SolarCity has reduced the number of solar panels that it plans to install in 2016 from 1,000-1,100 megawatts to 900-1,000 megawatts. This lowered guidance is the direct cause of the cost and labor cuts SolarCity is making, resulting in an undisclosed number of layoffs, according to the company.

JP Morgan analysts say that the lowered guidance suggests slowing demand for home rooftop solar panels. This could be the result of changing state regulations, which in some areas now make solar panels less economical.

SolarCity CEO Lyndon Rive and his brother, CTO Peter Rive, will be slashing their own salaries from $275,000 to $1 in addition to labor cuts.

A SolarCity spokesperson said “We fully expect to grow again in 2017, but we must reduce costs in the short term to be in a position to do so.”

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