Jordan Levy: Thank you all for all the comments.
Operator: Thank you. And one moment as we move on to our next question. And our next question is going to come from the line of Kashy Harrison with Piper Sandler. Your line is open. Please go ahead.
Kashy Harrison: Good morning, and thanks for taking the questions. So first one for me, I know we’re not getting customer guidance for 2024, but I was wondering if you could give us maybe some more color on 4Q 2023 installation mix specifically. What proportion of installations were California NEM 2.0? What proportion were California in NEM 3.0? And then how should we think about non-California?
Peter Faricy: Sure. So on the customer side, I would say two things for color. One is, as I said in my opening remarks, we do believe that the new homes business windup end up being a greater share of our total customer count this year. That’s really due to the fact that there’s a new homes deficit in the U.S. And frankly new home builders have done a great job of managing higher interest rates in the economic environment. More new housing starts for the most part means more new solar, which is terrific. So I would expect that segment of our business to have an opportunity to grow in 2024. But we’ve been, as I mentioned earlier, very conservative in how we thought about the rest of the retrofit market. And that includes our dealers, SunPower Direct and Blue Raven.
And we’ve been — I would say, our customer expectations there are in line with the [Wood Mackenzie] (ph) and the [Home Analytics] (ph) forecast for this year. And then back to the fourth quarter for California NEM, most of the California NEM 2.0 installs finished up by the end of the fourth quarter. As we mentioned, we did actually go through and really work hard to understand what customers in California were serious about really getting residential solar. So we weeded out those cancellations and really got the installations done at the end of the year. So I think you’re really beginning to see the mix in the first quarter of this year be primarily from NEM 3.0.
Kashy Harrison: Got it. And then maybe a question on the business post restructure. Following all the employee rationalization and cost that you’re taking out, can you give us a sense of the level of customer, the level of installations you could do theoretically in a recovery scenario without adding more employees. So in other words, what is the level of demand that would require you to start making platform investments?
Peter Faricy: So the way we’ve thought about it — it’s a great question. We really have four different ways to go to market today. We have our terrific dealer network we talked about earlier. We have Blue Raven, which is, as you know, a part of the SunPower family and growing and thriving across the mid-part of the U.S. And then within our direct business, to give you some color, we have the ability to do our direct business both with our own employees and also with installing partners. And so, almost think of it as a process with multiple hurdles. When demand is uncertain or volatile or low, we probably won’t put ourselves in a position where we’re doing very much, if any, of our direct business. And we’ll really rely upon the dealer network in those geographies.
When demand levels begin to increase, we’ll be thoughtful about participating ourselves to make sure that we can cover customer demand with SunPower Direct. But even at the beginning of SunPower Direct, we’ll be looking for ways to keep those costs as variable as possible and using installation partners is a way to do that in the beginning before you have enough volume to put your own teams in place. The dream scenario is that, demand for residential solar gets so high that SunPower Direct has teams in the major metropolitan areas across the US. But we’re not in that position today, and I think part of the rationalization from 2022 to 2023 was really kind of recognizing this new level set of consumer demand. And so, we’re being, I would say, erring on the side of being cautious and thoughtful at this point.
Kashy Harrison: Helpful, thanks. And just one final one. Apologies if this was mentioned and I missed this or there’s some details somewhere, but what are the terms on the second lien note specifically? What’s the interest rate on the loan from Total, GIP and then how should we think about the maturity date?
Beth Eby: So the interest rate on the second lien is 13% cash or 15% is paid in [kind] (ph). And for both the amendment to our first lien, the maturity was pushed out. It’s a five-year maturity. And the second lien will be after that.
Kashy Harrison: Thank you.
Operator: Thank you. And one moment as we move on to our next question. And our next question is going to come from the line of Brian Lee with Goldman Sachs & Co. Your line is open. Please go ahead.
