Risk Factors of Energy Industry

RISK FACTORS ASSOCIATED 1) Existing electric gain industry regulations, and changes to regulations, may present technical, regulative and economic barriers to the purchase and put on of solar life force systems that may portentously edit demand for your solar energy systems. 2) The expiration, excretory product or reduction of these rebates, credits and incentives would illly impact your line. ) If the Internal Revenue answer or the Treasury Department makes supernumerary determinations that the fair market value of your solar energy systems is visiblely low your than what you pick up claimed, you may have to pay significant amounts to your enthr iodinment caudexs or to your fund investors and much(prenominal) determinations could have a veridical uncomely effect on your bloodline, monetary condition and prospects. 4) Your baron to provide solar energy systems to guests on an economically practicable basis depends on your ability to pay these systems with fu nd investors who require particular revenue and former(a) benefits. ) You need to enter into extra substantial financing arrangements to facilitate your customers rile to your solar energy systems, and if this financing is non available to you on acceptable terms, if and when needed, your ability to continue to grow your patronage would be materially adversely impacted. 6) A material drop in the retail worth of improvement-generated electricity or electricity from former(a) sources would harm your backing, financial condition and results of operations. 7) A material drop in the retail determine of utility-generated electricity would particularly adversely impact your ability to attract commercial customers. ) Rising interest evaluate could adversely impact your phone line. 9) You must have guaranteed a minimum return to be received by an investor in certain of your investment funds funds and could be adversely moved(p) if you atomic number 18 required to make every e arningss under those guarantees. 10) In your direct pass- finished investment funds, there is a one-time reset of the aim payments, and you may be obligated, in federation with the resetting of the lease payments at true up, to reward lease prepayments or to contribute supererogatory assets to the extent the system sizes, woos, and timing ar non consistent with the initial lease payment model. 1) You are not currently regulated as a utility under applicable law, but you may be overt to regulation as a utility in the forthcoming. 12) A failure to hire and retain a sufficient number of employees in severalize functions would constrain your growth and your ability to incidentally complete your customers come acrosss. 13) It is difficult to evaluate your business and prospects due to your limited operating history. 14) If you experience buttones then it will be difficult for you to achieve or nurse profitability in the future. 5) You face competition from both tradit ional energy companies and renewable energy companies. 16) If you fail to remediate deficiencies in your control environment or are otiose to implement and maintain telling internal control over financial reporting in the future, the accuracy and timeliness of your financial reporting may be adversely affected. 17) Projects for your significant commercial or government customers involve concentrated project risks that may cause significant changes in your financial results. 8) You depend on a limited number of suppliers of solar panels and other system components to adequately meet expect demand for your solar energy systems. every shortage, delay or component price change from these suppliers could result in gross revenue and facility delays, cancellations and loss of market share. 19) Your business benefits from the declining cost of solar panels, and your financial results would be harmed if this trend reversed or did not continue. 0) You act as the licensed frequent contrac tor for your customers and are subject to risks associated with construction, cost overruns, delays, regulatory compliance and other contingencies, any of which could have a material adverse effect on your business and results of operations. 21) configuration with occupational safety and health requirements and opera hat practices can be costly, and noncompliance with much(prenominal) requirements may result in potentially significant monetary penalties, operational delays and adverse publicity. 2) Problems with product quality or doing may cause you to incur stock warrant expenses and performance guarantee expenses, may begin the residual value of your solar energy systems and may damage your market write up and cause your financial results to decline. 23) Product indebtedness claims against you could result in adverse publicity and potentially significant monetary damages. 24) disparage to your brand and reputation would harm your business and results of operations. 25) I f you fail to manage your recent and future growth effectively, you may be unable to execute your business plan, aintain high levels of customer service or adequately predict competitive challenges. 26) You may not be advantageful in leveraging your customer base to grow your business through sales of other energy products and services. 27) Your growth depends in part on the success of your strategical relationships with third parties. 28) The loss of one or more members of your senior oversight or key employees may adversely affect your ability to implement your strategy. 29) Your business may be harmed if you fail to powerful protect your reason property. 0) The production and installation of solar energy systems depends heavily on suitable meteorological conditions. If meteorological conditions are unexpectedly unfavorable, the electricity production from your solar energy systems may be substantially below your expectations and your ability to timely position new systems may be adversely impacted. 31) You typically bear the risk of loss and the cost of maintenance and repair on solar systems that are owned or leased by your fund investors. 2) each unauthorized disclosure or larceny of personal information you gather, store and use could harm your reputation and subject you to claims or litigation. 33) In the long term if you define to expand your internationalistic activities, which will subject you to a number of risks. Your long-term strategic plans include international expansion, and you intend to move your solar energy products and services in international markets. Risks inherent to international operations include the following ? inability to discipline successfully with third parties with local expertise to co-develop international projects ? multiple, conflicting and changing laws and regulations, including exportation and import restrictions, tax laws and regulations, environmental regulations, crowd laws and other governme nt requirements, approvals, permits and licenses ? changes in usual economic and governmental conditions in the countries where you operate, including changes in government incentives relating to power generation and solar electricity ? political and economic instability, including wars, acts of terrorism, political unrest, boycotts, curtailments of trade and other business restrictions ? difficulties and cost in recruiting and retaining individuals skilled in international business operations ? international business practices that may conflict with Indian custom or legal requirements ? financial risks, such as longer sales and payment cycles and greater difficulty collecting accounts receivable ? fluctuations in currency exchange rates relative to the Indian Rupee and ? inability to obtain, maintain or enforce intellectual property rights, including inability to apply for or register material trademarks in unlike countries.