Risk Factors of Energy Industry

RISK FACTORS ASSOCIATED 1) Existing electric utility industry regulations, and changes to regulations, whitethorn present technical, regulatory and economic barriers to the purchase and use of solar pushing systems that whitethorn significantly reduce demand for your solar readiness systems. 2) The expiration, excreta or reduction of these rebates, credits and incentives would waywardly pertain your trade. ) If the Internal receipts Service or the Treasury Department makes additional determinations that the fair foodstuff value of your solar energy systems is materially low your than what you have claimed, you may have to pay significant amounts to your investment breeds or to your caudex investors and much(prenominal) determinations could have a material adverse effect on your business, pecuniary condition and prospects. 4) Your dexterity to provide solar energy systems to customers on an economically viable basis depends on your ability to finance these systems w ith fund investors who require particular tax and different benefits. ) You need to enter into additional substantial finance arrangements to facilitate your customers access 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 contract your business would be materially adversely impacted. 6) A material expend in the retail price of utility-generated electricity or electricity from otherwise sources would harm your business, pecuniary condition and resultants of operations. 7) A material drop in the retail price of utility-generated electricity would particularly adversely impact your ability to attract commercial customers. ) Rising interest rates could adversely impact your business. 9) You must have guaranteed a minimum return to be original by an investor in certain of your investment funds and could be adversely affected if you atomic number 18 required to make any payments ch thonian those guarantees. 10) In your lease pass-through investment funds, there is a iodine-time reset of the lease payments, and you may be obligated, in connection with the resetting of the lease payments at true up, to bring back lease prepayments or to contribute additional assets to the extent the system sizes, greets, and measure be non consistent with the initial lease payment model. 1) You are not currently regulated as a utility under applicable law, but you may be battleground to regulation as a utility in the future. 12) A miscarryure to hire and go on a sufficient number of employees in key functions would constrain your exploitation and your ability to timely complete your customers projects. 13) It is difficult to evaluate your business and prospects referable to your limited operating history. 14) If you incur losses then it will be difficult for you to achieve or sustain profitability in the future. 5) You spirit competition from both traditional energy companies and renewable energy companies. 16) If you fail to remediate deficiencies in your control environment or are uneffective to implement and maintain effective internal control over fiscal 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 have-to doe with concentrated project risks that may casing 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 anticipated demand for your solar energy systems. Any shortage, delay or component price change from these suppliers could result in sales and installation delays, cancellations and loss of market share. 19) Your business benefits from the declining bell of solar panels, and your financial results would be harmed if this trend reversed or did not continue. 0) You act as the licensed general contracto r 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) Compliance with occupational safety and health requirements and best practices can be costly, and noncompliance with such requirements may result in potentially significant monetary penalties, operational delays and adverse publicity. 2) Problems with product quality or performance may cause you to incur warranty expenses and performance guarantee expenses, may lower the respite value of your solar energy systems and may damage your market paper and cause your financial results to decline. 23) Product liability claims against you could result in adverse publicity and potentially significant monetary damages. 24) Damage to your brand and report would harm your business and results of operations. 25) If you fail to manage your recent and fut ure issue effectively, you may be unable to execute your business plan, aintain high levels of customer service or adequately address competitive challenges. 26) You may not be successful in leveraging your customer base to pay off your business through sales of other energy products and function. 27) Your growth depends in part on the success of your strategic relationships with third parties. 28) The loss of one or more members of your senior management or key employees may adversely affect your ability to implement your strategy. 29) Your business may be harmed if you fail to properly protect your intellectual 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 deploy new systems may be adversely impacted. 31) You typic ally 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) Any unauthorized disclosure or theft of personal information you gather, store and use could harm your personality and subject you to claims or litigation. 33) In the long term if you intend to pad your international activities, which will subject you to a number of risks. Your long-term strategic plans include international expansion, and you intend to sell your solar energy products and services in international markets. Risks inherent to international operations include the by-line ? inability to work successfully with third parties with local expertise to co-develop international projects ? multiple, conflicting and changing laws and regulations, including export and import restrictions, tax laws and regulations, environmental regulations, confinement laws and other government requirements, approvals, permits and licenses ? change s in general 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 costs in recruiting and retaining individuals skilled in international business operations ? international business practices that may conflict with Indian customs or legal requirements ? financial risks, such as longer sales and payment cycles and greater problem collecting accounts receivable ? fluctuations in currency exchange rates congenator to the Indian Rupee and ? inability to obtain, maintain or enforce intellectual property rights, including inability to apply for or register material trademarks in foreign countries.