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spk01: good afternoon ladies and gentlemen and thank you for your patience the conference will begin shortly once again thank you for your patience the conference will begin shortly Thank you. Thank you. Thank you. Thank you. Thank you. Good afternoon, ladies and gentlemen, and welcome to the iSun Energy fourth quarter and full year 2021 financial results. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Tyler Barnes, Head of Investor Relations. Sir, the floor is yours.
spk05: Thank you and good afternoon. We are pleased to welcome you to ISUN's conference call where we will discuss financial and operating results for the fourth quarter and full year 2021. Jeffrey Peck, Chairman and Chief Executive Officer, will provide an update on the deployment of ISUN's recently completed solar platform and illustrate how the platform both addresses opportunities within the solar marketplace and creates value for shareholders. John Sullivan, Chief Financial Officer, will provide an overview of the fourth quarter and full year 2021 financial results and operating performance. After our prepared remarks today, we will open the lines to address any of your questions. As a reminder, the earnings release and updated investor presentation, which can be found on ISOM's website, include financial disclosures and reconciliations for non-GAAP financial measures that should help you analyze results. Comments and answers to questions during the call will include forward-looking statements that refer to management's expectations for future predictions. These statements are made as of the date of this call, and management is under no obligation to update these forward-looking statements in the future. They are subject to risks and uncertainties that could cause actual results to differ from management's expectations. With that, I will now turn it over to our CEO, Jeff Peck.
spk04: Thank you, Tyler. Good afternoon, everyone. It is my pleasure to be speaking with all of you today, and I'm really excited about the progress ISUN made in 2021 as we execute on our mission to accelerate the adoption of solar energy. Between climate-related and geopolitical events, we are reminded daily of the importance of our work and of our industry, and we have never been more inspired to fulfill our mission or prouder of our progress. 2021 was a transformational year for ISUN, and I'd like to thank our entire team for their commitment, dedication, and focus on executing on our strategies. Despite COVID-related industry headwinds, we delivered on our promises. Specifically, we executed on our growth strategy. We transformed ISUN into a solar company uniquely capable of accelerating the adoption of clean energy across all industry segments. We did this by combining the strength of our traditional CNI business with an innovative solar carport and EV infrastructure company, then adding a world-class team providing solar development design and engineering services to support utility-scale project origination and EPC. And finally, adding a mission-driven residential solar company to ISON's now full suite of services. While building a solar company ready to meet and accelerate the demand of the solar industry in each segment, we remain focused on our promise to grow revenues. In 2021, ISON is able to exceed our guidance by more than doubling our 2020 revenues. We also continue to serve our customers in growing our backlog. As we closed out 2021, we accumulated a backlog of contracted projects and generated new demand that supports our 2022 guidance and beyond. Additionally, our newly acquired solar development and engineering team has contracted with several solar asset owners to develop and engineer solar projects. In just six months, we have built a pipeline of 550 megawatts of projects that we are moving through the development process and towards construction. These projects range in size from 500 kilowatts to over 100 megawatts. As these projects achieve notice to proceed, they will be added to our EPC backlog. This helps deliver on our promise to grow our backlog, expand geographically, as well as providing ISUN opportunities for asset ownership. With our expansion of the EV infrastructure, we delivered on our promise to accelerate the adoption of EVs. I believe when we look back, 2021 will be the year when the transition to electric vehicles took hold. The debate is over. The electrification of our auto fleet is upon us. The need to expand the infrastructure and improve the customer experience is happening now. In Q4 2021, ISM signed a multi-year contract to design and provide 1,780 solar carports throughout the United States. This transition to electric vehicles will accelerate residential and commercial adoption of solar energy. As consumers transition to electric vehicles, they will often charge their vehicles at home or work. residential and commercial customers will see their election bills dramatically increase. This will drive demand in both areas as consumers look to lower and future-proof against