It had to happen sooner or later. The combination of drastically lower prices for solar panels and the huge potential for industry growth is attracting the next level of industry players – the consolidators.
It’s a familiar trajectory: as an “immature” industry becomes more established, larger companies with greater marketing and financial muscle roll-up its many “mom and pops” into fewer larger firms.
That’s beginning to happen with solar installation firms. A handful of solar integrators are buying small U.S. installers, and that’s bound to increase. Akeena Solar (Nasdaq: AKNS), Real Goods Solar (Nasdaq: RSOL), Solar City (private), Renewable Energy Corp (REC.OL) and now Acro Energy Technologies (ART.V) are the most active consolidators.
Acro CEO Harry Fleming told me solar installers are ripe for roll-up – there are over 750 in California alone – which comprises 80% of the US solar market. Most are former electricians, not businesspeople, he says, an indication of an immature market. Mom and pops still own 60% of the market, but the top 10 installers in California are gaining ground – they now have a 40% market share.
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