Are All the Independent Solar Installation Companies About to be Bought Up?
Submitted by EnergyTechStocks.com
Two giant energy companies have quietly acquired companies that install solar photovoltaic (PV) systems, raising the possibility that other independent firms in the solar installation business could be next.
The UK’s Centrica Plc, owner of British Gas, recently acquired privately-held Solar Technologies Group Ltd. for about (Euros) 2.8 million, a price that included the repayment of debt. Separately, China’s Suntech Power Holdings Co. Ltd. last week said it acquired California-based EI Solutions, another privately-held solar installer.
With forecasts calling for huge increases in solar manufacturing worldwide over the next several years, and with installation firms representing the “final mile” currently missing from a number of otherwise fully-integrated solar manufacturers, it is logical to think that other firms specializing in solar installation could be acquired in the coming weeks and months.
While many solar installers are privately-held, a few are public companies. While there’s no reason to believe that any are about to be acquired, or even that anyone has approached them about being acquired, the fact that they are in the solar installation business may be enough for investors to want to keep a close on companies such as Akeena Solar Inc., a California-based firm that has been installing solar systems since 2001 in U.S. states such as California and New Jersey, where state government incentives have led to vibrant solar PV sales. Akeena, which trades on NASDAQ, presently has installation and licensing agreements with both Suntech and Japan’s Kyocera Corp., which has a big solar unit.
Another company that may be worth watching is Solar Power Inc., another California-based firm that trades on NASDAQ. This company has a subsidiary, called “Yes! Solar Solutions,” which opened its first retail store a year ago. Solar Power is itself an integrated solar provider, with a manufacturing facility that makes a patented mounting system which, according to the company, cuts material costs and reduces installation time.
SolarCity is yet another California-based solar installation firm that may be worth watching. While it is privately-held, should it be acquired, it would provide further evidence that independent solar installers could become an endangered species.