rising electricity rates. Our residential and small commercial brand, Suncommon, has seen increasing customer demand, which we believe will accelerate in the coming years. Suncommon was built to scale with their digital marketing, low customer acquisition costs, and people-first customer service. Suncom will help us meet and accelerate the growing demand of residential and commercial customers. Another quality of Suncom that we admired was their status as a B Corp and their commitment to values-driven business practices. With the help of their team, ISUN has engaged with our stakeholders to begin the process of formalizing our values in a comprehensive ESG policy. ISUN has made substantial progress throughout 2021 in executing on our growth strategy through acquisitions. During the acquisition process, we placed a premium on leaders that were excellent operators and who shared our values and commitment to serving the communities in which we operate. I'd like to take a moment and recognize the leadership team we've assembled. We are excited to welcome Daniel Deuce, president of ISM Utility, and James Moore, president of ISM Residential, to the team. Daniel previously led the U.S. renewables business for the $100 billion Adani Group, the largest solar company in the world in terms of operating and contracting solar assets. James co-founded Suncommon, serving as co-president, growing Suncommon to one of the largest residential solar companies in the Northeast. We appreciate the opportunity to learn from their years of experience, and together with Executive Vice President of Commercial and Industrial Kit Myrick, our team will have an unparalleled wealth of experience in solar and the leadership required to execute on the solar industry's generational opportunity. The fourth quarter of 2021 provided our first opportunity to see our team work together in a collaborative manner, and we are thrilled with the results. We are excited to grow these synergies and drive efficiencies through our development, design, and engineering services, our supply chain, and our proven installation expertise to new and existing customers, and to see what we can accomplish with our platform in a full calendar year. ISO's mission is to accelerate the adoption of proven technological innovations capable of improving lives. This has been our approach to the business for the last 50 years, from the clean rooms that enabled silicon chip production to the telecommunication installation services that connected industries and consumers to the Internet. ISO has enabled the most important technological transformations of the last century. For all of the innovations we've helped advance, none have provided as much of an opportunity to make more meaningful impact than the current iteration of our mission. helping accelerate the nation's adoption of solar energy. This is a generational opportunity. Decarbonization and EV adoption are projected to drive electricity demand. Current projections by the U.S. Department of Energy suggest that solar deployment will shoulder a significant share of this increase in demand. In 2021, solar served between 3 and 4 percent of U.S. electricity demand And even by most conservative estimates, the U.S. Department of Energy projects that this figure will increase to 37 to 42 percent by 2035, an increase of over 1100 percent. ISUN is uniquely positioned to meet this demand as it arises in each segment of the solar energy industry. Over the last year, ISUN has assembled a platform capable of addressing this generational opportunity presented by decarbonization and EV adoption. Now that it is complete, ISM can serve each segment of the solar marketplace, residential, commercial, industrial, and utility, with a comprehensive suite of services encompassing each stage of the solar development process. By serving each segment, ISM's combination of skills will drive and grow our backlog, generate new demand, and create efficiencies throughout the organization. As I stated earlier, our development and engineering team works directly with customers who want to invest in solar assets. On a fee-for-service basis, we guide them through the entire development process, from land origination and control, rapidly diligence project sites, vetting technical feasibilities, executing internal engineering packages, and negotiating PPAs, and running the finance process. This creates immediate development services revenues and provides ISUN with EPC rights as projects achieve notice to proceed, while maximizing the value of the solar asset for our customers. Being involved throughout the entire process provides us with a differentiating advantage over our competition. Another example of driving efficiency is our combination of skill sets. Suncom's digital marketing has created low customer acquisition costs. We often come across residential and commercial customers who want renewable solar energy but are unable to have solar where they live or work. ISUN, with our combined internal skills, can now convert that lost customer to a community solar