Solarcity (SCTY) Q1 2016 Earnings Call

Solarcity (SCTY) CEO Lyndon Rive says they finally have more regulatory clarity 

“We had a bunch of headwinds that hit us all at the same time and I’d like to walk them through.  We had a bunch of pending regulatory outcomes in California, Massachusetts, and New Hampshire. These are all open items in Q1 that now have been resolved and actually look really good for the solar industry. We now have long-term visibility in those states and in fact, we’ve never had this type of long-term clarity for some time. So though it was rocky in Q1, we now have that clarity.”

Increased prices which may have pulled sales forward into the quarter

“We also increased pricing in January and with the increase in pricing, it’s pulled in our sales cycle. So typically we have about a 15 day to 20 day sales cycle for residential. And with our customers knowing that we’re going to increase pricing in January, they came in and made the decision earlier. What happened to us then is that, starting the year, we essentially flushed our pipeline and now we have to build a new pipeline.”

Solarcity (SCTY) Chief Technology Officer Peter Rive said they are increasingly trying to work together with the incumbent utilities

“Some great progress has been made towards a future vision for how rooftop solar can be compensated and integrated into utility operations. Specifically a group of utilities and solar companies jointly proposed a long-term solution that supports net metering being in place until 2020, it removes uncertainty for customers on grandfathering and recognizes the value that solar provides to the distribution system.”

Trying to figure out how solar can allow for expanded business opportunities amongst many constituents 

“The post-2020 framework is basically to value the exported energy at the energy price plus the value to the distribution system plus the environmental benefits. This approach should work for us and is in line with our goal to include storage with most of our solar systems around that timeframe. Additionally a big part of the discussions we’re having with regulators and utilities surround additional business model opportunities created by customer-sited energy resources. And to that end, we’re excited about some product releases that address utility infrastructure needs which is more than a $50 billion a year market.”

Solarcity (SCTY) CFO Tanguay Serra said institutional investors are interested in solar bonds as an asset class

“The thing that’s clear to us having done the work here is that this market is real, exists and there’s market participants that are very, very active in it. They typically not had exposure to the residential solar assets, but invested in a number of different infrastructure classes. So I think this market as I discussed is reasonably big. Since we announced this, we’ve had a number of inbounds. But at this stage, we’re not willing to make any commitments for the rest of the year, but it’s clearly an asset class that had interest from some of the largest most sophisticated institutional investors on the planet.”

Seeing cost deflation across their materials they purchase

“A couple of things on what we’re seeing, how to reduce costs because today we’re seeing the ASPs of module prices decline, we’re seeing the same happening with inverters and then there’s a couple of pretty big breakthroughs in the mounting hardware on the residential side as well as on the commercial side that will further drive down costs and give us a lot of confidence for our long-term cost targets.”

Solarcity (SCTY) CFO Tanguay Serra highlighted being the low cost operator as a competitive advantage

“I’ve got massive respect for all our competitors. The one thing I would say is that our key clear differentiators are cost structure, our cost structure is just better than everybody else’s, and we’re optimally selling is the commodity electron. So we’re clearly in a better place there. The other big differentiator I think is all the investments that we’re making under Pete’s leadership on the grid services, the agreement that was – come up between us and some of our peers in one of the Eastern states, the State of New York, I think it’s a blueprint for how the industry is going to go from forward. So we’ve got clear technological leadership, we own our mounting hardware and destiny around that, we have clear EBITDA to capital and we’re ultimately building what is our best-in-class power plants for the lowest cost, that feels like pretty strong differentiators.”

JA Solar 1Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“It’s a real top time for the solar industry. We are encouraged by our solid performance in the first quarter as shipments exceeded the high end of our previous guidance, and that we achieved positive gross margin”

“Shipments for the quarter were 442.7 megawatt, above the high end of our previous guidance of 430 megawatt. This was driven by a stronger performance across key markets, most notably in Japan…We had a strong quarter in Japan in Q1. In the past several quarters, we have been working diligently to deepen our process in the market and have built a solid position there. This allowed us to benefit immensely from an increased efficiency activity in the quarter. In fact, our Japan shipments in Q1 alone were greater than our shipment there for the whole of our 2012. Going forward, we will continue to work closely with our partners in Japan to capitalize on their growing demand for solar energy there.”

“Gross margin was a positive 6% for the quarter, which was encouraging.”

“Europe accounted for 27 of our total shipment in this quarter”

“In Q1, the geographic breakdown of the shipments including modules, cells and tolling was approximately 39% in China, 33.6% to APAC, 26.8% to Europe and the rest of the world accounted for only 0.6%”

Jinko Solar 4Q12 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$JKS Earnings Call Notes

“I think it’s a good question because today in China the solar industry I think is only in the consolidation but also is a faced challenge and the over capacity as faced challenged by the market demand and also inside China you can see one of the competitive and Suntech I think you can see that is going out restructuring, so all these I think definitely were effect to the whole industry. I think the government were now in the much, the new government has said I think they are aware of the situation right now. I think the government were to take I think two steps, I think one step is to increase the domestic demand to streamline the policy, I think also to possible to increase the potential demand especially like two steps I think subsidized in the eastern area of China as all these policy I think it will increase the demand. Second also I think the government has put more attention to is to restructuring consolidation in these industry the own capacity issue. So as you can see that of course today every solar company has faced banking in think the lower facility typing but we do think you know Jinko is one of them the banking I think if you like to priority to support as you can see we just got 60 megawatts of solar projects (inaudible) 360 million from China Development Bank.”

“Let me add that in the short time obviously all the industry is impacted by these bad news for the industry. Whoever we were expecting these consolidation and in the long term it’s a good news for the survival we strongly believe that Jinko solar is one of the company’s who will survive”