Solar manufacturer predicts roll-up of US solar market
9th November 2009
Acro Energy’s CEO Harry Fleming has predicted that the solar industry is due for a roll up, with smaller companies merging to take advantage of the industry’s growth.
Fleming said, ‘As the market matures and consolidates, mom and pops will be reduced to under ten per cent of the market. Larger companies are more sophisticated, have a better cost structure and more efficient marketing costs.’
Fleming claims that mature businesses such as former electrical companies, account for 60 per cent of the US solar market, but the top installers in solar-hub California are gaining ground, with 40 per cent of the market share. He claims that supply is surpassing demand, which has resulted in panel prices dropping more than 50 per cent over the past year.
‘Because of vastly lower solar panel costs, we’re banking on 2010 being a break out year for solar in states beyond California,’ said Fleming
Acro Energy, which trades on Canada’s Venture Exchange, acquired its first acquisition, Acro Electric, in February 2009, which produced $7m in sales. The company has since bought two other solar installers with about $2m and $4.5m in sales respectively. With these three acquisitions, Acro Energy generates about $15m in revenue.
Fleming continued, ‘As our stock price rises in reaction to our acquisitions, we’ll be able to fundraise more and buy bigger companies. Our first goal is to achieve a strong presence in the most important geographical areas.’
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