customer. Our development and engineering team, working closely with solar asset owners, can develop community solar projects, Suncom can provide those customers to the community solar asset, and our industrial group will provide the EPC work. The buying power created by our utility group will assist by providing internal savings on the equipment and materials to construct this asset. Additionally, our participation early and throughout the process will help us more efficiently manage the labor needs of the project. As our team works collectively and collaboratively we can drive down the total cost of the solar assets, protect our margin, and accelerate the transition to solar energy. As we know, it isn't always sunny in the solar industry. And while the overall macro opportunity remains strong, there are some headwinds and challenges for the industry. Recently, the US Department of Commerce initiated an investigation for circumvention tariffs on solar products from Cambodia, Malaysia, Thailand, and Vietnam. This, in addition to commodity inflation, supply chain constraints, and rising interest rates, has created some uncertainty in the industry. These headwinds are the exact reason we built ISUN as a multi-segment, full-service solar company. The combination of skills and services will allow us to drag total project costs down and to serve the segment with the most market demand. 2022 marks ISUN's 50th year of business. In that time, we have been through many industry and economic headwinds. We believe these capabilities afford us a unique position in the marketplace and represent a tremendous opportunity for shareholders. We are monitoring each of these developments closely and will continue to evaluate the impacts they will have on each of our divisions in our forecast for 2022. With that, I'd like to hand things over to our CFO, John Sullivan. As John will illustrate, we're encouraged by the initial operating performance of our platform and are excited to deploy these capabilities across a full calendar year. John?
spk06: Thank you, Jeff. 2021 was an exceptional and impactful year for ISUN. We successfully de-SPACed, we expanded our geographic footprint with services provided in 13 states, successfully completed four acquisitions, and expanded our capabilities to serve the residential, commercial, industrial, and utility segments. I'll focus our discussion on our full-year results, but we'll also discuss our fourth quarter results as well. The fourth quarter provided us the first opportunity to fully evaluate the impact resulting from the execution of our strategic plan. ISUN reported full-year 2021 revenue of $45.3 million representing a 24.3 million, or 115% increase over 2020. Revenue growth was driven by the continued execution of our large commercial and industrial backlog, which accounted for 49% of that growth. Development and professional services contracts, which accounted for 7% of that growth. And residential installations, which accounted for 60% of that growth. In the fourth quarter, we reported revenue of 27 million, representing a 17.7 million or 190% increase over the same period in the prior year. Gross profit for the year was 6.4 million, representing a 4 million or 173% increase over 2020. Gross margin for the year was 14.1% compared to 11.1% in 2020. Gross profit for the fourth quarter was 5.6 million, representing a 3.8 million or 214% increase over 2020. Gross margin for the quarter was 20.7% compared to 19.1% in 2020. As noted in previous calls, we experienced some margin contraction at the beginning of 2021 due to material and commodity pricing as well as inefficiencies resulting from labor shortages. Our margins began to improve in the third quarter as operations returned to a more normal pre-COVID environment. In the fourth quarter, we experienced an overall margin improvement due to the diversification of our revenue stream, which reduced our concentrations into one segment and insulated our margin from abnormal fluctuations. We anticipate this trend continuing as our revenue mix continues to evolve over a full year in 2022. Operating income for 2021 was a loss of 10.6 million compared to a loss of 1.7 million in 2020. In 2021, our focus was on constructing our platform capable of providing our full suite of services across the solar marketplace. We are poised to capitalize on that transformation in 2022. ISUN reported a net loss of 6.2 million or 67 cents per share for 2021. compared to a net loss of $1 million or $0.24 per share in 2020. EBITDA for 2021 was a loss of $5.3 million compared to an EBITDA of $0.4 million in 2020. After adjustments for one-time expenses incurred during 2021, adjusted EBITDA was a loss of $3.9 million. As noted above, the fourth quarter was our first opportunity to measure the performance as a combined company. EBITDA for the fourth quarter of 2021 was a loss of 0.5 million. More importantly, when adjusted for one-time expenses related to M&A transactions, our adjusted EBITDA was 0.9 million. We are excited to see the continued results from the deployment