INCENTIVES BOOST SUN BIG & SMALL

Financial Incentives Boost Burgeoning Solar Installation Business
Marty Graham, March 8, 2010 (San Diego Business Journal)

"…[M]ost of the solar installation businesses remained small and local until the combination of rebates, tax credits and financing schemes began with the California Solar Initiative and became more substantial with the American Recovery and Reinvestment Act of 2009…

"...[But] [The State of Solar] released [by the Greenlining Institute] in January found that the 10 largest installation companies captured just 41 percent of the large-scale installation work in the state, and less than 30 percent of the small-scale installation contracts. Put another way, there’s [still] plenty of room for small companies to compete in the rapidly changing industry…"

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"Small businesses are also benefiting from the combination of decreasing wholesale prices, extraordinary rebates and incentives, and a national consciousness moving toward sustainable resources…

"Solaire is a family-owned business, started by Jarrod Fisk, who worked in heating, ventilation and air conditioning while he started the solar energy business out of his home four years ago…The company works on mostly residential installations, buoyed by generous rebates, tax credits and incentives…Like many small companies, the focus is on technical expertise and financing. Marketing has been taking care of itself, as the world turns green…"

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"Solaire and many smaller businesses…[are] ripe for consolidation…Acro Energy Technologies Corp., Real Goods Solar, SolarCity and Akeena Solar Inc. are among the most aggressive large solar companies acquiring smaller companies, according to Rhonda Fried, director of SustainableBusiness.com. Acro, she notes, began acquiring California companies in February 2009 and is already in the top 10 market share for small solar installations.

"…Akeena, a publicly held company…launched in Silicon Valley in 2001, after founder Barry Cinnamon put panels on his own roof — and then on his neighbors’ roof…Akeena has several different businesses within the company. The company builds its own panels, selling to installers, and just recently began working with Lowe’s home improvement stores to sell photovoltaic solar panels and easy installation kits directly to the public. The company also installs both large- and small-scale solar projects…"