Bundle of investment news: solar panels, Hello Bungie

Пачка инвестновостей: солнечные панели, Halo и Bungie

In California, they want to break the business of solar panels. Sony buys Bungie to spite Microsoft.

Disclaimer: when we talk about, that something has grown, we mean a comparison with the same quarter a year earlier. Since all issuers are from the USA, then all results in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. We hope, Do you know, what to do.

«Out on bail, fresh out of jail»: Removal of credits for solar panels in California

One of the sunniest states in the US is preparing to deprive solar panel manufacturers of one of the most important drivers of their business. California Housing and Utilities Commission plans to remove one of the main benefits for consumers of solar energy for the largest utility companies in the state: Edison (NYSE: AXIS), PG&E (NYSE: PCG) и Sempra Energy (NYSE: WED). The essence of the changes is.

Saving. The commission wants to reduce the amount of payments for consumers of solar panels, which they receive, when their panels generate more power, what you need for home. Now users of California panels are paid money for, that they are selling excess electricity to the state. They pay at market rates of 25-30 cents per kilowatt-hour. The Commission proposes to reduce the amount of payments to 5 cents per kilowatt hour, it is 5-6 times lower, than now.

New charges. House with a system 6 kilowatt will pay 576 $ per year - the state will collect 8 $ per month per kilowatt from households, using solar panels. Although there will be exemptions for Indian reservations and poor households. However, they are unlikely to radically change the situation.

benefit 1. They are also going to introduce an additional benefit for households, who are planning to install a solar panel, - it will be possible to use it in the next 4 year and then use 10 years.

The bottom line is this: per kilowatt, the household will receive a cash deduction. The amount of the deduction will vary greatly by county., companies, serving the household, And, finally, financial well-being of a particular household. Edison in Southern California will have an exemption of 5,25 $ per kilowatt for the poor and 3,95 $ for everyone else. U PG&E The amount of the benefit will be 4,36 $ And 1,62 $ respectively.

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benefit 2. Another perk for those, who has solar panels: if they are within the next 4 years will switch to the new system, described above, then when installing batteries for existing energy storage systems, they will receive a one-time tax deduction in size 200 $ per kilowatt-hour of battery capacity. Given the average battery capacity for residential buildings, one household will be able to receive a deduction in the region of 2.6 thousand dollars.

benefit 3. All households, for which the panel works at least 15 years, should immediately switch to the new system. Poorer households can use their own panel 20 years, before switching to a new system of benefits and accounting for energy use.

New rules. All users of solar panels - legal entities and individuals - will pay for electricity at different rates at different times. Peak summer hours, for example, they will pay 48 cents per kilowatt-hour - and 19 cents on a winter morning.

There are a couple more suggestions., not directly related to benefits:

  1. Spend 600 million a year to connect ungreen and poor areas to solar energy.
  2. Allow homes and businesses to install solar power systems that are large enough - one and a half times their energy needs, - so that electric cars and housing and communal services enterprises can be recharged from them.

For private households, who use solar panels, the implementation of the listed proposals of the commission will be an unequivocal negative. If, with the existing system of benefits, solar panels pay for themselves for a household in years 10, then in the case of the described changes, the payback period can be doubled - up to 20 years. And this is without taking into account the installation of batteries for energy storage - if you buy them, then the payback period of solar panels runs the risk of stretching unrealistically.

Considering, what's in California 40% solar energy in residential buildings, the changes being discussed could have a huge impact on the entire US solar industry and on companies, who work in this sector.

Analysts at Bank of America believe, what if this proposal is implemented, then the rate of introduction of new solar stations will fall this year by 20%, and industry representatives believe, what's on everything 80%. Analysts at Wood Mackenzie believe, that due to possible changes, the demand for solar panels for residential buildings will be halved by 2024.

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In total, the current system is costing $3 billion in additional costs for California energy consumers.. Supporters of the abolition of the current system of benefits insist that, that in its current form it is similar to the subsidizing of richer households by the poor. It turns out, that poor households, who have no money on the panel, subsidize the rich, which have panels, and money, - so it turns out because, that the cost of purchasing energy at market prices, housing and communal services companies have to include in the general tariffs.

Solar panel usage rates in California by yearly income

More 250 one thousand dollars 12%
200—250 thousand dollars 8%
150—200 thousand dollars 14%
100—150 thousand dollars 24%
50—100 thousand dollars 29%
Less 50 one thousand dollars 13%


California reform is an unconditional negative for all issuers, installing panels in residential buildings. For example, for Sunrun (NASDAQ: RUN). The exorbitant price for issuers in this area is based on investors' expectations of "fast growth in the future". But if the proposals of the commission are implemented in their current form, then there will be no strong growth.

But for large housing and communal services companies like Edison and PG&E is very good. The reform makes private solar panels less profitable and will motivate people to connect to the grids of utilities companies or buy energy from energy retail businesses affiliated with them..

Initially, the members of the commission had to make a decision on the reform of benefits 27 January, but then it was moved to a meeting 10 February. Maybe, that by that time significant adjustments will have been made to the commission's reform project: after all, the "green" lobby has tremendous influence within the state, which influences the agenda at the regional level.

Benefits of the type existing in California are valid in 41 U.S. State. If in California, which serves as the flagship of clean energy within the United States, curtailed existing benefits, then this may lead to, that other states will begin to cancel them.

But even if other states don't follow California's lead, the damage from a decrease in demand for solar panels within this one state will still be significant enough for the entire business, related to solar panels for residential buildings.

"I will instead, instead of, instead of Halo »: Sony buys game studio Bungie

Japanese conglomerate Sony (NYSE: SONY) announced the purchase of game studio Bungie. The amount of the transaction is approximately 3.6 billion dollars. Considering, that Bungie once made such a hit, like Halo, and quite popular Destiny dilogy, it makes sense for the development of Sony's gaming business.

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This is all happening in the context of Microsoft's deal to buy gaming giant Activision Blizzard. (NASDAQ: ATVI): If the deal is closed, Microsoft will come close to hegemony in the gaming market, becoming the third in the world after Tencent and Sony, and will be able to put pressure on Sony, making Activision games exclusive to Xbox - to the detriment of Sony.

In my ATVI idea, I suggested, that Sony will try to jump over its head and buy ATVI instead of Microsoft. But the management of Sony decided, that "if you can't bathe horses in champagne, then at least we’ll sprinkle the cats with beer ”, and bought a company cheaper.

Will this work for Sony?, will be seen very soon: development of big games usually takes many years. But it's worth keeping in mind, that Bungie's 10-year partnership with ATVI ended prematurely in 2019, because the financial result of the Destiny duology did not impress ATVI. Therefore, not a fact, that Sony will be able to squeeze a positive result from the new acquisition.

It may very well be, that Sony chose Bungie because, which is very hopeful of repeating Microsoft's early success with this studio.

It won't be an exaggeration to say, that the popularity of the original Halo trilogy fueled Microsoft's gaming business: The first parts of Halo motivated players around the world to buy Xbox consoles, around which the entire ecosystem of the company's gaming business is now built. If it is true, then there are fears: did Sony miscalculate, having bought a studio, which may not repeat its former success, achieved with another publisher and under different circumstances?

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