Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 56

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 56
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, competition with utilities, and the interconnection of homeowner-owned and third party-owned solar energy systems to the electrical
grid. Governments, often acting through state utility or public service commissions, change and adopt different rates for residential
customers on a regular basis and these changes can have a negative impact on our ability to deliver savings, or energy bill management,
to customers. Many utilities, their trade associations, and fossil fuel interests, which have significantly greater economic, technical,
operational, and political resources than the residential solar industry, are currently challenging solar-related policies to reduce the
competitiveness of residential solar energy. Any adverse changes in solar-related policies could have a negative impact on our business
and prospects.

33

Technological changes
in the solar power industry could render our products uncompetitive or obsolete, which could reduce our market share and cause our revenue
and net income to decline.

The solar power industry
is characterized by evolving technologies and standards, which developments place increasing demands on the improvement of our products,
such as solar cells with higher conversion efficiency and larger and thinner silicon wafers and solar cells. Other companies may develop
production technologies that enable them to produce silicon wafers, solar cells and solar modules with higher conversion efficiencies
at a lower cost than our products. Some of our competitors are developing alternative and competing solar technologies that might require
significantly less silicon than crystalline silicon wafers and solar cells, or no silicon at all. Technologies developed or adopted by
others may prove more advantageous than ours for commercialization of solar power products and may render our products obsolete. We might
need to invest significant resources in research and development to maintain our market position, to keep pace with technological advances
in the solar power industry, and effectively compete in the future. Our failure to further refine and enhance our products and processes
or to keep pace with evolving technologies and industry standards could cause our products to become uncompetitive or obsolete, which
could materially adversely reduce our market share and affect our results of operations.

Already covered
supply and demand in the energy market is volatile, and such volatility could have an adverse impact on electricity prices and a material
adverse effect on our assets, liabilities, business, financial condition, results of operations and cash flows.

A portion of our operating
revenues are tied, either directly or indirectly, to the wholesale market price for electricity in the markets in which we operate. Wholesale
market electricity prices are impacted by a number of factors including: the price of fuel (for example, natural