The overabundance of the solar panel is an effect of trump price inhibition: SunPower

(Reuters) – The sharp drop in solar module prices over the past few weeks has almost neutralized the effect of the 30% tariff imposed by the Trump administration on imported panels, the company said on Monday. managing director of a major American company.

While lower prices reduce profit margins manufacturers, for solar system buyers, who faced higher prices since the tariffs came into effect in February.

"If you are building a large power plant, your price certainly has come back at least halfway to what it was before the price, if not all the time," Tom Werner, CEO of SunPower Corp. SPWR.O ), said in an interview as a result of the announcement of the financial results of the company in the second quarter. "Solar module prices are down about 12% globally since China announced June 1 changes in its solar energy incentives that led to an overabundance panels to be installed in China. , the largest solar market in the world.

SunPower is both a solar panel manufacturer and an installer of solar energy systems. The company based in San Jose, California, manufactures its products mainly in the Philippines and Mexico and requests an exclusion of US tariffs.

SunPower manufactures high-yield, high-price panels, and Werner told badysts at a conference call that the company "was responding" to price cuts and would not allow its premium to grow.

The company is buying SolarWorld Americas, its competitor, by developing its domestic production in Oregon to stem the impact of tariffs.

Lower prices "make domestic manufacturing much more difficult," said Werner, adding that SunPower was committed to closing its deal to acquire SolarWorld.

"We will have to scale up to be competitive," he said.

SunPower plans to spend $ 51 million on rates in the second half of this year, an amount the company would prefer to invest in its next-generation technology and increase its US output, Werner said during a conference call with badysts.

SunPower reported a lower than expected loss and operating revenues in the second quarter that exceeded estimates due to the strength of its solar rooftop activities and its controls. costs. The company also said it would begin manufacturing its next-generation technology later this year.

SunPower shares were up 4.8% at $ 7.22 after hours of opening.