Is leading residential solar installer Verengo positioning itself to find a buyer? The company has recently achieved a couple major distinctions, appearing on Inc. magazine’s 500|5000 List as one of the fastest-growing private companies in the U.S., and coming in at an impressive #4 on Solar Power World’s Top 100 Residential Contractors list.
Now, Verengo appears to be ramping down some of its operations in northern and central California while strengthening its position in the New York and southern California markets. Could this be in preparation for an acquisition — perhaps by a company with coverage in the areas where it’s ramping down?
We contacted Verengo to get further insight on the company’s plans. Ken Button, Verengo co-founder and president, told us, “We are focused on continuing to drive growth in our core markets, and we don’t otherwise comment on corporate activities.”
Today, Verengo announced in a press release that it has reached the 75 MW milestone with its 13,000th residential rooftop installation. The company also announced an expansion plan focusing on key strategic markets on the east and west coasts.
“Verengo is having its best sales year ever,” Button said in a statement. “Achieving 75 MW (megawatts) of PV solar installations in only six years is a remarkable accomplishment. It reflects the success of our company’s trusted values and innovative strategies designed to surpass customer expectations.”
“Our business is maturing. We believe that if we focus our investment in our most profitable core markets of Southern California and the east coast, particularly New York, we can lower consumer costs, enhance customer service and drive long-term profitable growth,” Button added, noting that the company recently closed a round of financing to support this growth plan.
“To better serve growing demand in other areas such as Northern and Central California, Verengo will optimize operations through our award-winning call center and through strategic channel alliances with premier solar finance and technology companies such as Clean Power Finance,” said Randy Bishop, Verengo co-founder and CEO, in today’s statement.
Elaborating on this, Button told us, “Verengo is still selling and marketing in NoCal and Central Cal as a high-quality brand but will do installs through local outsource partners to improve profitability.”
Earlier this year, Verengo’s Arizona call center was honored by CareerBuilder for the second consecutive year as one of the “Top Companies to Work for in Arizona.” The company says that leveraging efficiency through its call center operations is a key element of its strategic growth plan to reduce the cost of consumer acquisition and provide best-in-class customer service.
“We are committed to saving our customers money, improving their quality of life and increasing home value – which is why we have concentrated exclusively on the residential market,” Bishop said.
“The recent legislative passage of the Verengo-inspired Solar Permit Efficiency Act – AB 2188 (Muratsuchi) will also be a boon for business once signed into law by Governor Jerry Brown,” he added. “We believe this new legislation will save the average California homeowner more than $1,000 on the cost of a rooftop system by cutting rooftop solar permitting and interconnection times by 80%. Solar energy remains the future of American energy. Verengo’s new strategic growth plan ensures our company will be an integral part of that future.”
Verengo says it will be announcing more partnerships and alliances in the near future.