Vermont-based solar power installer groSolar of White River Junction, Vt. has agreed to acquire the residential solar division of Borrego Solar Systems of El Cajon, Calif. Financial terms of the agreement were not disclosed. Borrego Solar residential division operates in California as well as Massachusetts.
As a result, groSolar will emerge as one of the largest residential solar power installers in the United States, with residential operations in nine states in addition to their commercial and distribution channels.
With the purchase, the groSolar name will begin appearing at Borrego Solar’s residential locations in San Diego, Berkeley, Sonoma, Orange County, Silicon Valley, and Massachusetts.
In a related release, Borrego Solar announced that the company will narrow its focus to its fast-growing Commercial and Government Divisions, while immediately expanding operations to New York and New Jersey. Commercial and Government projects comprised 75% of the company’s revenue in 2008. Borrego Solar, which recently announced a $14 million round of venture financing, will continue to maintain significant operations in New England and California. In addition to its corporate headquarters in El Cajon, Calif., the company currently operates regional offices in New England, the San Francisco Bay Area and New York.
“With the sale of our Residential Division to groSolar, we can better address growing demand within the commercial and government sectors while expanding geographically into new regional markets,” said Aaron Hall, Chairman and CEO of Borrego Solar.
groSolar has recently been on a rapid growth curve, with acquisitions of Energy Outfitters of Oregon in December 2006, and Chesapeake Solar of Maryland in July 2008. The same month, the company signed a $175 million, four-year purchase agreement with Evergreen Solar to assure supply of its photovoltaic solar panels. The company signed an exclusive North American distribution agreement in October 2008 with Motech Industries, a leading maker of inverters that turn electricity from photovoltaic solar panels into household electricity. groSolar also recently signed an exclusive distribution agreement for the PanelClaw flat roof solar mounting system.
Borrego Solar said it finished 2008 with $60 million in revenue and more than $90 million in contracts. The company was the eleventh fastest growing private energy company according to Inc Magazine and #261 overall.
A recent report suggested that after a period of consolidation in the solar industry, installers will be in position for rapid growth in what is being called "solar 2.0."
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