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Distributed generation storage and energy services provider SunPower Corporation posted a net income of $139 million for the third quarter (Q3) of 2022, compared with a loss of $84.4 million year-over-year (YoY).
The company’s turnaround was primarily driven by 23,100 new customers in Q3, a 63% jump YoY.
For the July-September quarter, the company recorded revenues of $470 million, up 67% YoY. The revenue surge was fuelled by customers increasingly adopting products with higher sun-protection factor and panel system price increases.
The company welcomed the passage of the Inflation Reduction Act (IRA). It said that the Act would significantly expand the economically serviceable market by around 40-50 million households, with projections for 7.3 GW incrementally installed residential solar between 2023-27.
SunPower expects that the IRA will boost sales. The tax credit provided under the Act alone positions the industry to extend strong demand trends, the company said.
“We expect customer interest in leasing to tick up as rules are clarified; SunPower Financial earns roughly similar origination fees for leases vs. loans, incentivizing prioritization of the customer’s best interest,” the company said in its presentation.
With average national residential power utility bills rising 14.3% in August YoY, clubbed with increased fuel and capital costs, the demand for SunPower’s residential solutions remained higher.
SunPower said that operating leverage from customer growth reduced customer acquisition costs, increasing the company’s EBITDA for Q3 by 25% to $33 million.
In Q3, SunPower collaborated with General Motors (GM), wherein the former will be the exclusive solar provider for GM customers and a preferred installation partner for electric vehicle chargers.
GM targets reaching over 1 million units of annual EV capacity in North America in 2025. The collaboration, SunPower said, will design and develop bi-directional EV charging equipment with its expertise in energy and GM’s skills in EVs.
During Q3, SunPower’s SunVault portfolio grew by adding two new battery storage configurations that offered increased energy density and maximized space within the battery box.
SunPower’s customer base increased by 40% YoY with the addition of 16,500 new customers in Q1 2022.
Earlier this year, global oil and gas major TotalEnergies inked a definitive pact with SunPower to acquire the latter’s commercial and industrial (C&I) solutions business for $250 million, including $60 million of earn-out.