Shares of solar companies, including Sunrun Inc (NASDAQ:RUN), are trading lower Tuesday following the California Public Utilities Commission's proposal to cut rooftop solar incentives.
The California Public Utilities Commission released a proposal Monday that would update the rules regarding how rooftop solar systems owners in California are compensated.
Under the proposal, California residents with new solar installations could see a discounted rate for power sold into the grid and a monthly utility charge to cover the cost of grid maintenance.
The proposal aims to encourage the solar industry to accelerate battery storage technology so excess power can be held in reserve instead of sold.
The California Public Utilities Commission is scheduled to vote on the proposal on Jan. 27.
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Sunrun is engaged in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States.
RUN Price Action: Sunrun has traded as high as $100.93 over a 52-week period. It's making new 52-week lows Tuesday.
The stock was down 14.20% at $36.15 at time of publication.
Photo: ulleo from Pixabay.
