I am new to this board and REALLy like what I am learning. Read through the knowledgebase twice and have started moving my portfolio away from story stocks to those that are more in-line with Saul’s investing philosophy (which I assume will fare better in this current market)

Quick Question:
What is happening to SEDG? I can’t seem to find any news to explain why it’s stock has been cut in half in recent months. Is it concern over solar stocks in general…general market conditions…?

Anyone have a sense about what is happening here?


PS - went into a factory store in South Africa and asked salesmen what is their top selling shoe brand right now…Sketchers (Haven’t bought a pair yet, but bought the stock :slight_smile:

1 Like


I’m certainly no Saul or Neil or many others whose contributions to this board make it what it is today, but believe I can comment accurately on the thinking around the decline in SEDG.

First and foremost, alternative energy stocks tend to move in the same direction as oil prices. If oil prices are down, solar stocks move down and vice versa. The presumption here is that lower oil costs will dilute investments into alternatives. I, for one, don’t necessarily buy that argument.

Additionally, we are in the midst of most sectors (if not all) doing rather poorly.

Add those two together and you get the fall in SEDG.

I don’t own SEDG and none of this gives any actionable advice. However, I believe the above to be considered an accurate representation of what is taking place with alternative energy stocks. Or almost any energy stock for that matter.

Take care,


Anyone have a sense about what is happening here? - Justin

There’s a battle brewing in California regarding “net metering”. In brief, net metering is the construct that allows homes equipped with solar panels to sell energy into the grid. Net metering is bread and butter for SolarCity, and, by extension, SEDG (SEDG’s claim to fame is its vendor status with SolarCity).

Here’s an article that provides the main points:

California Utilities Release New Plans to Replace Net Metering: Conflict to Come?

California’s two biggest utilities have just fired the first shots in a battle over the state’s net metering future by proposing a system that would pay future solar-equipped customers less for the green electricity they feed back to the grid, as well as imposing monthly charges for the utility power they consume.

It’s a big deal for SolarCity/SEDG. SolarCity installs rooftop solar systems under power purchase agreements. That is, the homeowner doesn’t own the system, SolarCity does. SolarCity offered its agreements assuming a certain rate of return from the utilities. Eliminating net metering would throw a monkey wrench into the established order.

For reference, when Arizona eliminated net metering, rooftop solar installations dropped by 90%. On the other hand, more and more states are adopting net-metering plans, so it’s anyone’s guess how all this will play out.

I’m not a big fan of SolarCity’s business model. BUT, I believe the solar sector has achieved critical mass in that the industry employs more people than California’s utility industry, and many more employees than the coal industry. Battles will rage, large sums of money will be doled out to legislators, homeowners will have their say. In the end, solar will prevail and grow. As for SolarCity and its vendors? I dunno.


The Net metering battle worries me a lot from a Solarcity point of view. Less so for SEDG but still to a degree.

Thanks guys that is helpful insight.


There’s a battle brewing in California regarding “net metering”. In brief, net metering is the construct that allows homes equipped with solar panels to sell energy into the grid.

We have net metering here in Austin and here’s how it works:

The power from your solar panels belongs to the utility and it must pass through the special PV utility meter before being used. Your home electric bill is based on “whole house consumption” - the amount of power you use regardless of whether the power came off the grid or through the solar PV utility meter. All fees, etc. are based on that amount and your “gross” bill is calculated. The utility pays $00.113/KWH for power generated by the solar PV system. This amount is deducted from gross bill and sales taxes are applied to the remainder to give the “net owed”.

Another way of looking at it is that you’re effectively buying a variable annuity whose value is based on sunny days. B^)

Last month 565KWH for a credit of $63.85. My “whole house consumption” was 1581 KWH. Final bill was $144.49. Over the past year, solar has provided 47.4% of our power needs – and we keep our home relative cool (around 75) during summer.

I think you can put up solar and use it directly (without the solar PV utility meter) only if power it produces is kept entirely separate from the utility’s power. I can see where, in some instances, a person might put up solar panels, dump the power into a whole-house battery and then use that power to (solely) run a HVAC system. A lot of things would have to align in order to make that financially viable, but it could happen.