of our platform in 2022. The demand for solar and electric vehicle infrastructure continues to increase across all customer groups. Our residential division has customer orders of approximately 19.2 million expected to be completed within four to six months. Our commercial division has a contracted backlog of approximately 9.3 million expected to be completed within six to eight months. Our industrial division has a contracted backlog of approximately 73.8 million expected to be completed within 12 to 18 months. And our utility division has 550 megawatts of projects currently under development with an estimated commencement date late in the third quarter of 2022. Now turning to the balance sheet. With the execution of a significant transaction in Q4 of 2021, the company deployed a significant amount of cash to close the acquisition of Sun Commons. Overall, the balance sheet remains healthy and increased total assets at December 31st, 2021 to 103.7 million compared to 19.6 million at December 31st, 2020. Current assets increased to 24.1 million at December 31st, 2021 compared to 8.5 million at December 31st, 2020. Receivables increased to 14.3 million which is supported by the $27 million fourth quarter revenue. Collections remain strong with on-hand cash of $2.2 million at December 31, 2021. Total liabilities increased to $43.9 million at December 31, 2021, compared to $11.7 million at December 31, 2020. Stockholders' equity increased to $59.9 million at December 31, 2021, compared to $7.9 million at December 31, 2020. Included in our liabilities at December 31, 2021, is a short-term bridge loan of approximately $6 million that was utilized as part of the Suncommon transaction. As previously announced, that loan was paid in full on March 14. With the positive results experienced in Q4, the increase in overall demand for solar solutions We are confident that the company has built a platform capable of addressing the generational opportunity presented by decarbonization and EV adoption. Thank you. And with that, I'll open the line for questions. Operator?
spk01: Certainly. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star 1 on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star 1 on your phone. Please hold while we poll for questions. Your first question is coming from Jeffrey Campbell from Alliance Global Partners. Your line is live.
spk07: Good afternoon, and first, congratulations on the strong finish to 2021. Good afternoon, Jeff. I'll ask four questions today. First, can you talk a little bit about the large solar canopy order? First, why did the client prefer the canopies versus the ISUN Mobility Hub solution? And second, how did this morph into this large multi-year wind that you ultimately arrived at?
spk04: Sure, I can take that. Their preference was really based on user experience and part of the way consumers operate now. We all have our favorite gas stations where we go and fill up. And as companies are out building their brand and their EV network, I think a lot of them have realized that the user experience would be incredibly important. And so providing a canopy for them that met those needs was important. And that as we were working with that customer to help with their needs and focus really on the customer and the customer experience, it turned into a large multi-year order that will be rolled out through 22, 23, and 24.
spk07: Okay, thank you. The press release noted the first utility project from the greater than 550 megawatts in development is expected to commence late third quarter 22. I want to ask was this progression already anticipated in current 2022 guidance?
spk04: Yeah, so our current guidance is that we will have a utility scale project out of our pipeline that totals 550 megawatts. We anticipate one of those will enter notice to proceed and have permits and begin the construction process late in Q3 or Q4.
spk07: Okay. Okay, great. I appreciate that clarity. I noticed that year over year the solar assets on the balance sheet increased modestly in value. I wondered if the current effort with green seed investors and solar project partners remains the primary way ISUN will acquire equity interests in future solar projects, or if you have other avenues that you can consider. I guess there I'm sort of thinking about the development of professional services effort.
spk04: yeah yeah absolutely there there are multiple ways that we can uh add to our solar assets on the balance sheet one of those is through the green bond relationship that we have the others could be uh through other partners who are looking to own assets and that we're developing assets and as we develop those we'll we'll uh you know look at one that we want to put on balance sheet and we can also develop uh some separately for our balance sheet as well oftentimes we'll need a a good customer who doesn't want to own the asset but wants to use renewable energy and save some money on their electric bill. So that would be an opportunity for us to unbalance sheet that and generate that recurring revenue as well.
