The Next Phase for Solar
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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