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SolarCity ( SCTY ) stock flamed Wednesday, leading shares of rivals Vivint Solar ( VSLR ) and Sunrun ( RUN ), on a San Francisco, Calif., mandate requiring that solar panels be installed on most new construction under 10 stories tall. SolarCity stock rose 7.8% Wednesday. It was up as much as 13%. Shares of Sunrun and Vivint Solar rose a respective 3.6% and 1%. Introduced by San Francisco County Supervisor Scott Wiener, the ordinance requires solar panels or a solar-powered heating system be installed on new residential construction shorter than 10 stories and on new commercial buildings smaller than 2,000 square feet. The SF Board passed the measure unanimously on Tuesday. It goes into effect Jan. 1. Current California law already requires 15% of certain new construction to be “solar ready,” meaning it’s in an unshaded area. Wiener’s legislation builds onto San Francisco’s already burgeoning green efforts. In 2004, the city introduced a choice aggregation program dubbed CleanPowerSF. Sunrun Faces Four New Class-Action Lawsuits Over IPO In other solar news, Sunrun became the subject of four new class-action lawsuits on Tuesday alleging the No. 2 residential installer by market value “negligently prepared” its IPO, according to a claim by the Shareholders Association. The lawsuits stem, in part, from Nevada regulators’ decision in December to cut net-metering payments to solar customers. More recently, the Public Utilities Commission opted to not grandfather in existing customers under the old rates. New York, N.Y., law firm Levi & Korinsky alleges Sunrun’s IPO contained materially false or misleading statements related to its historical operating costs “by not disclosing the fixed grid costs being borne for it by public utilities where net metering-programs were being employed.” The claim further alleges Sunrun is charging well above wholesale rates for electricity sold to net-metering customers, didn’t have customers dispersed across 15 states and said “Sunrun’s ability to continue convincing customers to sign 20-year contracts was in jeopardy.” Sunrun went public in August 2015, opening below its 14 IPO price. Shares closed Wednesday at 7.27, 48% off Sunrun’s initial price. Scalper1 News
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