Sunrun has acquired the residential business of California-based REC Solar, a leading US module installer, putting itself even more squarely in competition with SolarCity within the fiery US residential rooftop PV market.
also acquire AAE Solar, a wholesale PV distributor, and SnapNrack, a mounting
systems business, all three companies bought from privately owned Mainstream
was already a major installation partner of Sunrun, which competes with the
likes of SolarCity, SunPower and BlackRock-owned Vivint in the booming
third-party ownership sector in the US.
based in San Luis Obispo, is not to be confused with the identically named
Singapore-based REC Solar, which was spun off from Norway’s REC Group last
being a major player in the US third-party ownership solar sector,
privatey-held Sunrun has relied on downstream partners like REC Solar both to
generate customer leads and to install modules.
Solar will put the company directly in front of homeowners for the first time.
held a nearly 3% share of the US residential PV installation market last year,
according to GTM Research.
acquisitions represent the next step in Sunrun’s “multi-channel growth
strategy”, says chief executive Lynn Jurich, adding that the deal will “lay the
foundation [for Sunrun] to become a major energy company”.
terms of the deal were not disclosed.
broke its businesses up to ready itself for the sale, and will continue
targeting the commercial rooftop sector as an independent company.
company’s claims to the contrary, many analysts believe San Francisco-based
Sunrun may launch an initial public offering sometime this year.
rival SolarCity – which were launched at less than $10 apiece in late 2012 –
currently trade at more than $70, giving the company a significantly larger
market capitalisation than US module giants First Solar and SunPower.