Residential solar is having a good year in the U.S. That’s prompting expansions by top companies like SolarCity and Vivint. Now renewable energy provider Finavera Wind Energy (TSX-V: FVR) is also getting in on the residential solar action.
The company recently announced it’s entered into an agreement to acquire 100% of the equity of Solar Alliance of America, in a transaction valued at $6 million ($4 million in cash and $2 million in stock).
Solar Alliance of America, based in San Diego, California, is a solar sales and marketing firm focused on residential solar installations. In 2013, Solar Alliance enjoyed revenue of $20.7 million (unaudited). That year the company was also ranked #49 on Inc. magazine’s Top 500 list of America’s Fastest Growing Private Companies, making it #2 in the San Diego Area and #9 on the list of Top 100 California companies. In 2012, Solar Alliance was ranked #45 on the Top 500 list. Since its inception in 2009, Solar Alliance has installed about 1350 residential solar systems in southern California — not bad for a smaller company.
Finavera now plans to focus its renewable energy development efforts on residential and utility-scale solar projects in America. That includes growing its new acquisition.
Finavera CEO Jason Bak says, “The national residential solar market in America has been growing at 60-70 percent annually due to the dramatic fall in solar panel prices, the rise in electricity rates from traditional utilities and the availability of tax incentives. Over the past four years, the Solar Alliance team has grown their company aggressively and we feel that their skill set and cash flow compliments our renewable energy development experience. This will allow us to jointly scale Solar Alliance over the forthcoming year in order to take advantage of the unprecedented growth in residential distributed solar generation.”
Solar Alliance of America President and CEO Artie Rose will join Finavera’s Board of Directors on completion of the transaction. Rose has been involved in the solar energy industry since 1983. He began his career in Fresno, California and has held various executive positions over the past 30 years. In 2009, he co-founded Solar Alliance of America, which has become one of the fastest-growing residential solar contractors in the U.S. As President and CEO, Rose’s vision and marketing skills have earned him recognition as a top senior executive in the industry. He also co-founded the Solar Alliance Foundation, a nonprofit charitable organization that gives free solar electric systems to disabled veterans with financial needs.
Rose says, “We are very excited to join forces with Finavera. Working with their executive team will allow us to expand our marketing to other areas throughout California and the United States. This relationship presents excellent growth potential and will capitalize on a very unique time in the solar industry.”
The company anticipates closing of the transaction within 90 days, subject to due diligence and customary closing conditions.