spk07: Okay. And finally, now that ISUN has full exposure to the entirety of the PV solar project development type, does ISUN still have an appetite for M&A? And if so, What part of your business would you most like to accelerate through acquisition?
spk04: Yeah, there's a couple of acquisition candidates that we would be targeting. Smaller solar companies looking to grow their business in areas that are ripe for expansion, that are run by grid operators, where we can use the platform that SunCommon has built and expand on it and grow in new territories. And then the other one would be the traditional electrical contractor that hasn't had a lot of exposure to solar, doesn't have a lot of solar customers, but operate in an area where building commercial and industrial utility scale solar projects will be happening. And that may not have a transition plan for the business as it moves forward. So those would be the two key areas we'd be focused on.
spk07: Okay. Thanks again. I appreciate the answers.
spk04: Yeah. Thank you. Thank you very much, Jeff.
spk01: Thank you. Your next question is coming from Justin Clare from Roth Capital Partners. Your line is live.
spk03: Hey, guys. Thanks for taking our questions.
spk04: Absolutely. Hey, Justin. How are you?
spk03: I'm good. So I guess first off here for the 2022 guide, it looks like you're not making any changes, but I wanted to get a sense for the risk here related to the anti-circumvention case and the module supply. So just wondering, could you talk about how much of the planned volume in 2022 already has modules delivered or secure? versus how much of the volume this year do you still need to procure when looking at the modules? And then just how difficult is it right now to put in new orders, given the challenge with imports these days?
spk04: Yeah. So on the residential side, we've got a pretty good access to panels and equipment. Industrial side and commercial, most of that has been either pre-purchased by us or partners. The utility scale is a little different. We do have projects that will need some panels on that side. We do have areas that we're looking at outside of the circumvention areas.
spk03: Okay. Just so I understand correctly, so for the utility scale project that you're planning to start in Q3, you don't yet have modules procured. If it is challenging to get those modules, could we see a delay there? Or would you anticipate starting on the construction that you are able to do without modules? Is that a possibility?
spk04: Hard to speculate what would happen if we were unable to get modules. We'll continue to assess the situation. We'll continue to drive the project forward. I think that there is a desire to get projects moving and keep them moving. So hard to speculate exactly what we'd do if we couldn't get any modules. But like I said, we're out in the market. We're talking to a lot of suppliers outside of the the tariff area and we'll continue to monitor that and update the market as we have something more definitive.
spk03: Okay, great. And then just considering the cost inflation that we've seen across the supply chain and it sounds like module prices are going a bit higher as a result of the anti-circumvention case, can you just talk through you know, the potential impact to margins here? Is there a risk to the downside for margins, or are you pretty comfortable with how things are evolving?
spk04: Yeah, right now we're pretty comfortable with how things are evolving. We've, you know, there is, you know, all of the items that I talked about as headwinds, we specifically have a multi-segment company to address that. We want to meet demand where it comes first. We've got panels in place on the residential and commercial side. A lot has been pre-purchased for industrial projects over the years. Other commodities are a much smaller part of the overall project. So we think we can also utilize labor efficiencies by shifting people to projects as the demand arises there.
spk03: Okay, sounds good. And then just one more for me, you know, with the equity that you've raised from the ATM over the past couple of quarters, just wondering, could you talk about your capital needs going forward here? Do you anticipate needing any more equity in the near term? You know, you already repaid the bridge loan here, so it seems like you're in a decent spot, but just wondering if you could talk through, you know, equity needs and and maybe also any plans that you might have for debt restructuring.
spk06: Hi there, Justin. I'll jump in here. This is John. So we are currently in active discussions with various partners to restructure our debt portfolio. When we conducted and completed the acquisitions throughout 2021, We were not actually able to bring in the collateral assets with each of those partners into our existing line of credit with our banking partners. So we're in active discussions to restructure that short-term line of credit. And once that's restructured, that provides us with the working capital needs that can help fuel the growth for the 2020-2021 2022 guidance.
