When "Partnering" Is A Tell Tale Sign Of Bad Finances
It seems if you are in the solar industry almost each morning you will find another solar company is buying or partnering with another. To the untrained financial eye this may seem like a good thing. However those of us in the industry and have the financial foresight know better. Often times it is because one of the companies need to be "propped up". As with the solar companies the solar lease model specifically it is essentially a legal Ponzi scheme.Ted "The Wolf" Strzelecki
Take a look at how many publicly traded solar companies there are. Now detract the ones that majority of their business is solar leasing, now see how many are profitable. Answer, none. This is why much like banks in 09 and 2010 were "merging". They spin it like it is a great thing and can now offer more blah blah blah. The truth is when companies release a PR stating they are receiving funding it is never a good sign. This money has to be paid back....with interest. Companies that are habitually losing money further overextending themselves leads to chaos. This C.F.O. sees this clearly and I know others do as well.
I believe the end of solar leasing is coming. Financial institutions that finance solar are not invincible in this, but they also usually only finance to people with employment length, a decent FICO score, and fiscally responsible homeowners. The lease which is aimed at people saving pennies a month, towards the less affluent, and tied to a lien or UCC filing will be left holding the bag when people walk away from their homes again in the next real estate downfall. This is because the bank will have first position on the house and the liens for the solar lease are not FHA insured. Financial backers can only sustain so much leveraged debt for so long.
The residential solar leasing market will feel the housing crash when it comes far worse than the FHA banks....watch!
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