Formed in 2012 the company is a leading innovator in the solar industry with strong intellectual property protections via utility and provisional patents, with a customer base primarily within large installation companies. Among its firsts are introduction of products that reduces cost and installation time in residential and commercial solar installations. The Company has developed solar racking systems with the same innovative approach for the both the residential markets and small commercial products. It has also developed a complete line of roof flashing products.
Currently in the market, at 55 cents per watt, the labor content in an average 6kw solar system costs approximately 3,000 USD. The company’s solutions address this cost issue with superior product quality.
The company’s product designs are aimed at reducing installation time and labor costs by 30% to 50% as compared to the existing racking systems currently on the market. The company is finalizing a new lightweight version of the patent pending racking system which can further reduce product costs by 25 to 30%.” Even though there has been significant reduction in the cost of solar panels over the past few years, no significant reductions have been introduced in the hardware and installation labor cost of the systems. Hardware costs have increased while soft costs, a component of which is installation labor remains at approximately 50% of the total system cost.
Specifically, the company’s primary points of differentiation revolve around racking systems and related products designed to reduce the materials required, roof penetrations and installation time. The company offers a tremendous upside for the right buyer by providing a market-proven set of products with favorable supplier relationships to minimize inventory investment.
The Company had its first commercial sale in late 2013. Its products are manufactured in the most cost-effective manner as the fabrication of the various parts required for its systems can be performed by most metal fabricators. The Company has arrangements with suppliers allowing for products to be sourced from multiple locations and has an arrangement with a major supplier for just-in-time inventory availability.
The company is able to achieve high levels of quality control to meet Clients’ desired products by dealing only with suppliers who have met the Company’s requirements and have, over time, produced products that have met or exceeded the Company’s specifications.
The owners are selling because additional resources required of the marketing and sales required to achieve the market potential cannot be supported by the current ownership as they have other investment priorities.
The global push for clean renewable energy coupled with decreases in the overall cost of the systems is causing a surge in installations. This growing market is served by a number of companies both large and small who operate on both a local and global basis. The cost of solar panels has dropped dramatically over the recent past with racking and installation becoming a more significant portion of total project cost.