spk03: Okay, great. I will pass it on. Thank you.
spk01: Thank you. Your next question is coming from Noel Parks from Tui Brothers. Your line is live.
spk02: Hi, good afternoon. Good afternoon. Hello. I just had a few things. Sorry if you touched on this already and I missed it, but could you talk about the labor market, labor availability, both in-house and among partners, is there competition, sort of poaching going on among vendors? And I'm just curious. I saw also in the 10-K I mentioned that about 1.2 million of the year's GNA was acquisition-related, and I wondered if there was any retention compensation in GNA from the acquisition.
spk04: Let me address the labor market. The labor market's been tight. It continues to be tight coming off from COVID. We've got long-standing employees, a lot of employees, and a lot of partners who we've worked with in the past. So we haven't seen a lot of coaching. We haven't seen partners unavailable to work. And also being serving multi-segments, we can shift employees from one project to another to meet the demand and meet schedules as they arise. And so, you know, we think the platform that we've developed will help us smooth out some of the labor challenges and also will help us become an employer of choice for people who want to work in the industry and have exposure to the different segments.
spk02: Great. And the GNA, I just wondered if there had been retention compensation in there this year?
spk06: There was some small retention compensation that was included in the 2021 numbers.
spk02: Okay. Okay, great. I was also wondering, you know, by the different segments, residential, commercial, et cetera, Just wondering if you saw any relative changes in the different business lines in terms of sales cycles or decisiveness among customers. Any of them, the segment's getting more aggressive. Any of them hanging back now? Since you pre-announced and gave guidance, of course, we've had a lot of global turmoil. It's sort of shifted some thinking about, I guess, overall energy capital investments. So just any trends you can tease out there?
spk04: Yeah, we've certainly seen on the residential side additional demand as their electricity prices are fluctuating, changing from month to month in some of the utilities. So we've seen some of that. You know, the other projects are sort of longer timeline projects, which aren't going to tend to be as reactive to, you know, short-term issues. So we haven't seen Robert Harrison, Demand slow down there. The, you know, one of the good indicators for us is the number of projects that we're Robert Harrison, Looking at for for others and divine design and engineering services. Robert Harrison, And that's really the future demand that will drive into the company as we're developing those projects and that demand is strong as well. Robert Harrison, And I think what people are realizing is that, you know, oil prices are probably higher for longer and the shift to renewables will probably accelerate here. as well as the demand for energy. So one of the ways to meet that and one of the things that we believe in is transitioning as much energy as we can to clean renewable energy with solar and battery backup. And we're seeing utilities and commercial companies and residential consumers all sort of moving in that direction. And I think with global turmoil and high oil prices, we think we'll see that continue to accelerate.
spk02: Right, right. I think you might have just touched on this, but do you have any thoughts or insights just on the role of, is there increasing expenditure you're seeing in terms of storage, you know, sort of alongside solar installations, people looking to invest more in their storage capacity, either in terms of, you know, to give themselves extra flexibility or just sort of sheer sure volume that they're looking to do in terms of hours, they're looking to give some extra resiliency.
spk04: Certainly on the residential side, we're seeing steady demand there. I think our attachment rate is between 30 and 35 percent on storage. On the residential side, we're seeing projects continue to consider adding storage. And I think that as the time of use rates spread in amounts throughout the country, I think we'll see a surge in storage for those projects as well.
spk02: And could you sort of characterize, is everyone just heading down sort of pretty traditional battery-type paths? Are they looking into some of the, I guess... more capital intensive, but maybe more flexible other methods. I know things like gravity, space storage, etc.
spk04: No, we've seen traditional storage mostly. Traditional battery storage.
spk02: Great. Thanks a lot.
spk01: Thank you. Thank you. Your next question is coming from Joseph Osha from Guggenheim Partners. Your line is live.
spk00: Hello, gentlemen. Thanks for the call.
