(Bloomberg) -- Sunrun Inc. shares fell as much as 3.4% after the residential solar provider said late Wednesday it was ending its sales partnership with Costco Wholesale Corp. after the companies failed to reach mutually agreeable terms.
The solar company said Costco didn’t like the fact that its subscription model provides less upfront revenue under standard accounting models. Costco didn’t immediately reply to a request for comment.
The tie-up, in place for more than a decade, is set to conclude by the end of the year. Sunrun said the change won’t have a material impact on the volume or cash generation projections it made in its latest quarterly results. Costco represented less than 10% of Sunrun’s total sales volume in the first half of the year, the company said in a statement.
It’s the latest headache in a rooftop solar industry that’s been stung by a slowdown in sales as higher interest rates have it more expensive for customers to to buy panels. Adding to the woes, California, the biggest residential solar market, slashed incentives for home systems last year. Residential solar installations are expected to slump 19% this year, according to the Solar Energy Industries Association trade group.
--With assistance from Jaewon Kang.
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