You’re making a great point, I think one of the opportunities we have, even though we’re pleased with our attach rate being over 60%. I will say, it probably doesn’t get to 100% until we could offer a lower cost grid tied battery only, one that does not provide backup power, but just allows you to tap into the savings. So we’re exploring various ways to make that happen. We have options with our partners, with third-party options and internally and we’ll continue to explore those. But look for more news on that at some point soon. I think that would give us an opportunity to really reach levels. I hope in the 90s — 90% attach rate in California by the end of the year. So we’re quite excited. I think California interestingly enough has actually behaved like we thought it would this year.
We had a terrific first quarter. We had a very slow second quarter and it’s beginning to recover a little bit in Q3 and really the battery piece is the piece that we want to work on in California this year and end the year closer to recovery at a more normal state. So, batteries are a critical part of our business, and I think they’re going to be an even larger part of our business as we go forward, particularly in California and new homes.
Michael Blum: Great. I appreciate those comments. Then just wanted to ask a question on your 2024 commentary, which was really helpful. I guess the question is, what are the elements that you think you can control in 2024, because clearly the macro will have some impact, interest rates economy, natural gas prices, et cetera, which are things that you can’t control. So curious in terms of what you think you can do to control the situation from your perspective? Thanks.
Peter Faricy: Yes. I think the most important lever that we wanted to highlight is the fact that we control our costs. We have the ability to control how much we invest from a platform perspective. But we also have the ability to make our material costs more cost effective and give consumers more value in our offering. So really for any business as you’re going through times that are slower growth than you would hope or that you expected, the most important thing I think you can do is do more with less, prioritize and really focus on the consumer. How do you provide more and more value for the consumer? When you take a look at the industry data, the Wood Mackenzie estimate of 75 million households in the U.S. would save money today, if they added solar — net of their solar cost, it’s really compelling.
We need to do a better job of building awareness for that and we need to do a better job of making sure that every one of those 75 million households is aware of how much money they would save if they went with SunPower tomorrow.
Michael Blum: Got it. Thank you so much.
Operator: Thank you so much. Your next question comes from the line of Andrew Percoco of Morgan Stanley. Please ask your question.
Andrew Percoco: [Technical Difficulty] for the time, just one quick question on the guidance for the remainder of the year. Can you just break down the levers that you expect to pull to get to your EBITDA guidance? I’m just looking at the customer count expectations in the back half of the year and other 40,000 customers or so, but a meaningful margin expansion implied in the guidance. So can you just break down how much of that is coming from gross margins and OpEx leverage? Thanks.