spk01: Yeah, thanks for jumping on.
spk00: Yeah. I wanted to return to the residential business here a bit. And, you know, you alluded to lead times in the sort of four to six month range. So two questions there. First, are those lead times still going out on you? And then secondly, are you encountering any point at which
spk04: uh customers begin to push back if you know the lead time's out past six months they say you know call call me later or are people willing to accept longer lead times at this point uh you know we're not seeing the lead time stretch beyond those those uh those times four to six months and yeah i think six months is you know as you get longer than six months i think you start to see displeasure and unhappiness among customers if you extend past that i also think that uh customers understand the difficulties in supply chain really throughout every industry uh and so uh once they're in the queue and once they have somebody selected uh and they've made a decision to go to solar uh you know they don't we haven't seen people canceling in greater numbers than typical uh based on some of these longer lead times i don't i don't really that's interesting
spk00: it kind of sounds like you're saying past six months is kind of the kind of the point where people start together yeah we don't you know we don't rate it but exactly okay um and then just return to storage and kind of to echo you know justin's line of inquiry on the module side i mean how are you finding procuring cells here especially given some of the the more recent disruptions out of Asia? How's that impacting your ability to get sales?
spk04: Well, we've been in the business a while. We have a lot of relationships that we're out leveraging. We haven't seen projects canceled thus far due to the lack of modules. We have sufficient supply for residential and commercial. Most of the industrial projects we do They've pre-purchased those for tax equity, and so, you know, we're out.
spk00: I was referring to batteries, not solar. Oh, I'm sorry. I was referring to batteries.
spk04: Yeah, no, we haven't seen any disruption in our battery supplies thus far. Good availability for what we need for residential, or typical, I should say.
spk00: okay are you you know i heard from another vendor recently that the new order times for for batteries sorry i should have said batteries rather than cells a little confusing um yes are out kind of 35 40 weeks would that be a fair characterization as to what lead times look for you guys on batteries at this point we haven't seen them out that far but i think it probably depends on where they're sourcing those and the vendors
spk04: and the relationship with those vendors. We haven't seen them out 35 weeks now.
spk00: Okay, and then my last question, and I'll go where I promised. We're hearing a lot of discussion out there right now given higher input costs and what's happening in the financing side about price discovery and what that's going to look like. What would you say, in particular on the residential and then also sort of the C&I side, What's been the willingness of customers to absorb higher pricing at this point?
spk04: Yeah, so far we haven't seen a drop in demand based on some higher pricing. Certainly the higher comparable energy costs helps offset that. And as that higher energy cost sort of seeps into the Into the utility pricing, I think that the consumer will look at potentially higher prices in solar and still realize it still provides a great value. Okay.
spk00: Would you be willing if I asked you to choose, say, a generic residential customer or a generic CNI customer and say, you know, where is pricing relative to where it was a year ago in percentage terms? Is there a marker you could put out there for us?
spk04: Not sure I understood that question.
spk00: Sorry, that's me asking a simple question in a complicated way. What does pricing look like year on year for you guys?
spk04: Oh, yeah, I think it depends on the segment. We have seen pricing increases comparable with inflationary pressures, I I guess that's how I would categorize it. What we haven't seen thus far in some of the industrial projects are PPA adjustments yet. I anticipate moving forward we'll see PPA adjustments, which will make some of those larger scale projects more easily built as the costs enter the supply chain. cost of the utility I think will be adjusted as we move forward.
spk00: Okay. Thanks very much. I appreciate your answers.
spk01: Thank you. Thank you. That concludes our Q&A session. I will now hand the conference back to management for closing remarks. Please go ahead.
spk04: Thank you. I'd like to thank everybody for joining us on the call today. We look forward to providing the investment community with updates.
spk01: in further calls thank you very much for joining us bye thank you ladies and gentlemen this concludes today's event you may disconnect at this time and have a wonderful day thank you for your participation
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