Distributed photo voltaic and storage firm SunPower ended Q2 with good points and exceeded its earlier Q2 income steering. The efficiency supplied one other indication that lots of the largest gamers within the residential photo voltaic business have begun bouncing again from the coronavirus downturn that hamstrung enterprise this spring.
Regardless of expectations for general losses in 2020 — at the very least earlier than pulling its annual steering in March — SunPower logged GAAP web revenue at $19.four million for Q2, up from losses of $1.four million within the earlier quarter (revenue was $121.5 in Q2 2019). SunPower did report non-GAAP losses, which the corporate largely attributed to a long-term polysilicon contract that can stay with its manufacturing arm, Maxeon, when the 2 firms cut up.
Although SunPower’s residential installs fell by 20 megawatts from Q1 to Q2 2020, its 51 megawatts in Q2 nonetheless put it forward of competitor Sunnova, which reported about 48 megawatts deployed in Q2, and Vivint, which added 43.6 megawatts in Q2.
CEO Tom Werner attributed the comparatively resilient quarter to elevated demand for residential electrical energy and the corporate’s pivot to on-line gross sales when COVID-19 and corresponding shutdowns started spreading within the U.S. Although in-person gross sales have since resumed in some areas, Werner stated that the environment friendly on-line mannequin “will stick longterm” for a good portion of SunPower’s gross sales.
Final week Sunnova additionally reported a constructive second quarter and stated it will develop clients 40 p.c in each of the following two years. Vivint, which Sunrun introduced it will purchase final month, reported earnings Wednesday displaying that it shrank losses over Q1 and installations fell by greater than 10 p.c, a determine a lot decrease than the drop within the residential market analysts forecast in June. Sunrun, the nation’s high installer, has but to report Q2 outcomes.
Tesla was anticipated to be maybe probably the most adaptable to the arrest of in-person gross sales due to its online-only mannequin. However in July, the automaker reported its weakest photo voltaic quarter thus far.
On a Wednesday earnings name, SunPower hinted at an reverse development. Norm Taffe, the corporate’s vp of residential, stated the leads SunPower sells to its community of sellers crossed an all-time excessive in July, and gross sales continued to hover there by the month.
“The final month on the entrance finish of the funnel is setting all-time data for us,” stated Taffe on the decision.
SunPower reacted early to the financial impacts of the coronavirus, slashing govt salaries, reducing work hours and shutting down all of its manufacturing websites throughout the globe.
Regardless of the turnaround from a uneven gross sales panorama in March and April, SunPower didn’t present steering for full 12 months 2020. For Q3, the photo voltaic supplier expects to put in between 95 and 120 megawatts, which might put it close to deployment within the final quarter of 2019, normally the biggest quarter by quantity. SunPower expects to drop again to losses within the coming quarter, because it spins out Maxeon. On the finish of this month, when Maxeon begins public buying and selling, SunPower shareholders will obtain eight shares of Maxeon for every share of SunPower.
As SunPower sends off a part of its enterprise, competitor Sunrun is ramping as much as soak up Vivint, the quantity two residential installer within the U.S. by market share. In response, Werner stated SunPower will double down in areas the place it excels, like new house photo voltaic, customized merchandise and its storage enterprise.
“The online affect to us is we’re going to be extra aggressive in areas the place we’ve differential strengths,” Werner instructed Greentech Media.
SunPower launched its personal residential storage product in California in June. Whereas it has pursued a “cautious ramp” in comparison with the aggressive storage imaginative and prescient of rivals like Sunrun, it’s now together with batteries on about 30 p.c of methods within the state; its business connect charges are nearer to 50 p.c. SunPower plans to roll its residential system out to different geographies by the tip of the 12 months.