NEW YORK, NY / ACCESSWIRE / December 17, 2018 / Shares of solar power companies Sunrun and SunPower were both in the red on Friday as Wall Street reacted to the impacts of President Trump’s tariffs on solar panels. Shares of Sunrun may also have been impacted by the news that the Company is being investigated for violations of federal securities law.
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Sunrun Inc. shares closed down 8.70% on Friday on about 1.7 million shares traded. The largest provider of residential solar, storage and energy services in the U.S. is being investigated for violations of federal securities law by Block & Leviton LLP, a securities litigation firm representing investors nationwide. The violation is with regards to non-disclosure of a corporate fraud investigation started in June 2017. On June 5, 2017, the Federal Bureau of Investigation opened a corporate fraud investigation into Sunrun at the request of the Justice Department. As per the initial search of the SEC filings of the Company, the investigation was not disclosed to the investors. In other negative news, according to a new report from the Solar Energy Industry Association and Wood Mackenzie Power & Renewables, an estimated $8 billion worth of utility-scale projects were canceled or put on hold for the five-year period that ends in 2022. The report also said that 9,000 jobs were either lost or not added because of the tariffs. It was in November that Sunrun saw gains of almost 20% as Wall Street digested a new report that warned about climate change. On November 23rd, a National Climate Assessment (NCA) report was released that issued warnings about the potential impacts of global warming which included wildfires, coastal flooding, and outbreaks of disease.
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SunPower Corporation shares were down 3.17% on about 1.4 million shares traded on Friday. There was no remarkable news from the company but it was among other solar power companies to see losses. The third quarter showed that installations of new solar power capacity in the United States had slowed down to its weakest rate since the year 2015 as Trump administration has put tariffs on imported panels. Investment bank Macquarie Capital has said however that the slowdown would recover temporarily and has remarked, "We expect solar installation will only continue to ramp up. I think there will be a load of solar being built in this country, because it is cost competitive and relatively easier to develop than other technologies. And the cost is going to keep going down.” SunPower announced not too long ago that it has reached an agreement with Cabot Corp. CBT to install a 1.12-megawatt (MW) solar project coupled with 940 kilowatt hours (Kwh) of integrated energy storage system at Cabot's Business and Technology Center in Billerica, MA. The construction of the project is expected to start next summer.
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