• The lack of long-term planning and policies have created uncertainty in the market which has led to lower investments.
• Many countries are placing tariffs on imported solar products, which has resulted in higher expenses for companies looking to develop solar projects abroad.
• As the cost of rooftop solar installation continues to rise, homeowners and businesses are increasingly choosing other energy sources such as natural gas and wind as a more cost-effective option.
• The volatile cost of solar panels, coupled with changing consumer preferences, has made it more difficult for rooftop solar companies to compete in the market.