Residential Solar Installers Face a Rocky Future
The past week hasn't been good to U.S. residential solar stocks. Vivint Solar (NYSE: VSLR) and Sunrun (NASDAQ: RUN) both reported earnings that left a lot to be desired from an investment standpoint. The number of installations were strong and low financing costs are helping business, but installation costs continue to rise at an unsustainable level.
The low-hanging fruit in the residential solar industry has been picked already, and now installers are spending more and more to reach each incremental customer, which isn't a sustainable model long-term. Dig into the numbers and there are some very concerning trends.
Image source: Getty Images.
Source Fool.com
