Potential Valuation Problems For SolarCity Commercial Paper
http://seekingalpha.com/article/1816492?source=iphoneportfolioapp_copy (added 11/7)
For some time I’ve hounded Governor Cuomo, okay, a few times on twitter, about New York’s dismal record for promoting solar, and astoundingly he has shot back with his own challenge to the renewable energy sector – make your projects worthy of investment. Now, I take this tone for two reasons, first, the announce of a Green Bank that will spur investments in the market, and secondly, the secondary market where these energy investment will be sold as bundles. Did you get scared too?
Whenever I hear that some group of loans will be packed and sold on a secondary market I think of the housing market, and there are now calls to disband the two GSE that performed the same function for real estate that the Green Bank will perform for the Renewable Energy market. not to mention that this plan is proposed by Cuomo, a former head of HUD.
What’s unfortunate is that renewable energy is the hot potato subject in politics. The fossil-fuel lobby is so entrenched in Washington, everyone has to mention Soyndra, even though its a poor example, its still the standard of failure for the Solar industry. Forget that China was generously supporting solar their industry. Today, we marvel at their resiliency, as if we really didn’t want to impose tariffs. That matter has more to do with where our government funding will go, either to start ups as the Green Bank, or towards a local push directed at municipalities and utilities. I see a fractured war, too many fronts.
I don’t want to write too much until I read the entire proposal, but I have some reservations, namely the variables that affect energy as an investment. Though PPA are great, is that where the bulk of investing will go? What about small start ups, installers, integrators, and contractors that what to diversify? Of course I’ll re-writing this. Okay, I’ll just make corrections beneath this. Integrity and whatnot.