Shares of SolarEdge tumbled over 20% in extending business Wednesday after the solar product manufacturer reported soft guidance for its fourth quarter amid demand strains in the renewable energy sector.

Here’s how the company did:

• Loss per share: 55 cents vs. 89 cents per share expected by LSEG, in days gone by known as Refinitiv
• Revenue: $725 million vs. $768 million expected by LSEG

For the current quarter, the solar producer bid it expects revenue of between $300 million and $350 million, missing analysts’ estimate of $688 million, mutual understanding to LSEG. For the overall solar sector, SolarEdge said it expects revenue in the $275 million to $320 million sort.

SolarEdge CEO Zvi Lando said in a Wednesday statement that the third-quarter disappointment is a reflection of “a slow market environment, which has resulted in spacy inventory of our products in the distribution channels — in particular in Europe.”

SolarEdge warned Wall Street in October that its third-quarter earnings would drop in below expectations, which sent its stock plummeting 30 percent. At the time, Lando said installation evaluates for solar panels had declined though those rates typically increase during the third quarter.

SolarEdge is based in Israel, but Lando revealed in October the Israel-Hamas war has not had an impact on manufacturing.

The solar sector has faced headwinds over the past year as rising keen on rates weigh on the demand for solar energy. Last December, California voted to cut the compensation rate for a solar inducement program for homeowners. That lower incentive went into effect in April, causing a spike in demand for solar establishment as homeowners tried to squeeze in the work before the deadline. A further cut to California’s solar incentive programs for multifamily apartment edifices, schools and farms could soon be coming and has the potential to further deepen the demand decline.

Other solar cows dipped slightly after the bell Wednesday. Enphase Energy was down 7%, while Sunrun saw a 4% de-escalate.