Here’s another interesting development for energy traders.
With over one million solar roofs installed since 2019, California leads the U.S. in solar power capacity thanks to policies that helped rooftop solar flourish.
But now, the Golden State’s once-promising solar market is in dire straits.
First:
A policy shift slashing the state’s rooftop solar incentive program has reduced rooftop solar sales by a mind-boggling 85% — ultimately forcing many solar companies to close shop or seek greener pastures beyond state borders.
Second:
Expensive panels have forced 63% of solar installers into a cash flow squeeze.
This explains some of the headlines you may have seen recently.
But while others see problems, we see opportunities here at Big Energy Profits.
That’s because the demand for traditional electricity sources will likely increase, and the outcome could mirror the California energy crisis of the early 2000s.
- When energy companies seized on loopholes and local shortages to charge prices hundreds of times higher than the national average.
- Suppliers withheld power from the state’s market and idled power plants to induce shortages for bigger profits. (They had incentives to keep plants down under the guise of planned maintenance or emergency repairs).
- Gas companies manipulated supplies and prices, driving up the cost of the main ingredient of electricity (which is exactly what we’re seeing right now with the Shale Scandal, where eight U.S. energy titans were implicated).
- Several interviews with market participants and regulators confirm the U.S. energy industry cashed in on and contributed to California’s energy crisis.
By the way, the pressure for the California Public Utilities Commission, or CPUC, to slash the Golden State’s solar panel incentives came from Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric.
That decision led to 17,000 solar job losses in California.
More layoffs and bankruptcies are likely this year. And the repercussions go beyond California’s 39.2 million people and $3.8 trillion economy.
The story is tricky but essentially boils down to this:
The 85% drop in rooftop solar sales lets energy companies benefit from growing demand since they can increase their bottom line amid tight supplies.
Now, some companies aren’t engaged in outright manipulation for corporate profits, but they’ll likely return substantial gains as energy demand grows.
For more insight, see our strategy for opportunities like these.
Stay blessed,